Claim-free drivers may have to end up paying more for their premiums if suggestions from the Transport Select Committee are followed, it has been claimed.

The British Insurance Brokers' Association (BIBA) was responding to the committee's recommendation that the insurance industry should lower premiums for novice drivers.

It says that such a move could lead to lost revenues being passed on to drivers with a clean claims record.

"BIBA believes it is only fair that the higher cost of claims caused by young drivers is reflected in their premiums," Graeme Trudgill, BIBA technical services manager, commented.

"Claim-free drivers should not be penalised because of reckless youngsters. BIBA believes in a fair system of risk-based pricing.

"Suggestions from the Transport Committee today that the insurance industry should consider reducing premiums for novice drivers would only lead to an increase in premiums for claim-free drivers."

The government should instead concentrate on raising awareness of the requirement for insurance and the consequence of uninsured driving - through active campaigning, including more questions on insurance in driving tests and revising sentencing guidelines for uninsured driving in magistrates courts, BIBA says.