Scott Brooks, 18 from Southam, Warwickshire, was presented his prize by Quentin Willson during a ceremony at Peugeot's Headquarters in Coventry.
The competition was run by the Institute of Advanced Motorists, with sponsorship by Peugeot Motor Company PLC.
'Young Driver of the Year' is designed to encourage safe driving practices amongst young people and reduce casualty numbers within this group.
Every year about 1,000 young lives are lost on UK roads.
From the hundreds of competition entrants, 50 drivers were short-listed to attend a driving day in October at MIRA in North Warwickshire.
Skills tested ranged from parking to controlling a car on a wet handling area. The day also included an assessed drive by the Institute of Advanced Motorists and a driving theory test.
The top 12 drivers qualified for the competition final, and took part in another day of driving challenges which took place again at MIRA.
The standard of driving shown by the finalists was very impressive, however Scott Brooks just edged out the competition by demonstrating some very assured and confident driving.
Scott recently passed the Institute of Advanced Motorists (IAM) advanced driving test and is a member of the Stratford branch of the IAM.
Scott said: "It's been a great experience. I'd recommend all drivers to take some form of further or advanced driver training.
"I don't think you are ever too young or too old to learn more and become a safer and better driver."
