Why You Could Be Left Paying for That Accident Claim

You just can’t avoid car insurance. It might be a legal requirement and an expense you could live without, but in the event of an accident claim being made against you, you’ll be happy you have it. However, younger drivers have a tough time even finding car insurance, never mind affording 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.

Rightly, insurers expect that teenage drivers are more likely to have an accident claim made against them. In this age group, drivers are ten time more likely to kill or injure someone than drivers with experience. But in trying to beat the insurance companies and drive down costs, some parents act illegally.

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. For some it is a harmless way of saving a bit of cash. 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. There may be prosecution and they might find they have problems getting insured again in the future. Not only this, but insurance companies can also refuse to pay part or all of the accident claim compensation.

Surveys seem to suggest that people think ‘fronting’ is harmless and that it is common practice. However it certainly isn’t worth risking prosecution, or the cost of a whole accident claim settlement if the insurance company refuses to, no matter how much money you could save.

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