Pity the poor, responsible, young driver. As far as motor insurers are concerned there is no such creature, especially if it happens to be male and below 27 years old.

One of the first motor manufacturers to address this problem has been Fiat Ireland, which earlier this year, in conjunction with PMPA and its own vehicle financing arm introduced a three-year purchase-cum-full comprehensive insurance plan for young drivers aged between 22 and 29.

The financing plan is one that most car dealers offer and involves paying relatively low monthly repayments for three years after which the driver has a choice: to pay the balance of a pre-established value (the "balloon") for the car and buy it outright; refinance the "balloon" or use the equity already built up to trade up to another new car and agreement. This year, Fiat has also included an option to hand back the car after the three years without any final balloon payment (subject to certain mileage and wear-and-tear conditions).

The key feature of this offer is that it includes full insurance for young drivers (including provisional drivers). According to Fiat Ireland's chief executive, Mr Christian Peruzzi, "the Fiat Young Driver scheme gives these people a new car with the peace-of-mind of a full warranty and fully comprehensive insurance at monthly rates usually seen only for a three- to four-year-old used car. Now almost everyone who is serious about having a new car, driving carefully and safely will be able to get on the road at really affordable prices."

The scheme applies to new Fiat Seicento S and SX versions and also new Fiat Punto 60S and SX versions.

One example of the financing costs shows that a female driver buying a Seicento S will pay £8,660 over the three years for the car/insurance. She will have to pay a £299 deposit and 36 monthly payments of £179 a month. The optional balloon will cost £3,400 at the end of the three years. The total cost of finance is £1,483 (APR 8.3 per cent.) By comparison, a higher risk male driver will pay £9,770 over the three years. His deposit is the same but his 36 monthly repayments will be higher - £199 rather than £179. His balloon payment will also be £3,400, but the cost of the finance is just £1,093 (5.58 per cent) which shows that his insurance premiums are that much higher a proportion of the overall cost than the equivalent package for a female driver.

For more information about this finance package, contact your local Fiat dealer.