Motorists could find themselves with increased motor loan costs as a rising number of accidents on the road raises insurance premiums, a new study reveals.

Research by Co-operative Insurance suggests that as there are 35 deaths and serious injuries affecting those under the age of 25 ever day, young drivers could find more of the personal loan they have taken out for their new car being spent on insurance costs.

Director of general insurance David Neave said: "If this trend continues many young car owners will be unable to afford insurance."

He added that rising accidents among young motorists had seen insurance costs for this age group increase by 22 per cent over the past three years, which could impact upon the size of their personal loan needed.

A study by Moneyextra revealed that Britons could be losing out on thousands of pounds by choosing an uncompetitive showroom finance deal for a new car instead of looking for a cheap personal loan.

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