Industry News from Yes Insurance

Recently qualified drivers should avoid misleading their car insurance provider in an attempt to cut costs, the Association of British Insurers has said.

Buying a 'fronting' policy - where a young driver claims they only use a vehicle occasionally and their parent is the main driver - could prove to be an expensive mistake if the provider discovers it has been deceived, the organisation warned.

General insurance expert with ABI Malcolm Tarling explained an insurer that believed it had been misled may refuse to pay out on a claim and could up the price of its cover in future.

No matter how tempting it is to lie in order to qualify for cheaper car insurance, it is not worth the risk, he claimed.

"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 added.

The ABI looks after the interests of the insurance industry in Britain.

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