A new pay-as-you-go offering for young drivers from Marmalade will allow policyholders to pay specifically for the miles they use on a car where they are not the main named driver, making this the specialist provider’s most cost-effective solution for drivers covering less than 3,500 miles per year.
In order to track the miles driven, the policy will utilise Marmalade’s App & Tag system, which uses specialist smartphone telematics technology to record the miles driven and track how users drive.
Underwritten by Ageas, the policy allows young drivers to pay for an initial package of 500 miles from £195, arranging an automatic top-up of 100 to 500 miles when they have 50 miles remaining, with the top-up costing less the safer the policyholder drives.
Drivers can keep a track of what has been used on their app and earn a no claims discount for every year they remain claim free.
Commenting on the release of the new pay-as-you-go policy, Crispin Moger, chief executive officer at Marmalade, says: “We have built this new offering in response to the demand from young drivers who want the freedom of a car, but either can’t afford to pay for their own or simply can’t justify having their own vehicle.”
He continues: “As a solution to the changing demand and in response to our findings, this policy allows drivers to be insured on the family vehicle and only pay for what they use, it’s completely independent to any existing insurance on the car and still qualifies the user to build up their own no claims discount helping them to get cheaper car insurance when they do reach a need for a full-time vehicle.”
Russell White, director of distribution at Ageas, the underwriter for the Marmalade policy, adds: “This much needed pay-as-you-go product offers young drivers an easy way to build their own no-claims bonus without the expense of owning their own car.”
“I’m confident this new product will enjoy the same success as the other products we have developed in conjunction with Marmalade. Using Marmalade’s customer insight on changing needs, and cutting-edge black box technology, we have been delighted to work together to provide an innovative new solution that meets changing driving and insurance buying trends.”
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