Pay as you go car insurance

If you’re a new or learner driver looking to get insured on your parent’s car, you may be familiar with the pros and cons of doing so. The default option is usually for the parent to speak to their current insurer to try and add you onto their policy as a named driver. But this comes with a whole bunch of different risks such as losing their No Claims Discount if you end up making a claim, additional admin costs to add a new driver to the policy, not to mention the increased insurance costs just to add a young person as a named driver.

For these reasons, pay as you go car insurance tends to be more effective – both from a cost and convenience point of view. With pay as you go insurance, young drivers get their own policy. Because they only use the car some of the time, they have less miles and the cost is therefore cheaper than a normal policy. And your parent’s No Claims Discount isn’t affected – in fact, as a young driver with a full licensce and a year of cover with no breaks, you will earn your own No Claims Discount.

For these reasons, if you’re looking for regular cover on your parent’s vehicle, perhaps if you’re home for the holidays, or visiting friends during reading week, Marmalade think that pay as you go insurance is better than short-term cover on a parent’s car.

Get a quote

Spend a few minutes entering your details with Marmalade to get a quote. This price will include use of the app and insurance tag – so there are no surprise costs!

Choose your top-up miles

You’ll get 500 miles on your policy that are valid for 12 months. When you hit 450 miles, your account will automatically top up with your pre-selected top-up amount. You can choose between 100, 200, 300, 400 or 500 miles to top up with.

Fit your tag & download the app

You’ll receive your tag within two working days of taking your policy out. This is a tiny, easy-to-fit black box. You’ll need to install it using the instructions, download Marmalade’s app and you’re good to go.

Pay per mile insurance covers:

• Damage to the car owner’s vehicle.
• Legal liability for injury or death.
• Personal accident cover - up to £2,500.
• Medical expenses cover - up to £250.
• Personal belongings cover - up to £100.

Pay as you go insurance isn’t suitable for:

• Young drivers who need insurance on their own car. Check out young driver insurance for more suitable options.
• Insuring cars that cost more than £30,000.

As well as the main policy features, there are a number of perks that come with pay as you go car insurance!

• If you’re a learner driver, your price won’t go up when you pass your test.
• As a young driver with a full licence, you’ll earn a No Claims Bonus every year you don’t make a claim.
• Get insured on your parent’s car without risking their No Claims Bonus.
• Save money by only paying for the miles that you need.
• No curfews or night-time restrictions – come and go as you please.

You’ll need to wait until you receive your tag and pair it with the app to drive the car. The tag is sent out as soon as possible after you take out your insurance (usually within two working days). Your policy will start as soon as the tag and your app are paired.

It’s really hard to give an idea of how much pay as you drive insurance costs because there are so many different things that determine your final quote. These can include your age, whether you’re a new or learner driver and if you have any points on your licence.

Your best bet is to take a few minutes filling in your details to get an accurate quote based on your exact requirements.

Get a quote

There are so many different circumstances where new and learner drivers could benefit from pay per mile car insurance in the UK. It’s ideal for young people between the ages of 17 and 27 whose mileage is going to be relatively low and want to share their parent’s car. Here are some examples of how it could benefit different types of young drivers.

Learner drivers

Pay as you go learner insurance is ideal for learner drivers who are using their parent’s car. Rather your parents adding you onto their policy and risking their No Claims Bonus, you have your own policy, a select amount of miles which are only deducted when you drive the car and the price of your policy also won’t go up when you pass your test!

Student drivers

Many students don’t need cars when they head to university, so end up selling them before they make the big move. This can mean that when you return for reading weeks, holidays or just for the weekend, you’re either stuck without transport or relying on your parents to ferry you around.

Having pay as you go car insurance for students means that you hold your own policy, but on your parent’s car. You have a dedicated number of miles just for you. There’s no being on hold to insurers to add yourself onto your parent’s car insurance every time you go home. No paying for a full policy that you don’t need. And most importantly, no being stuck at home because you have no transport! All thanks to a 12-month policy with a select number of miles that you can use as and when you need.

Young drivers in general

Young drivers in general can benefit from PAYG insurance. Cars are expensive and many young drivers find themselves getting insured on their parent’s vehicles until they’ve saved enough money to buy their own.

As a parent, adding a young driver onto their car insurance policy can be risky. Not only will it likely be more expensive because of the risk involved insuring younger drivers with less driving experience, but if you were to have an accident, they could lose their No Claims Bonus. And naturally, having part-time use of a car means you’ll be driving less miles. That’s a lot to risk for someone who may only use the car on evenings and weekends only.

That’s why pay per mile car insurance in the UK is so handy. Instead of being insured on their policy, you have your own. You won’t risk losing their No Claims Bonus. As a driver who’s passed their test, you can build your own No Claims Bonus.

Pay as you go insurance for young drivers also caters for the fact that you’re probably not using the car on a full-time basis – meaning that rather than paying for a full policy, you’re getting cover on demand and paying for the miles that you need. It’s a win-win for everyone!

Other than your policy, there are two main components of your pay as you go insurance:

• Your tag (a small, easy-to-fit black box that’s fit to your car)
• Your smartphone app

Your tag and app are paired together. They’ll recognise when you’re driving and how many miles that you use. You can track your mileage in the app and as you drive, the miles are deducted.

The beauty of Marmalade’s pay as you go car insurance is that it does the hard work for you. So there’s no more waiting on hold and answering security questions to add miles to your parent’s policy.

You’re allocated 500 miles at the start of your insurance and will then select a top-up amount – you can choose between 100, 200, 300, 400 and 500. Then, when you’re 50 miles away from your 500-mile limit, your policy will automatically top up with the pre-selected amount. You’ll receive an email letting you know, and the payment will be taken from your card.

If you run out of miles and no longer need the cover, you can request the policy to be cancelled and get any remaining miles from your last top-up refunded.

Yes, Marmalade’s pay as you go car insurance policy will cover you to take your driving test and after you pass (at no extra cost!). Make sure you check your eligibility with DVSA conditions before you book your test. This will include requirements surrounding tax, MOT, L-plates, and additional interior mirrors (plus more!). You’ll also need to take a copy of your insurance documentation with you when you take your test.

Don’t forget to update your policy once you pass your test. You’ll also need to send Marmalade a copy of the front and back of your full licence.

You’ll need to set a top-up amount to make sure you never run out of cover and aren’t left uninsured. Imagine you forget your miles are due to run out in the middle of a long journey and you get pulled over, fined (or even worse!) for driving without insurance. That’s the exact kind of circumstance this feature is designed to protect you against.

Yes! As a young driver with a full licence, with every full policy year without a claim, you’ll get one years’ No Claims Discount! This is as long as there are no breaks in cover.

No, one of the perks of Marmalade’s pay as you go car insurance is that your parent’s No Claims Discount won’t be affected at all if you need to make a claim.

No! As long as you drive safely, there are no restrictions surrounding when you’re behind the wheel. So worry not, your late-night snack trips and parent-taxi duties can remain undisturbed!

Yes, your parent will need to be authorised to make changes to the policy and also to receive copies of all communications. This is because they are the car’s owner and there is a responsibility to keep them informed. It can also be easier for you, as both you and your parent will be able to do the admin work!