Those who give their car insurance provider fake information to try to save on their premium are likely to find it a false economy.
According to GoCompare.com, doing so can "leave you severely out of pocket" as this money-saving scam will often "backfire" if a claim is made.
"Not being clear with your insurer about who is the main driver is a breach of trust, and technically fraud," explained business development director John Miles.
"If caught, insurance companies may cancel your policy or charge the correct premium as a lump sum and they can also refuse to pay out for claims."
The expert added that parents should not front a policy for their child as it will benefit the younger driver in the long run if they have their own deal and build up a no-claims bonus.
Research from the firm shows that car insurance for 17 to 20-year-old males now costs an average of £4,006 per year for comprehensive cover .
Giving car insurance firms fake information is false economy
Thu, 04 Aug 2011
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