Curfew scheme aims to limit insurance claims

A new scheme is offering cheaper insurance to young motorists who agree not to drive their vehicles between the hours of 23:00 and 05:00 GMT.

Motaquote, in partnership with RSA Insurance Group, is rolling out the i-kube device – which imposes an automatic £45 charge if the car is used during the curfew period – in a bid to reduce the number of claims.

The firm also hopes to see the number of accidents caused by young people fall as a result.

Commenting on the product, Association of British Drivers spokesperson Nigel Humphreys said it could help reduce premiums for other drivers – potentially creating improved access to cheap motorhome insurance.

However, he expressed doubt that the scheme would work.

Mr Humphreys added: "I would prefer to see this formalised. At what point does the young person, using this, stop? Presumably when they can find a cheaper deal somewhere else."

He added that if the scheme did not work, it would "push up the cost of normal insurance for young drivers".

Last week, Deloitte warned that motor insurance premiums could be set to rise in 2010 as cover providers attempt to reduce their losses.

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2009-12-09 16:42:21 © Moneyextra.com