Young drivers with automatic-only licences face paying £760 more for car insurance than those who can also drive a manual vehicle, according to new figures.

In what is described as a “concerning” rise, figures from comparison site Compare the Market show motorists under 25 with automatic licences now pay £2,803 on average.

That is a year-on-year increase of £916.

It is a concern for the increasing number of drivers taking automatic-only tests, with DVLA data showing that 138,354 passed in an automatic car in 2022-23.

That figure was 34,749 in 2012-13.

“The increasing cost of car insurance is concerning for young drivers across the board, particularly those who have only learnt to drive automatic cars,” Julie Daniels, motor insurance expert at Compare the Market, said.

“These drivers face paying over £900 more this year to insure their car.”

The figures also show insurance premiums have risen since January 2023 by £644 on average to reach £2,009 for drivers under 25.

It all means young drivers now face paying £3,043 on average for the total running costs of a vehicle, a 25% increase from last year when this bill stood at £2,436.

“A tip for young drivers would be to look around for cheaper car insurance first, either when their policy is up for renewal, or when taking out insurance for the first time,” Ms Daniels added.

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“Adding an experienced named driver to a person’s insurance can also help reduce prices – as long as the information is accurate.

“Finally, a telematic policy, also known as a black box, can help give a younger driver more affordable quotes.”