Motorists who have recently qualified and taken out a car loan to buy a motor should be honest when it comes to organising their insurance, the Association of British Insurers has stated.
The group made this comment after being asked about the practice of 'fronting' - where a young driver deceives their insurer by claiming a parent is the main driver of a vehicle and they only use it occasionally.
Malcolm Tarling, general insurance expert with ABI, acknowledged it can be tempting to mislead an insurer in the attempt to save money.
However, he pointed out if a policy provider suspects it has been deceived it can refuse to pay out on a claim and may bump up the cost of future premiums.
"If you think you are saving money now, it's false economy because you will be spending more for many years to come," Mr Tarling concluded.
Meanwhile research by uSwitch has found drivers aged between 17 and25 pay more than double the national average for cover.
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