An Irish insurance company is promising discounts of up to 40% for young drivers that commit to not driving on Friday and Saturday evenings, the worst times for crashes involving young people
The move comes after a report from the Republic’s Financial Regulator found insurers were making huge profits on young drivers.
The report revealed insurance companies are making profits of €1,172 (£954) on average on some young drivers compared with €290 (£236) for other drivers.
XS Direct claims it will knock as much as €1,000 off the cost of insuring young drivers if they keep the terms of a weekend curfew.
Drivers under the age of 25 accounted for 37% of road deaths in 2006, and 25% of injuries.
This is despite younger people representing less than 10% of all policyholders, according to Road Safety Authority figures.
Chris McCann of XS Direct said: “Friday and Saturday nights account for almost 20% of these accidents.
“It is these night time accidents that drive up the premiums paid by all younger drivers, regardless of their driving habits or when they drive.”
The new insurance policy, called Pumpkin, involves fitting a tracking device to the car, which alerts the insurance company if the car is driven on weekend nights.
If the young driver breaks the curfew they will be charged €50. Even if they break the curfew insurance cover will be in place and third party claims covered.
Drivers also have to accept a high excess, the amount that must be paid by the consumer before a payout is made.