Peterborough-based young driver insurance provider, Marmalade has announced a new insurance solution in response to customer feedback and seeing the changes in young people’s driving habits.

The new Marmalade ‘Pay As You Go’ (PAYG) offering will allow drivers to pay specifically for the miles they use on a car where they are not the main named driver, making this its most cost effective policy for drivers covering less than 3,500 miles per year.

In order to track the miles driven, the policy will utilise Marmalade’s unique ‘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, CEO at Marmalade said:

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. Our customers want flexibility and an offering that is dynamic and can fit their needs without costing more than is necessary, something they may often find when being added as a named driver to ordinary policies on family cars.

It’s been well-documented over the years that annual mileage driven is on the decrease and this paired with a more eco-conscious generation means we are seeing young people drive only when necessary, often refraining from purchasing a vehicle of their own if they don’t have a dedicated use for it. Our own insights from customers show 74% have driven less than they would otherwise in 2020 while 47% expect to drive 4000 miles or less in total across the year.

 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 underwriters for the Marmalade Pay As You Go policy said:

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.