Government proposals to overhaul driver testing

Commenting on proposals from the government to overhaul driver testing, Peter Gerrard, head of insurance research at price comparison site moneysupermarket.com, said: "With newly qualified drivers facing the highest insurance premiums, any course of action from the government to drive down the cost of cover and reduce accidents and injuries on the road is a step in the right direction.

"Young and newly qualified drivers have long been perceived as high risk by the insurance industry. For example, an 18-year-old single male driver with a 10-year old Fiesta in Leeds will expect to pay over £3,000 for car insurance. A 21-year-old - also without any driving experience - would pay less than £1,700; a saving of over £1,300 just for being three years older.

"Males, tarnished with the boy-racer image, also pay far more than their female counterparts. An 18-year old male living in Manchester and driving an X-reg Peugeot 206 would pay £1,550 a year more for comprehensive cover than an 18-year old female.

"Courses, such as Pass Plus, enhance driving skills and can reduce premiums by up to 20 per cent with insurers including the AA, Churchill, CIS, Direct Line, Endsleigh, Norwich Union, RAC, Swinton and Zurich. An industry-wide measure is needed though to ensure safer driving and lower insurance costs."

Other ways to cut your insurance costs:

Shop around - The Association of British Insurers says you can save 35 per cent by comparing as few as four insurers.

Buy online - The majority of car insurance providers offer discounts to customers that buy policies online.

Mileage limit - Agree to a mileage limit or to only drive at certain hours of the day (such as avoiding rush hour). Norwich Union offers a pay-as-you-drive scheme which reduces premiums by around 20 per cent if youngsters drive only during off-peak hours.

Car security - Make sure you have an alarm and immobiliser.

Drive a car with a smaller engine - Think about the car you drive. A newer, reliable car that is less likely to be used by 'boy racers' will earn cheaper premiums.