Fiat has revealed its new i-Deal package offering young drivers a new 500 model, insurance and servicing for £239 per month.

For almost three quarters of young drivers, the costs associated with car insurance means that the selection of cars they can afford to run is usually limited.

For 35% of 17-25 year olds the costs are so high that they choose not to own a car at all, while the majority that do take the plunge end up spending up to 30% of their income owning a car.

The new Fiat 500 i-Deal package, powered by Carrot, enables drivers as young as 18 years of age to get behind the wheel of a brand new Fiat 500 1.2 for a fixed monthly payment of just £239 per month over a three-year period, complete with Easy Care Servicing Maintenance and fully-comprehensive insurance cover from Carrot, underwritten by Zurich Insurance.

All vehicles will be equipped with an i-box, designed and built in the UK by Crewe-based telematics service provider Trak Global, which will allow young drivers to gain valuable experience behind the wheel with Carrot’s cash rewards programme as they are incentivised and encouraged to form safer driving habits from the first turn of the wheel.

Product director at Carrot Insurance Ed Rochfort said: "We’re excited that this fantastic product is coming to market, and that the partnership we’ve formed with Fiat has come to fruition. Forging deeper links with the automotive industry is a key part of our wider business strategy moving forward, as we recognise that the convergence between manufacturers and the provision of insurance will continue to gather pace.”

Commercial director for Fiat Chrysler UK Karl Howkins said: “Having thoroughly researched the market, we determined that Carrot's approach to insuring young drivers would be best suited for the iconic Fiat 500 and we’re delighted they are supporting our plans for i-Deal in tandem with their partner, Zurich Insurance. This all-inclusive insurance package deal will make the dream of driving a brand new Fiat 500 a reality for many young drivers who would otherwise be forced to drive an older and potentially less reliable and safe vehicle.”

To find out more about the package visit here.