The accident rates of young motorists are worsening while older drivers are making fewer insurance claims.
Claims made by drivers under the age of 23 have increased by more than 300% in the last five years, insurer Norwich Union said.
In contrast, accidents by drivers over 23 fell by 10% during the same period.
The company said a survey of 1,250 young drivers showed that 23% of young males had been behind the wheel while under the influence of drink.
Norwich Union added that Government statistics showed that drivers aged 17-19 were ten times more likely to have a drink-drive crash than other motorists, while 20-24 year olds were four times as likely.
The company said that as well as being tempted to drink and drive over the festive season, young motorists also faced other hazards such as driving more frequently than usual, being inexperienced in adapting to hazardous weather conditions and being distracted by passengers.
Sue Rowland of Norwich Union said: "The message to young drivers is clear: If you are driving during the holiday - or any time - make sure you don't drink.
"Also, if you are going out at night, when statistics show most accidents involving young drivers occur, why not select an alternate form of transport such as bus, taxi, Tube or train?
"So many accidents involving young drivers can be avoided. We strongly urge all young drivers to think about their chosen mode of transport over the holidays, and ensure that if they are driving, that they enjoy the celebrations without the alcohol."
