Young drivers could face a 'curfew' which would stop them from driving at night.
The Association for British Insurers also said younger drivers should have at least 12 months of driving lessons, a re-test two years after passing their first test, and have a limit to how many passengers they can carry.
They say that by banning under-25s from the road between 11pm and 4am, the number of road accidents would be reduced.
The chief of the Association, Nick Starling, said the proposals would make young people safer motorists. He said: "We must act to reduce the tragic loss of young lives."
The idea comes as insurance premiums for young drivers rocketed by 82 per cent in the past year. Mr Starling said this was a reflection on the huge risks new drivers posed. The Sun reports him as saying one in four people killed or seriously hurt in a crash is a young driver or their passenger.
The AA however say the proposals would "alienate" youngsters.
AA insurance director Simon Douglas said such a curfew would be "almost unenforceable".
What do you think?Do you have a teen who has recently passed their driving test?
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