This very interesting article was posted on Yahoo on Friday 5 August 2011 - you may find it useful.

You can find the entire article at http://uk.finance.yahoo.com/news/Young-drivers-afford-2-300-yahoofinanceuk-3996044557.html

Drivers under 22 are now paying an average £2,294 for car insurance with young men forking out £2,872 and their female counterparts, £1,671, according to the AA's British Insurance Premium Index. Shockingly, these sky-high costs represent a fall of 5.6% on the previous quarter and are far higher than the average driver's £924 premium.

"Young drivers have for a long time been the biggest losers in the insurance market with premiums driving them off the road," said director of AA insurance Simon Douglas.

"They share the greatest number of serious crashes, premiums have been rising at a disproportionate rate, but it seems at last that insurers are starting to compete a bit more for their business with rates starting to come down."

Although any fall in premiums will no doubt be welcomed by motorists, current costs remain unaffordable for many young drivers especially combined with record prices for fuel. But what are the options for young drivers desperate to reduce insurance costs?

[Useful: Are you overpaying for car cover? Compare quotes now]

Tracking technology

If you are a young driver, you are automatically considered high risk by insurers because statistically, motorists under 25 cause the most accidents. However, you could use telematics technology — which monitors driving habits — to avoid being penalised for other drivers' reckless habits.

A device known as a 'black box' or 'clear box' is installed in your car to measure information such as location, speed and time before feeding this data back to your insurer. The firm can then use this information to calculate the cost of your premiums based on your behaviour as a driver.

Go back to school

Taking a Pass Plus course could help you gain experience of more challenging driving situations and in turn, secure a discount on your premiums.

Established by the Driving Standards Agency, this course exposes inexperienced motorists to hazards they might not have encountered on standard driving lessons such as motorways and driving in the dark.

A Pass Plus course typically takes around six hours and you will not be required to take an exam at the end. Note, you will pay a fee which varies depending on where you take the course and how long your training takes.

Get help from mum and dad

Adding an experienced driver with a clean driving record to your policy could help lower the cost of your premiums. Seeing this person's name on the policy will reassure your insurer that the car will, on occasion, be driven by an experienced motorist.

As a word of warning, you should never falsely name someone else as the main driver of your vehicle. This is a serious type of fraud known as 'fronting', which if discovered, could invalidate your policy or result in a criminal conviction as well as invalidating the insurance.

Pay in a lump sum

Many drivers, regardless of their age, automatically choose to pay for their car insurance in monthly instalments to avoid a costly upfront payment. However, this may be the most pricey payment option as many insurance companies will offer you a discount if you pay annually.

If your finances won't stretch to paying the full amount of your annual premiums upfront, you could try paying with a credit card that has 0% purchasing power. Both Tesco and Marks & Spencer currently offer a 15-month interest-free period on new purchases.

Build up your no claims

As soon as you've passed your test, attempt to build up a no claims discount to cut the cost your premiums in the future.  Not only will driving safely help you avoid accidents, you should start to build up a clean driving record.

Although every insurance company is different, some companies offer a reduction of up to 65% on your premiums if you haven't made a claim.

Finally, almost all drivers will receive a more competitive deal on their car insurance by comparing a range of quotes, rather than simply renewing their existing policy. In some extreme cases, the saving could be several hundred pounds, which could prove invaluable to a young driver trying to cut costs.