Erik Nelson, the company's spokesperson, added that there is a lot of misunderstanding on the issue.
"If a person wanted to drive a friend's car and were insured fully comprehensively on their own vehicle they would be third party only on their friend's car," he explained.
The spokesperson then added that if a friend crashes a person's car into a tree, they would face 100 per cent of the bill."
Recent research featured in the AA's British Insurance Premium Index stated that drivers under 21 are five times more likely to have an accident than older drivers.
Because of this, it has been claimed that younger drivers often struggle to afford comprehensive car insurance and usually only buy third party cover.
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