Advertisements

Martin Lewis Warns Drivers Against Committing Fraudulent Practices to Save on Car Insurance

by Celia

As car insurance premiums surge to an average exceeding £1,000 per year, British motorists face mounting financial pressure. Amidst this backdrop, financial expert Martin Lewis has issued a stark warning, cautioning drivers against a potentially illegal method of reducing insurance costs.

Lewis highlights a common practice among young drivers seeking to mitigate high insurance expenses: adding a named driver, typically a parent, to their insurance policy. By designating an experienced driver as the primary policyholder, premiums often plummet. However, Lewis emphasizes that this approach constitutes fraud if the designated driver does not genuinely operate the vehicle for the majority of the time.

Advertisements

The financial repercussions of such actions could be severe, Lewis warns. In his Money Saving Expert newsletter, he unequivocally states, “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.”

Advertisements
Advertisements

Lewis’s admonition comes amidst a broader discussion on optimizing insurance coverage while minimizing costs. Contrary to conventional wisdom, he suggests that comprehensive policies may sometimes offer better value than third-party options. Despite offering more extensive coverage, comprehensive policies can be perceived as lower risk by insurers, potentially resulting in lower premiums.

The urgency of Lewis’s warning is underscored by recent data revealing soaring insurance costs. According to Confused.com, premiums have reached “record-breaking levels” in 2024, with an average increase of 12% compared to the previous year. Notably, young drivers aged 17-19 bear the brunt of these escalating expenses, facing average annual premiums of £1,690, as reported by MoneySuperMarket.

As motorists grapple with the financial strain of escalating insurance costs amidst broader economic challenges, Lewis’s counsel serves as a timely reminder of the importance of ethical and transparent practices in navigating the complexities of insurance coverage.

Advertisements

You may also like

blank

Bedgut is a comprehensive insurance portal. The main columns include commercial insurance, auto insurance, health insurance, home insurance, travel insurance, other insurance, insurance knowledge, insurance news, etc.

[Contact us: [email protected]]

© 2023 Copyright  bedgut.com