Car insurance prices can be costly for younger motorists and money saving expert Martin Lewis has revealed a unique way to reduce the costs. Prices could fall by including a named driver on a policy as the total cost will be an average of both the price for the young driver and the older motorist.
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He was responding to a question sent into ITV’s This Morning where a confused motorist asked whether placing themselves on a policy would save his daughter money in the long run.
Martin Lewis said: “I often suggest that experienced responsible drivers, especially when coupled with a young driver, can bring the insurance price down because [costs are calculated] on risk average.
“The answer is it is a trial and error case, do a quote with you and do a quote without you and see which is cheaper.”
According to Confused.com car insurance premiums are genuinely reduced with a named driver because your insurer will assume the inexperienced driver is spending less time in the vehicle.
Sharing the driving between a more experienced motorist and a young driver means the vehicle its at less risk of having a car crash.
It will usually cost around £30 to add a named driver to a policy but savings should be a lot higher.
Young motorists are forced to pay sky-high car insurance prices with MoneySuperMarketputting the average cost at over £1,200.
It means prices for young drivers between 17 and 24 are double that of the national average for a simple fully comprehensive policy.
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Data from MoneySuperMarket revealed adding an older driver decreases average premiums by 13 percent for main drivers aged between 17 and 19.
However, the money saving guru urged motorists to take precaution when adding a named driver to a policy.
A more experienced driver can be named as a second driver on a policy without any issues but accidentally placing them as the main driver can have devastating consequences.
Placing the experienced driver as the lead motorists will dramatically reduce costs but can be illegal.
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This is because you are saying the experienced driver uses the car more than the inexperienced motorist which reduces the overall perceived risk.
Lying to your car insurance policy about how the vehicle will be used could even be considered insurance fraud in severe cases.
Martin said: “It is not lawful for you to put yourself as the first driver on somebody else’s policy if you’re not, that’s called fronting and it’s illegal.”
Compare The Market says motorists can make sure they do not break the rules by making sure the person who drivers the car the most is named as the lead driver.
They say if ownership is a genuine 50/50 split, road users should check with their insurance provider to ensure they are on the right agreement.
Action Fraud says road users could be prosecuted and receive a criminal record by lying about their car insurance.
Policies are likely to be invalidated if an insurer finds out you have lied about you agreement which could see road users forced to pay for repairs themselves.
Research from GoCompare found 10 percent of parents had admitted to lying on their children’s policies in the past to desperately reduce charges.
A total of 34 percent said they would consider breaking the rules if it would help their children save on their car insurance agreements.
Compare The Market says young motorists can reduce their average prices legally by installing a black box eremitic system inside their cars.
Costs can also be reduced by taking a Pass Plus driving scheme or buying a less powerful vehicle.
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