REVEALED: Top five tricks parents use to reduce motor insurance premium price
Research by the Co-op Insurance has found the top tricks that parents have used whilst applying for a car insurance premium in order to save money.
Despite parents often heralding the virtues of always telling the truth, when it comes to saving money on motor insurance many are not being entirely honest – and may not be aware of the potential consequences should they have to claim.
Here are the things that parents admit to doing to save cash:
- Fronted – added children to their motor insurance as named drivers rather than main drivers
- Provided inaccurate annual mileage driven
- Provided inaccurate information about where their car is kept at night
- Provided inaccurate information about the value of their car
- Not disclosed any enhancements that have been made to their car
These untruths, whilst seeming harmless, can have serious consequences down the line if a person comes to claim and the reality of their circumstances are uncovered. This is because this activity is a type of fraud and this has an impact on the whole insurance industry by pushing up costs for honest motorists. In extreme cases an insurer could refuse a claim or only pay a portion of it as a result.
When you take out motor insurance your premium is priced based on a number of risks including personal details such as your age and driving experience, and how much you drive the car so by not giving the correct information, the price is not appropriately priced for your driving.
According to the research which questioned 1,000 parents of young drivers, parents in the South East are the most truthful, with parents in Northern Ireland more likely to glaze over the truth. Dads are more likely to lie than Mums.
Most truthful parents – by region (most to least)
||South West |
In addition to this, parents often increase excess payments, and opt for third party rather than comprehensive cover to save money. Third party car insurance is the minimum level of cover required by law. Putting third party car insurance in place means, in the event you cause damage to someone else’s property or injure them while driving, that person will receive appropriate compensation as will any passengers, including your own. However any damage to your car or injuries to yourself are not covered.
Steve Kerrigan, Head of Telematics at the Co-op Insurance, said:
“Many parents believe that these untruths are a harmless way to save money but this is not the case and this type of activity pushes the price up for other honest road users.
“If a customer needs to claim it can soon become very clear if an omission has been made. For example, your MOT will clearly state the mileage of your vehicle so the likelihood of being found out that you drive 60,000 miles a year and you have been priced for 10,000 is high.
“We understand that many parents are on a budget and paying for motor insurance is a financial commitment, especially when parents are also supporting children in their early adult years, however misleading or increasing excess payments to unmanageable levels is not without risk.
“Insurers, such as ourselves, cap excess limits for example and try to make insurance affordable for younger people through telematics policies which price on how you drive. We would always urge people to tell the truth to ensure that if you do have to unfortunately claim, that the claim is actually the least of your worries.”
Notes to Editors
Research conducted by Onepoll in 2015 questioning 1,000 parents of young drivers.
For more information contact:
Press and Media Relations Manager
07770 441 828