A change in the way compensation is paid to accident victims means that those under 22 are set to be hit with higher insurance premiums.
With the new gender equality insurance rules coming into force today, here are seven tips on how to reduce your car insurance.
New rules mean that insurers are no longer able to take gender into account when calculating the price customers pay for insurance.
Saga Group's Director General Dr Ros Altman told ITV News that the gender equality insurance rules, which come into force today, were "really ridiculous".
Association of British Insurers spokesman Aidan Kerr has told Daybreak that there "are still a lot of factors involved when pricing car insurance other than gender."
He said: "Someone's age, occupation and where they live is also important."
Car insurance premiums could increase for young female drivers, under new EU rules.
Daybreak's Carla Eberhardt reports.
Despite the concerns, experts advise drivers not to suddenly ditch their policy to try to lock into a better deal, experts have said.
They may then be hit with a cancellation fee which could eat into any savings made and jeopardise their no-claims bonus, as successive years of insurance need to be built up.
The Association of British Insurers is urging customers not to focus on price alone but to shop around for the most suitable deal.
– Ian Crowder, spokesman for AA Insurance
The youngest drivers will be most affected. That's because young men are more than twice as likely to be killed or seriously injured in a car crash than their female peers.
Young women aged 17-22 typically pay up to 40% less for their cover than young men; well, until now at any rate. In middle age, there is little difference in premiums between the genders.
- A third of the women surveyed would have to cut back their living expenses to cope with higher premiums and one in 10 (11%) may end up selling their car, experts have warned.
- There are also signs that it is getting harder for young people to get a broader choice of car insurance quotes.
- Gocompare found that 17-year-olds looking for insurance get an average of 32 quotes, three fewer than at the start of November.
- Insurer Aviva recently found that a third of parents who help with their children's car insurance believe higher premiums when the new rules come in will force them to give up these payments.
– Kevin Pratt, Insurance expert at MoneySupermarket.com
There may be a period of a few days or weeks when the market adjusts.
There are over 100 companies trying to get business and they will inevitably monitor what the others are doing.