Cash point

Young drivers could chop insurance premiums by more than £200 if they opt for a policy with a telematics box that monitors their driving. Moneysupermarket research shows 17 to 20-year-olds pay an average of £1,840 for standard insurance cover, compared to £1,638 with telematics.

Telematics boxes monitor the time and length of journeys, and smoothness of the driving. It identifies lower-risk drivers and the policy price is adjusted accordingly.

Kevin Pratt, consumer affairs expert at Moneysupermarket, said: “Telematics cuts costs for drivers and it makes the roads safer by incentivising good driving habits.”

Other ways young drivers can cut costs include choosing a car with a sub-1000cc engine and adding a parent to their policy.

Insurance Premium Tax rises tomorrow from 10% to 12% and will add £30 to a typical young driver’s policy price.