Marmalade reduces the average price of premiums for young drivers
UK drivers have seen a hike in premiums during the past year, but specialist provider of cars and insurance for young drivers Marmalade has bucked the trend. In the past 12 months, the insurer saw a fall in the average price of its premiums thanks to a combination of telematics and commitment to fair pricing.
The recent publication of the Car Price Insurance Index reveals that motorists are now paying 13.2% more than one year ago, the biggest annual rise recorded by the Index since 2011. And while the Index reveals that young drivers have benefitted from the lowest increases, Marmalade, which specialises in insurance for young drivers, has seen a decrease of 16% on the average premium compared to the previous year.
Marmalade’s average premium falls below the national average (recorded as £1,558 for young female drivers) and its customers are benefitting from further discounts when it comes to renewals. On average, Marmalade’s customers save 44% on the cost of their first year insurance when they renew, with some drivers saving up to 70%.
Crispin Moger, CEO of Marmalade, said: “We work hard to offer our customers a fair and transparent price for their insurance and telematics is a key factor in our ability to do so. Combined with education and a dedicated customer services team, telematics has enabled us to achieve a really good safety record. Our customers are four times less likely to have an accident compared to the national average, a figure that we’re working to reduce further.
“The Insurance Premium Tax hikes have had a negative impact on car insurance and we’re campaigning with the rest of the industry for the Government to address this issue. Young people need to be able to drive to improve their work prospects and give them freedom, and we are committed to delivering products that help them do just that.”
How does Marmalade’s telematics system work?
- Cars insured with a policy based on telematics have a black box installed under their dashboard.
- Before accepting the policy, Marmalade will spend at least 20 minutes explaining the technology and policy to the young driver.
- The black box records journeys focusing on the ABCS of driving:
- Average Speed
- Each journey will be scored red, amber or green based on the driver’s behaviour in relation to the above four factors.
- As soon as the ignition is switched off, the driver can log on to a password protected customer portal to view their journey and see how they have performed.
- If a journey is scored red, a member of Marmalade’s customer services team will contact the individual within 24 hours to discuss the issues, what caused the problems and how to avoid them again.