The trade body has said the average annual premium of a 17- or 18-year-old driver would be reduced by up to £370 a year from an average of £1853 – according to its 2011 figures – if its list of proposals are enforced.

It added that nearly three million young people – or 8% of British licence holders – could benefit from the saving, which will be announced at the ABI’s motor conference in London today.

The ABI has called for a one-year minimum learning period for young drivers; a limit to the number of young passengers and restrictions on night time driving for young drivers for an initial period after passing their driving test; and zero blood alcohol driving limit for an initial period after a young person passes their driving test.

Otto Thoresen, ABI director general, said: “Sadly young newly qualified drivers are at a much higher risk of having a serious crash on our roads, which is reflected in the cost of their car insurance. Insurers want to see young drivers become safe drivers, which in turn will result in more affordable premiums. If the government implemented the ABI’s proposals lives would be saved and the cost of car insurance for young drivers could reduce by 15%-20%.”

Andrew Parker, partner at DAC Beachcroft, a partner of the ABI Motor Conference, said: “Much of the recent debate on the cost of motor insurance has been about excessive legal costs, but the toll of death and serious injury involving young drivers urgently needs to be tackled. These sensible proposals show that the industry wants to help – but insurers cannot solve this on their own.”

Sponsored

Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind

Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with

Sponsored by Post Office

The ABI noted car crashes are the single biggest cause of accidental deaths among 15-24 year olds with 40% of 17-year-old males having an accident in their first six months of driving.