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Revealed: the top five tricks parents use to reduce motor insurance premium price

19th February 2016

Research by The Co-operative Insurance has found the top tricks that parents have used whilst applying for a car insurance premium in order to save money.

Despite parents often heralding the virtues of always telling the truth, when it comes to saving money on motor insurance many are not being entirely honest - and may not be aware of the potential consequences should they have to claim.

Here are the things that parents admit to doing to save cash:

  1. fronted - added children to their motor insurance as named drivers rather than main drivers
  2. provided inaccurate annual mileage driven
  3. provided inaccurate information about where their car is kept at night
  4. provided inaccurate information about the value of their car
  5. not disclosed any enhancements that have been made to their car.

These untruths, whilst seeming harmless, can have serious consequences down the line if a person comes to claim and the reality of their circumstances are uncovered. This is because this activity is a type of fraud and this has an impact on the whole insurance industry by pushing up costs for honest motorists. In extreme cases an insurer could refuse a claim or only pay a portion of it as a result.

When you take out motor insurance your premium is priced based on a number of risks including personal details such as your age and driving experience, and how much you drive the car so by not giving the correct information, the price is not appropriately priced for your driving.

According to the research which questioned 1,000 parents of young drivers, parents in the South East are the most truthful, with parents in Northern Ireland more likely to glaze over the truth. Dads are more likely to lie than mums.

Most truthful parents - by region (most to least)

Table by region
1 South East
2 Wales
3 Scotland
4 South West
5 East Anglia
6 North West
7 East Midlands
8 Yorkshire
9 London
10 North East
11 Northern Ireland


In addition to this, parents often increase excess payments, and opt for third party rather than comprehensive cover to save money. Third party car insurance is the minimum level of cover required by law. Putting third party car insurance in place means, in the event you cause damage to someone else’s property or injure them while driving, that person will receive appropriate compensation as will any passengers, including your own. However any damage to your car or injuries to yourself are not covered.

Steve Kerrigan, Head of Telematics at The Co-operative Insurance, said: “Many parents believe that these untruths are a harmless way to save money but this is not the case and this type of activity pushes the price up for other honest road users.

“If a customer needs to claim it can soon become very clear if an omission has been made. For example, your MOT will clearly state the mileage of your vehicle so the likelihood of being found out that you drive 60,000 miles a year when you have been priced for 10,000 is high.

“We understand that many parents are on a budget and paying for motor insurance is a financial commitment, especially when parents are also supporting children in their early adult years, however misleading or increasing excess payments to unmanageable levels is not without risk.

“Insurers such as ourselves cap excess limits, for example, and try to make insurance affordable for younger people through telematics policies that price according to how they drive. We would always urge people to tell the truth to ensure that if you do have the misfortune to claim, that the claim itself is actually the least of your worries.”


Notes to editors:

Research conducted by Onepoll in 2015 questioning 1,000 parents of young drivers.

For further information please contact:

Jenna Moss
Press & Media Relations Manager – The Co‑operative Group
Tel: 0161 767 4354/07770 441 828

About The Co-operative Insurance
The Co-operative Insurance is a UK-based general insurer that operates principally within the personal lines segments of the motor and home insurance markets. The Co-operative Insurance underwrites the majority of business written, supplemented with some small lines of business where The Co-operative Insurance acts as a distributor or has a 100% reinsurance arrangement in place.

With more than 1.18m customers, The Co-operative Insurance is committed to ‘Doing the Right Thing’ and always strives to treat customers and members fairly. The Co-operative Insurance pioneered the way in lowering the insurance premiums of young drivers as the first major insurer to launch a pay how you drive telematics insurance product for young drivers in 2011. Since launching the scheme, The Co-operative Insurance has saved its young drivers more than £7.2 million in their first year of driving.