Making telematics mandatory for young drivers could save hundreds of lives and the Government millions of pounds each year, says Wunelli.
The LexisNexis Risk Solutions company wants the Government to make young drivers exempt from the insurance premium tax (IPT) but to make telematics insurance policies mandatory for those in the 17-21 age bracket.
There were 1,732 road deaths last year and 14% of the drivers killed were aged between 17 and 24 years old.
Paul Stacy, founding director for Wunelli, said: “As the UK currently has no graduated licensing in place, it is crazy to think that young drivers can pass their test one day and the next day be driving a car full of people, on the motorway late at night.
"Even if they have traditional motor insurance, there is no way to monitor their driving behaviour in those crucial first few years.
“Something as simple as installing a telematics device will promote safer driving and have a long-term impact on the amount of road traffic accidents that occur every single day.
"It would be logical to make these policies more affordable by excluding them from IPT in order to increase the popularity of telematics in the younger generation but we need to go a step further than this and make it mandatory in the high risk younger age group.”
Wunelli has also found that young drivers are actually paying over 12 times more than older drivers per mile they drive.
According to the latest Travel Trends survey, the average 17-20 year old drives 1,307 miles per year.
With the average insurance premium around, £2,013, they are paying £1.54 per mile for insurance compared to a 40-49-year-old who does 5,720 miles a year and pays just over 12 pence a mile.
As IPT is applied as a percentage of the total insurance premium, it is yet another example of young drivers having to pay out more.
Telematics policies give young drivers access to more competitive motor premiums.
Stacy said: “Young drivers should be rewarded for taking out insurance and motivated to drive well, rather than be further penalised for their inexperience.
"Telematics should be the way to provide those most at risk with affordable insurance and incentivise them to drive safely.
"It’s no coincidence that as telematics-based insurance has increased in popularity in the UK, RTAs involving young people have fallen but we need to do much more to protect the lives of novice motorists today."