Peterborough-based young driver insurance provider, Marmalade has launched a new insurance solution, which offers a new and innovative insurance option for newly qualified drivers. The new Marmalade ‘Pay As You Go’ (PAYG) offering will allow newly qualified drivers to pay specifically for the miles they use on their car, making this Marmalade’s 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 new drivers under 30 years old to pay for an initial package of 1,000 miles, arranging an automatic top-up of 250 to 1,000 miles when they have 50 miles remaining. 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 policy option, Paul Baxter, MD at Marmalade, said:
“We have built this new offering in response to the demand from newly qualified drivers who want the option of driving and more importantly paying for the cover flexibly. We know that the majority of our customers want convenience at the forefront of their purchases and the option of pay-as-you-go for new drivers means that they have the flexibility to only pay for what they use.
“Our customers across the board want flexibility and an offering that is dynamic and can fit their needs without costing more than is necessary. 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.”
Adam Beckett, Chief Distribution Officer Ageas Insurance UK added:
“As one of the leading personal lines insurers we are always looking for ways to use our underwriting and pricing expertise to support our broker partners. We’re delighted that we’ve been able to use this expertise to support Marmalade with this new product that offers newly qualified drivers, who own their own car, a new way of insuring their vehicles.”