The rise will add £22 to the average policy, and up to £105 to the insurance costs of a newly qualified young driver.

But with 18-year-olds already facing bills of £1,750 a year, they are being given a 'perverse incentive' to risk driving without insurance, say critics.

They say the current average fine of £250 for the offence is 'an incentive to lawbreaking' because it represents just a fraction of what a young driver would have to pay for a policy.

There are around 2m untaxed, unlicensed and uninsured 'rogue' drivers, according to Government figures.

Price comparison site comparethemarket.com says UK drivers are paying more than £500m a year to cover for uninsured drivers, an average of £31 each.

Jeremy Moll of comparethemarket.com said: 'The Government must act to reduce the number of illegal drivers on Britain's roads through more severe penalties.

'If the number of illegal drivers decreases, the industry will have more flexibility in pricing policies for law-abiding motorists.'