Young drivers across the UK have been urged to take extra care when buying car insurance, as experts warn many are falling into common traps that could leave them out of pocket.
The warning comes from the Financial Ombudsman Service, which stated that thousands of young motorists do not fully understand the details of their policies.
While driving for the first time is often seen as a major milestone, experts warned that the excitement can sometimes mean key insurance details are overlooked.
New figures showed that more than 1,200 car insurance complaints from drivers under the age of 25 were brought to the Ombudsman last year.
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The most common issues involved policies being cancelled, followed by problems with administration or customer service.
To help tackle the problem, the Ombudsman has highlighted several key issues that young drivers may not realise can affect their insurance coverage or premiums.
These include failing to declare car modifications, misunderstanding telematics "black box" policies and so-called "fronting".
Fronting occurs when a more experienced driver, often a parent, is listed as the main driver on a policy even though a younger driver uses the car most of the time.
Drivers have been urged to read through their car insurance policy to avoid unnecessary costs
| GETTYWhile this can reduce insurance costs, if done incorrectly, insurers may view it as fraud and cancel the policy.
Andy Wright, from the Financial Ombudsman Service, said: "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.
"Failing to declare modifications, 'fronting' policies, or misunderstanding telematics are all common pitfalls we've seen at the Financial Ombudsman Service.
"This is why we're urging young drivers to always read the small print and speak directly with their insurer if anything is unclear to avoid costly mistakes."
One issue that frequently leads to problems is undeclared car modifications, with some drivers having had their insurance invalidated after making changes to their vehicles without telling their insurer.
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Young drivers have been making the switch to black box insurance policies
| GETTYEven cosmetic changes such as body kits, custom paintwork or upgraded wheels can count as modifications.
Performance upgrades, including new exhaust systems or engine tuning, can also affect a policy and must normally be declared.
The Ombudsman explained that drivers should check their policy documents carefully and speak to their insurer if they are unsure whether a change counts as a modification.
Another growing source of complaints concerns telematics, or "black box," insurance policies, with concerns around how the policies are sold and how the data is used.
Drivers have faced higher car insurance costs throughout the years | GETTYSome young drivers have reported their policies being cancelled after leaving their cars at home while attending university, since the car was sitting idle.
Others have raised concerns about how insurers calculate driving scores and about unexpected premium increases.
Drivers should check what is covered, what information must be declared and what could invalidate their insurance, the expert stated.
Motorists have also been advised to check key details such as policy excess, whether a courtesy car is provided, windscreen cover and what happens if a car is written off.