A car insurance group has launched a new package cover which could help reduce young driver’s premiums.

The group revealed that young motorists could get cheaper insurance if they do not drive at night. The scheme is an attempt to cut down on claims.

The system works by a customer’s car being fitted with a GPS device so their car can be monitored and an automatic charge of £45 is imposed if they use their motors between 23.00 and 05.00 GMT. Therefore cover is reduced because there is less risk involved.

Nigel Humphreys, spokesperson for the Association of British Drivers, said: "If it reduces the number of claims it will help insurance premiums for other drivers."

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