A possible 50% rise in premiums could lead to more young people driving uninsured or providing wrong information to reduce the cost of insurance, an accountancy firm has warned.
Mazars said motoring will become unaffordable for many as a result of the expected rises.
Those living in rural areas will be the worst hit by the increase in the motoring premium for a young adult that is expected to go up from £2,400 a year to £3,600.
The rises may also prompt young drivers to switch to motorcycles where fatality rates are much higher than four-wheelers, the company said.
"The insurance industry needs to look at innovative ways to allow young drivers to get affordablecar insurance, while penalising boy-racers," said Craig Scarr, an insurance industry partner at Mazars.
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