Individuals named as second drivers on their parents' car insurance policies now have an average age of 31, according to research.
Car insurance specialists at comparison site uSwitch.com also discovered a 30 per cent rise in reported cases of "fronting" – where a young person buys and registers a car in their own name, but tells their insurer a parent is the main driver – and other forms of fraud in the last two years.
Mark Monteiro, uSwitch's insurance expert, points out that fronting is "a serious fraud" and holds potentially severe penalties for anyone who is caught.
"If detected, insurers can refuse to pay out for any claims or can settle a third-party claim and recover the cost from the parent as the policyholder," he notes. "If the insurer declines a claim, the young driver could be treated as uninsured and could be fined heavily and receive six penalty points".
As well as setting drivers up for higher car insurance costs, this could result in an automatic ban.
For anyone finding car insurance affordability an issue, he recommends looking at increasing your excess, downgrading your cover or trading your car in for one in a cheaper insurance class.
Tuesday, November 10, 2009
Swinton van insurance researchers uncover risky seatbelt trend
A new study of van insurance customers, carried out by Swinton, suggests nearly 80 per cent have trouble getting their passengers to "belt up".
The car and van insurance provider points out that drivers or passengers found not to be wearing a seatbelt in the event of an accident risk hampering a potential insurance claim.
Out of 2,000 van insurance customers questioned by Swinton, 68 per cent admitted having to ask passengers to belt up, with females accounting for 16 per cent of the so-called "un-beltables".
Just three per cent of van drivers said they don't wear a seatbelt on long journeys, the most common reason given being "discomfort".
"Driving or being a passenger in a vehicle and not wearing a seatbelt is strictly illegal," warns Phil Moss, commercial vehicle manager at Swinton. "Furthermore, if [you're] involved in an accident and it's discovered that you weren't wearing a seatbelt, [it] could seriously hamper any insurance claims."
In a separate study carried out by Swinton this month, seven out of ten van insurance customers admitted they use their vehicle as a "mobile office", spending an average of one hour and 23 minutes talking on their mobile phones every week.
The car and van insurance provider points out that drivers or passengers found not to be wearing a seatbelt in the event of an accident risk hampering a potential insurance claim.
Out of 2,000 van insurance customers questioned by Swinton, 68 per cent admitted having to ask passengers to belt up, with females accounting for 16 per cent of the so-called "un-beltables".
Just three per cent of van drivers said they don't wear a seatbelt on long journeys, the most common reason given being "discomfort".
"Driving or being a passenger in a vehicle and not wearing a seatbelt is strictly illegal," warns Phil Moss, commercial vehicle manager at Swinton. "Furthermore, if [you're] involved in an accident and it's discovered that you weren't wearing a seatbelt, [it] could seriously hamper any insurance claims."
In a separate study carried out by Swinton this month, seven out of ten van insurance customers admitted they use their vehicle as a "mobile office", spending an average of one hour and 23 minutes talking on their mobile phones every week.
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