Motor insurance provider Marmalade has launched a usage-based policy for newly qualified drivers. According to the Peterborough-based broker, this can be a cost-effective insurance option for drivers covering fewer than 3,500 miles per year.
The policy, which is underwritten by Ageas, uses Marmalade’s App & Tag system to track the number of miles driven. The system uses smartphone telematics technology to track distance and driving behaviour. Drivers can monitor their usage using the app, and they are eligible for a no claims discount for every year they remain claim-free.
New drivers under 30 years old can pick up an initial package of 1,000 miles and choose an automatic top-up package of between 250 and 1,000 miles, which will be applied when they have 50 miles remaining.
“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,” said Paul Baxter, managing director of Marmalade. “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.”
“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,” said Adam Beckett, chief distribution officer, Ageas Insurance UK. “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.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.