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The common ‘trick’ to cut insurance costs that could land you with fine of £1,000s and banned from driving
Scroll down to find out how to cut car insurance costs
DRIVERS have been warned over a common "trick" to cut insurance costs that can lead to fines worth £1,000s.
The simple mistake could lead to them being banned from the roads and ending up in court as well.
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Aviva is urging young drivers against "fronting" unless they want to end up in "serious" trouble.
The practice involves a young person being listed as a named driver on their parents' policy despite being the main driver of the vehicle.
A main driver is someone who drives the insured vehicle the most, usually the owner or registered keeper.
Insurance premium prices are decided based on the risk profile of the main driver, so misleading an insurer on this can mean your policy is invalidated.
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It can also breach the terms and conditions of your policy which is considered fraudulent and illegal.
Drivers found to be fronting can be hit with an unlimited fine, but also face a court appearance, having their car crushed and banned from the road.
Katriona Cunningham, underwriting fraud lead at Aviva, said: "Fronting is a serious issue that not only constitutes insurance fraud but also puts young drivers at significant risk.
“While it may be tempting for a few young drivers to try to be clever with the truth, it's important that they understand the consequences of driving without adequate insurance."
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The warning comes off the back of Aviva research which revealed one in six drivers aged between 17 to 25 admitted to being on a "fronted" policy.
The survey of 2,000 young drivers also found 35% believed "lying on my car insurance application is a victimless crime".
Five ways to cut your insurance costs
A further 49% weren't aware they could face a driving ban and over half didn't know their vehicle could be towed by police if they were found to have an invalid policy.
Only 35% of those surveyed knew they could be forced to pay an unlimited fine if found to be fronting.
To avoid falling into the trap of fronting on your car insurance policy, of course you need to accurately list who is the actual main driver.
Make sure you buy your policy from a registered company found on the Association of British Insurers (ABI) or British Insurance Brokers' Association's (BIBA) websites too and not a "ghost broker".
What is car insurance?
Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for...
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property - these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don't have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don't need to insure your car if it is classed as "off-road", or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
These scammers sell fake policies through social media that can leave you uninsured and at risk of forking out thousands of pounds if you're involved in an accident.
How else you can invalidate your policy
Drivers can invalidate their car insurance policy by adding a tow bar to the front or back.
This is because adding one of the gizmos counts as an after-market modification and needs to be declared on your plan.
Even small changes count as modifications and if not reported to your insurance company, could have your coverage scrapped.
Make this mistake, and you could land yourself with a six-figure bill.
That's not all. Adding a roof bar or roof rack without telling your insurer could see your policy invalidated too.
This is because it can increase the likelihood of thieves targeting your car, which puts more risk on your insurer.
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Other insurers might class the additions as making the vehicle more dangerous to drive too.
Unreported engine upgrades can be classed as after-market modifications as well and see you left without cover.
How to get cheap car insurance
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
It's a legal requirement to have car insurance, and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But there are several ways to slash your premiums.
Pay upfront
Insurers give you the choice of paying for insurance monthly or upfront.
Paying monthly spreads the cost of your cover but the insurer adds interest charges which means the average motorist pays around ten per cent more overall.
If you pay for your car insurance annually you don’t pay any interest.
A typical motorist can save up to £225 a year by paying in one go, according to comparison site MoneySuperMarket.
Increase your excess
The excess is what you agree to pay each time you need to make a claim on your policy.
You can usually choose your own excess when setting up a policy and it can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could bring the cost of your insurance down by agreeing to pay more if you do need to make a claim.
But before you hike your excess, make sure you would be able to pay in the event that you do need to make a claim.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, swapping your role from "chef" to "caterer" can save you £20, comparison site GoCompare found.
And changing your role from "fast food delivery driver" to "delivery driver" could save you £40.
But lying about your job could invalidate your policy so make sure any changes are legitimate and accurate.
Shop around
Not all comparison sites have the same range of insurers so to get the best price it’s a good idea to check two or three from Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check its prices directly.
You can also get a free cash bonus by going via a cashback site such as Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to the renewal date.
But you can buy your car insurance up to 29 days before the policy start date and 'lock in' the price you're quoted on that day.
A typical driver can save up to £265 buying new cover at least 27 days before their current policy ends, according to Go Compare.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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