Warning to the young: don't cut corners on car cover

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More Than estimates that it costs the firm £250 to install the GPS technology – money well spent according to Mr Maxwell: "We are trying to understand the dynamics of the young driver market and see what technology can do for us and the policyholder. The big idea is to price more accurately, so responsible younger drivers can avoid very high premiums."

Those who do not like the sound of a curfew can take more conventional steps to reduce their premiums. "Look at taking the Pass Plus driving course. This advanced qualification can bring discounts of 10 per cent on premiums," says Mr Nelson.

Mr Lewis argues that taking a little time to consider what type of vehicle you want can offset some of the financial pain. "Go for a smaller car in a low insurance group. And consider if you should go with third party, fire and theft cover rather than fully comprehensive, and whether you need the car for commuting or just leisure driving."

Mr Maxwell recommends paying a voluntary excess. "Younger drivers will have an excess imposed, but by agreeing to a slightly larger one, the premiums can be cut."

But the overall message from insurers is not to be tempted to go in for fronting. "One of the first things we check when a claim comes in is whether there has been any fronting," says Mr Maxwell. "It's not a wise move."
'Why would any 18-year-old buy car insurance?'

Kev O'Sullivan, 26, fronted for three years between 2000 and 2003 while at university, without realising he was doing anything wrong. "I had a Fiesta insured in the name of my parents but I took it to university with me. It was only afterwards that I realised I had been fronting"

He was far from alone in fronting while at university in Warwick. "The campus is quite out of town, so lots of students drive and all the ones I knew were insured in the name of their mothers or fathers. It was the only way that premiums were even remotely affordable. Why would any 18-year-old buy car insurance?

"I suppose I did have a niggling doubt at the back of my mind that what I was doing wasn't 100 per cent legit, but I never thought that the insurance could be invalid. There needs to be more information for students with cars."

When he graduated, he decided to transfer the cover to his own name to build up a no-claims discount. "I started to pay my own way in life and moved to London with my car."

But Kev, who now lives in Hampstead, north London, and works in marketing, no longer drives. "The Fiesta is parked in a garage at my parents' house and is legitimately insured. I haven't driven it since 2006."End.

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