Experts in the insurance industry have warned that young driver insurance rates could increase to £3,300 a year or higher in some cases.
The reason insurers are looking to increase their rates for young drivers is down to changes in the way that compensation is paid to crash victims.
Unfortunately young drivers under the age of 22 are expected to be hardest hit as they are statistically more likely to be involved in a serious accident.
A spokesperson for the Association of British Insurers commented:
"It is little surprise motor premiums are rising because insurers have been hit with a mixture of extraordinary conditions such as increased cases of fraud and whiplash claims. When these costs come under control, the cost to drivers will fall."
The increase in insurance rates for young drivers could come as an additional blow to young female motorists as many may have already seen an increase in their premiums as a result of the EU Gender Ruling introduced in December 2012.
Commenting on behalf of the RAC, Stephen Glaister added that millions of people rely on their cars to get to work and high car insurance costs are likely to severely impact them. He added:
"Hikes in premiums and the new gender rules could make driving all but a dream for thousands of young women."
Fortunately here at iKube Insurance we offer discounted car insurance for young drivers based on the time of day they drive. As long as the policyholder agrees not to drive late at night (between 11pm - 5am) we can offer them discounted rates.