Why You Could Be Left Paying for That Accident Claim

You just can’t avoid car insurance. You’re legally obliged to have it, but in the event of needing to make an accident claim or, more importantly, having one made against you, you’ll be very glad you have it. However, younger drivers have difficulty finding car insurance, never mind finding the cash to pay for it. But whatever you do, don’t be tempted to try and break the law to save a bit of money. In the event of an accident claim you will almost certainly regret it.

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Under half of the major car insurance providers in the UK offer insurance for teenage drivers. A policy with one of those that will is likely to cost as much as £4,000 which is usually more than the car’s value. Male teenage drivers have the priciest premiums because female teenagers are statistically more careful and those that do make an accident claim tend to have lower value claims.

Statistics support the insurance companies’ assumptions that teenage drivers are 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 more do what is known as ‘fronting.’ This is when parents claim to be the main driver of a car and name their child as another driver when in fact the child is the main driver. Some see it as a harmless money saver. It is not even legal.

If an accident claim is made and the insurance company suspects that the teenager was the main driver, there can be serious 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.

‘Fronting’ might seem harmless and surveys suggest many people are doing it. However, saving money, however much, is not worth the risk of prosecution or of having to pay for an entire accident claim settlement when the insurers refuse to.