You just can’t avoid car insurance. It’s a legal requirement but in the event of needing to make an accident claim or, more importantly, having one made against you, you’ll be grateful you have it. Unfortunately for them, young drivers have a hard time finding car insurance, let alone paying for it. But whatever you do, don’t be tempted to try and break the law to save a bit of money. If there is ever an accident claim, you might very well regret it.
Under half of the major car insurance providers in the UK offer insurance for teenage drivers. Amongst those that do, it is common to see quotes as high as £4,000 which is often significantly more than the car is even worth. If a female teenage driver makes an accident claim, it is likely to be of lower value than one made by a male teenager, so it is the male teenagers who have the costliest policies.
Insurance companies are right to perceive teenage drivers as more likely to have an accident claim made against them. Drivers in this age range are ten times more likely to either kill or injure another person on the roads than experienced drivers are. Nonetheless, some parents are acting illegally in their attempts to bring down insurance costs.
According to the Motor Insurer’s Bureau, one in every five teenage drivers has no insurance cover at all. Many others engage in a practice known as ‘fronting.’ This is the practice of insuring the parent as the main driver of a car with the teenager as a named driver when in fact it is the son or daughter who is the main driver. Some see it as a harmless money saver. It is not even legal.
In the event of an accident claim being made the insurance company can investigate who really was the main driver and where policy holders have lied, there can be consequences. Parents and teenagers can be prosecuted and might find it difficult to get insurance again. Insurers can also refuse to pay out some or all of the accident claim settlement.
Attitude surveys seem to show that many people use ‘fronting’ and that people believe it is harmless. However, prosecution and paying the price of a whole accident claim settlement are too big risks to take to save a bit of cash.