MARTIN Lewis has warned drivers they could accidentally commit fraud in a desperate attempt to save money on their car insurance.
Many Brit motorists have already been struggling as car insurance premiums hit a near-unprecedented average of over £1,000 a year.
GettyYoung drivers can dramatically lower the cost of car insurance premiums with one method[/caption]
RexBut Martin Lewis has warned that the trick could backfire as it could be considered ‘illegal’[/caption]
Young drivers can make major savings by adding a named driver to their car insurance agreement.
Putting a mum or dad as the main driver suggests an experienced motorist is behind the wheel of the vehicle for the majority of the time.
This is likely to dramatically lower the price of premiums but is illegal if it isn’t true.
However, you could also be making a vital mistake that may backfire.
According to Martin, road users could see their car insurance policy invalidated immediately and could face further legal proceedings if they are caught.
Speaking on Martin Lewis’s Money Saving Expert newsletter, he explained: “Never add a parent (or someone else) as a main driver if they aren’t.
“This is ‘fronting’ and it’s fraud. It’ll be checked if you claim and the insurance will be invalid if you’re caught. You could even be prosecuted. Don’t do it.”
It comes as Martin revealed how drivers can get the cheapest car insurance possible while enjoying handy added extras.
The personal finance guru claimed that many motorists could be missing out on better coverage for a lower price than their current deal.
Road users are likely to look for options to cut down car insurance costs as premiums continue to soar amid the cost of living crisis.
Martin explained that some Brits could be overpaying based on a common misconception about which type of coverage is the most affordable.
The three tiers of coverage usually increase in price as the policy protects against more potential scenarios.
However, Martin suggested that this might not always be the case.
He told ITV’s Tonight Show: “If you want the cheapest, sometimes comprehensive policies can be cheaper than third-party policies.
“Comprehensive is seen as a lower risk by some insurers and that outweighs the fact you’re getting more for it.”
It comes as insurance premiums hit “record-breaking levels” in 2024, according to Confused.com.
Fees are up 12 per cent on last year, with drivers now paying an average of £632.
According to MoneySuperMarket, 17-19-year-olds are paying a staggering £1,690 per year for cover on average.
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