The RAC is rewarding motorists who prove they are safe drivers from this week with the launch of a Black Box Insurance scheme.
Drivers can show how safe they are by installing telematics technology, which records their behaviour behind the wheel.
As many as 500,000 UK drivers already have insurance telematics gadgets installed in their vehicles, according to the RAC.
It says the device will help motorists get a fairer car insurance deal since driving will be judged on individual merit rather than bring grouped together with others.
This is especially the case with young drivers. Those aged between 18 and 20 currently pay an average of £972 per annum, while under-25s overall pay £810. This compares with motorists of all ages who pay a typical annual amount of £367.
Young motorists claim that insurance costs are the biggest deterrent to buying or driving a vehicle. Some 62% of young motorists surveyed in an RAC poll claim this is so.
More than one in five (22%) say that the price of buying a vehicle is the biggest off-putting factor, while 12% reckon daily running costs are the greatest obstacle.
The RAC's new insurance scheme runs through a speed-tracking telematics device the size of a matchbox. This monitors safety through braking, acceleration and speeding habits of individual drivers.
The RAC's Black Box scheme differs from some other telematics deals in that motorists have no mileage or time restrictions.
Mark Godfrey, director of the RAC Insurance, said: "The cost of car insurance for young and new drivers is unquestionably high due to the high cost of claims, and unfortunately we expect the price of insurance to increase over the next few years which will make it even harder for young drivers to get motoring.
"The beauty of telematics insurance is that it is fairer for young drivers as it allows them to be judged on their own driving ability rather simply rated in line with every other young driver.
"We also know that better drivers are less likely to have an accident so RAC Black Box Insurance encourages safer driving and looks to reward good drivers with savings when they take a policy and lower premiums at renewal.
"It's estimated that there are in the region of half a million insurance telematics devices fitted in private cars in the UK and there are some estimates that suggest nearly half of newly qualified drivers take a telematics policy.
"We hope to further increase this with the launch of RAC Black Box Insurance as we have developed a best-in-class product which comes complete with the trust of the RAC brand."
Copyright Press Association 2015