Cheaper insurance for young motorists who adhere to a driving curfew is being offered by an insurance firm.
Hibernian Group, the largest insurance company in the Irish market, has offered young drivers discounts of up to 30 per cent if they sign up for skill training and do not use their cars after 11 p.m. The company described the initiative, launched yesterday, as "a leap of faith".
Inexperienced drivers who successfully complete a one-day driving skills course will be rewarded with a premium discount of 20 per cent. They will be offered a further 10 per cent discount if they agree not to drive between 11 p.m. and 6 a.m. If they have an accident during these hours, Hibernian will meet the cost of any third party claim which arises but may pursue the driver for the costs. The scheme is free and voluntary and will initially be open to 5,000 people.
The savings could be considerable, according to Hibernian, which predicts a 23-year-old male driver would see the premium on his 1,100cc car fall from £2,673 to £1,871.
Women drivers will get smaller gains, with the premium paid by a 21-year-old woman driver of a 1,400cc car being reduced from £1,873 to £1,311.
Hibernian is the second major insurer in recent weeks to try to improve the safety record of young drivers. Last week, Axa Ireland introduced the Traksure scheme for 500 drivers aged between 20 and 24.
Participants in Traksure must pay £950 for the installation of a satellite tracking device in their car in return for a 45 per cent reduction in premiums. Drivers must agree to observe the speed limit at all times and Axa will use communications technology to monitor and enforce the scheme.
The Hibernian course will be run in association with the Institute of Advanced Motorists (IAM), a not-for-profit organisation which provides driver training programmes in the UK.
The Motor Insurance Justice Action Group (MIJAG) broadly welcomed the announcement by Hibernian. Mr Mick Murphy, of MIJAG, said the move was clear recognition that young drivers were being ripped off.
"We still believe the Government needs to step in and lay down the law to link insurance premiums to a person's safety record as opposed to their age," he said.
Hibernian is the Republic's largest general insurer with 500,000 existing customers. It has had little participation in the young driver market to date.
Candidates for the pilot scheme, called Ignition, must have held a full licence for not less than five years. Priority will be given to customers who have been with Hibernian for at least three years and the children of Hibernian customers.
Participants must have no convictions and no more than one claim in the last three years. They must either own a car or plan to purchase one in the next six months. Ignition is open to the owners of cars with engines up to 1,400cc.
The one-day driver training course will consist of an interactive classroom and video session in the morning, followed by practical driving training.
Hibernian will review the level of discount on the Ignition scheme. IAM estimates that drivers who complete its course are 20 per cent less likely to be involved in accidents.