Around one in four drivers aged under 25 years old admits misinforming their car insurer about policy details.
Over two thirds (68%) of young drivers did not understand that not telling the truth could be considered fraud and lead to a criminal conviction.
Over half of the 17–21 year old drivers confessed to ‘fronting’ to save money on their premiums.
This also places another driver at risk of a fraud investigation as they are named as the main driver of a car when they really hardly drive the car.
Other common lies were failing to tell insurers about car modifications (39%) and many claiming their car was kept in a garage while it stood outside (41%).
The findings were revealed after a survey by myvouchercodes.co.uk.
Many of the drivers admitting telling lies were young men drivers who generally pay higher car insurance premiums than women of the same age.
A 17 year old girl would pay around £2,900 per year to insure a Renault Clio while a man would pay £5,200, according to figures from the AA.
Mark Pearson, chairman of myvouchercodes.co.uk, says: “I would never recommend lying to an insurer to lower your premium, because it invalidates the policy and should you need to make a claim, you may find that you can’t.
“It’s a shame that people do this sort of thing to save money, because there are much better and more honest ways of getting money off.”
Besides invalidating insurance cover in the event of a claim, telling lies to an insurance firm can lead to a criminal conviction for fraud.
Insurers are also setting up an industry-wide fraud register to cross-check information on application and claim forms. Drivers on the register could be blacklisted by insurers, meaning they could find cover expensive or hard to source.