The Financial Ombudsman Service has urged young drivers to take greater care when arranging car insurance after seeing a rise in complaints. More than 1,200 complaints were made by drivers under 25 last year, with the most common issues involving:
- Policies being cancelled
- Administration or customer service problems
- Claim delays or disputes, including slower than expected settlement times
In light of this, the Ombudsman is encouraging young drivers to understand the parts of a policy that can easily be overlooked.
Issues Young Drivers May Not Be Aware Of
A number of recurring problems have been highlighted, including:
- Undeclared car modifications – such as body kits, custom paintwork or performance upgrades including exhaust changes or engine tuning. These can create issues later if insurers do not have accurate information about the vehicle.
- Telematics concerns – particularly around how data is collected or whether policies were sold accurately. Some drivers have had policies cancelled when cars were left at home during university terms, leading to insufficient data. Others have seen premium increases due to driving score data they felt was inaccurate.
- Fronting – where a more experienced driver, usually a parent, is listed as the main driver of a car that is primarily used by a younger driver. This can invalidate the policy and lead to claims being rejected.
Even small oversights like these can cause significant stress and unexpected costs.
Ombudsman’s Advice and Insights
Andy Wright, ombudsman director, said young drivers often overlook key details when choosing insurance. As he explains, “Driving a car for the first time is often seen as an exciting rite of passage, but young drivers can overlook key details when choosing car insurance.” He adds that failing to declare modifications or misunderstanding telematics “are all common pitfalls we have seen.”
He also reminded drivers that the Ombudsman offers “free, fair and final answers to insurance complaints” if they feel something has gone wrong.
Wider Improvements Within the Ombudsman Service
This call for greater awareness forms part of the Ombudsman’s wider work to improve how it shares insights with the insurance sector. Speaking at a recent industry event, managing director Rachel Lam said the organisation is working closely with HM Treasury and the Financial Conduct Authority to build “much more clarity” around how it operates. She described the current moment as an opportunity to reset the early stages of the complaints process.
If you would like help reviewing your policy or understanding what affects your insurance, our team is always ready to support you. Call us on 02920 853759 or email contact@thomas-carroll.co.uk.
