The cost of car insurance for young drivers has always been high when compared with the premiums for more experienced road users.

However in the past few months, a couple of insurers have launched new policies which aim to make premiums more affordable by financially rewarding drivers for avoiding the road at night or steering clear of "higher risk" urban streets.

Drivers under the age of 21 tend to be hardest hit by premium increases due to the statistical likelihood of them being involved in a road accident. In the first year of driving, one driver in five is involved in an accident and every day, two people under the age of 25 die in road accidents in Britain.

Today the average 18 year old male is likely to pay well over £1,000 a year for insurance cover. Some insurance companies even refuse to insure drivers aged under 21 because they are the highest risk group.

Because of the high costs, the industry fears that some young people my opt to go without cover. In an attempt to alleviate these fears, a couple of insurers have created new products which are explicitly targeted at young adults. In doing so they have recognised that not all young drivers present a high risk and there are many who can be sensible road users who should not have to pay inflated premiums.

In August 2006, More Th>n created DriveTime, a policy which aims to offer cheaper cover as well as reduce the number of road casualties.

DriveTime is aimed at 18 to 25 year olds and requires a tracking box to be fitted under the drivers dashboard. The idea behind the policy is to discourage young drivers from using the roads between 11pm and 6am - when they are statistically most likely to have an accident. More Than says that it will cut 40% off its standard insurance rates for those on the policy, but drivers who use their cars after 11pm will pay an extra £25 fee for each day they do so. For example, More Th>n is able to insure an 18-year-old driver in a Vauxhall Corsa for under £900 a year, whereas another insurer would charge the same person more than £1,300.

More Than is not the only insurer to innovate by using in car black box technology. The UK's biggest insurer, Norwich Union has launched a Pay As You Drive insurance scheme, under which customers aged between 18 and 23 can have a GPS device installed that monitors each journey. The GPS device will tell the insurer when, where and for how many miles the car is used. A bill is then sent out every month itemising journeys, with the premium for each trip based on patterns of use, including time of day, type of road and mileage.

To encourage young drivers to leave their cars at home at night, Norwich Union charges from just 5p per mile during the day but £1 per mile between 11pm and 6am. It says customers can save an average of a third on their car premiums. Installation of the GPS system will cost £50.

Young motorists certainly need to shop around for the cheapest deals. You should get quotes from at least 10 different providers, including specialists. You can also save money by buying online as many insurers give you a 10% discount.

In addition, new drivers should seriously consider the Pass Plus training scheme which is specially designed course by the Driving Standards Agency (DSA), with the help of insurers and the driving instruction industry. The course is made of six practical modules which cover driving in town, in all weathers, on rural roads, at night, on dual carriageways and on motorways. You can take it at any time within the first 12 month of passing your test. It costs around £150 but can cut up to a third off your premiums. There is is no test at the end of it, instead your driving will be continually assessed and you must successfully complete all the modules in the course to an achieved or exceeded standard.