New car insurance scheme welcomed

A drivers' group has welcomed the introduction of new car insurance schemes that restrict driving hours for young motorists.

The Association of British Drivers predicts that the new plan by Young Marmalade - which discourages 17 to 25-year-old customers from driving between the hours of 23:00 and 5:00 - could prove popular in future.

Young Marmalade would fit a GPS device to the car that automatically charges £45 for every broken time restriction.

However, the effectiveness of the system might be compromised if high-risk motorists do not take out the policies, the group's spokesman Nigel Humphreys said.

It has been expected that the new scheme would improve safety and reduce the number of car insurance claims.

The latest data show that car insurance costs have risen by 14% over the past year, across all age groups - meaning the average quoted premium for an annual comprehensive car insurance policy stands at £821.

Mr Humphreys said: "I think it's something that young people are going to go for. I would prefer to see this formalised.

"However, people who would take it up are probably the people who wouldn't have any accidents anyway. That's the danger of these things."

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