Motorists Fail to Take Cover

AS MANY as one in five motorists could be driving without insurance - a third more than last year.

In a survey by website www.moneysupermarket.com, 20 per cent of those questioned admitted driving their own or someone else's car uninsured.

Steve Sweeney, the price comparison site's head of motor insurance, says: "Whatever the distance, driving without insurance is illegal.

"Anyone caught doing so could face hefty penalties, which include a pounds 200 on-the-spot fine and six points on their licence.

"There's also the possibility of the car being impounded - involving a pounds 150 collection charge.

"If Brits are foregoing their motor insurance for cost reasons, it clearly is a false economy."

Even if you don't go without cover, you could still be gulty of a crime. If you have a named driver on your policy who is now the vehicle's main driver, you are guilty of an offence called "fronting".

Many parents do this for their kids as it is much cheaper than taking out cover of their own.

If you're found out, the insurer can cancel the policy or charge the correct premium as a lump sum.

If your policy is cancelled, it may be impossible to get competitively priced cover.

Insurers can also refuse to meet claims on fronted policies. This means the person behind the wheel could be fined for driving uninsured and receive six penalty points - leading to an automatic ban for new drivers.

Hayley Parsons, chief executive of insurance website Gocompare.com, says: "It is better for young drivers to hold insurance in their own name to build up no-claims discount."