Q. My son has just learnt to drive and has bought a new car. I can save a small fortune by putting myself as the principal driver on my son’s car insurance policy!
A. 20% of drivers have an accident in their first year of driving and 26% of road accidents involve at least one young car driver aged 17 to 24. As a result, car insurance premiums have been rising rapidly for young drivers and the average premium for a 17-22 year-old is currently £1,187.
Whilst it may seem an attractive option to name yourself as the main driver on your child’s insurance policy to reduce the insurance premium, not only could your insurance policy be invalidated but there could also be serious financial consequences.
In the unfortunate event that your child has an accident then you may be personally liable to the insurance company for any payment it makes to a third party. The insurance company can then pursue your assets to secure that sum, including your house.