Young drivers could save up to £370 a year on their car insurance if the government introduced new safety standards, according to the Association of British Insurers (ABI).
The average annual premium for a 17 to 18-year-old driver is more than £1,800.
But three million young drivers could save up to 20% of those premiums, if safety standards were improved, the ABI says.
It claims the number of deaths could also be reduced significantly.
“Sadly, young newly qualified drivers are at a much higher risk of having a serious crash on our roads, which is reflected in the cost of their car insurance,” said Otto Thoresen, the ABI’s director general.
“Insurers want to see young drivers become safe drivers, which in turn will result in more affordable premiums,” he added.
The ABI would like to see a one-year minimum learning period for young drivers.
It is also calling for a limit to the number of young passengers a newly qualified driver is allowed to carry.
Those who have recently passed their test would face restrictions on driving in the dark, which is known to be an additional safety risk.
The industry would also like to see zero tolerance for blood alcohol levels in any driver who has recently passed a test.
Current figures suggest that 40% of 17-year-old males have an accident in their first six months of driving.
The government will now consider the ideas being put forward by the ABI, along with other safety proposals.