Shropshire companies who want to include young staff members on their motor insurance policies face tough choices.

Dave Williams, from Henshalls Insurance Brokers in Newport and Shrewsbury, said younger drivers, particularly anyone under 25, often struggled to get motor insurance at a reasonable cost.

"And unfortunately, if your company employs a person in this age group who needs access to one or more of your vehicles, you will face exactly the same problems."

Dave said insurers put all young drivers into the same category, assuming the worst, rather than looking at the 80 per cent of young drivers (according to research) who won't make a claim in their first year on the road.

"If you are considering putting someone under 25 on your company insurance, it's very likely that you'll see a real increase in your premium. The young person will also attract an additional excess, on top of your standard excess. This could be anything from £250 to £500, which means the financial considerations are very expensive for just one employee."

Dave said there were several alternative options that employers could look into - including using low-powered vehicles.

"If possible, don't give younger drivers access to powerful vehicles, and restrict any vehicle they do use to business use only, because if you allow them to use it for social, domestic and pleasure purposes, the premium will increase even further.

"Shop around too as some insurers penalise young drivers more than others. But don't just buy on price, and you must check exactly what the cover includes, particularly if you're buying online."

He said another option if the employee had their own car was to ask them to add "business use" to their policy, which would probably cost between £20 and £30, and offer to pay the difference, as well as paying their mileage.

"This may be a much more cost-effective way to move forward, and the risk of an accident will be your employee's responsibility, and not the company's."