Marmalade’s free insurance makes new cars a very good deal for young drivers
Marmalade, a leading provider of cars and insurance for young drivers, is making the dream of driving a new car a reality for customers as young as 17 - and a more cost-effective option when adding up the likely monthly outgoings associated with a second-hand car.
Marmalade has compared the costs of financing and running a new Fiat 1.2 POP through its popular Fuel & Go scheme with a car of the same make, model and trim but three years old and with almost 25,000 miles on the clock1. The results reveal that running a new car through Fuel & Go is actually cheaper in the first years, saving young drivers £110.61 per month on the cost of running and financing a car during the critical first year (£223.88 compared to £334.492). A young driver can expect to pay a total of £12,609.62 over a period of four years to finance and run a Fiat 1.2 POP through Fuel & Go, compared to the cost over the same period for the older model at £13,756.59. For a detailed breakdown please see the accompanying figures.
Marmalade’s Fuel & Go is the only product to offer drivers as young as 17 a new car with 12 months’ free insurance3. Its customers also benefit from an initial low price thanks to Marmalade’s partnerships with leading manufacturers including Ford, Fiat, Vauxhall, Peugeot, Skoda and Citroen. New cars have a three year manufacturer’s warranty and the Fiat 1.2 POP includes free breakdown cover for the first year delivering further savings.
Alongside the immediate financial benefits, a new car through Fuel & Go enables young drivers to budget more effectively, reducing the need for a contingency budget to cover maintenance, as can be expected with a car in its fourth year. A new car also offers all the latest safety features and eradicates concerns about a car’s history.
Fuel & Go includes Marmalade’s New Driver Insurance, which is based on advanced telematics to help improve the safety of its young drivers. On a national basis, 1 in 5 young drivers is involved in an accident, with Marmalade’s customers this falls to 1 in 20 – a number which the insurer is constantly trying to improve through support and innovative new products.
Crispin Moger, CEO at Marmalade, said: “We want young people to be safe and putting them in new cars, complete with the latest safety features and manufacturer warranties, can be the best way to do so. We also know from experience that new cars engender real pride in young drivers and as a result they take much better care of their cars, driving carefully to avoid any bumps or scrapes and keeping the cars well maintained. Where potentially dangerous driving is picked up via our telematics systems, we work closely with customers to help them realise their mistakes and avoid them in the future. By providing support and the safest new cars, we are working to help young drivers stay safe on the roads – the most important thing that we can do.”
Fuel & Go customer, 18-year-old Danielle Cooney, said: “I was worried about having telematics at first because I wasn’t sure how strict or sensitive it was but it's definitely helping me become a better driver – better than I expected. It tracks my speed, acceleration, how I turn corners and also it has a tracking device so if I ever lose my car, this will come in handy.
“Since passing my test I don’t have to wait for buses anymore and it’s nice being able to do longer and later shifts at work because I can just drive home, so Marmalade’s lack of a curfew is a big bonus for me. I have already been on the motorway as I feel safe in my new car, it’s very cheap to run and it's so comfortable. I would live in my car if I could, I love it that much.”
1 Based on price of Fiat 1.2 POP 3 door start stop with 62 / 2012 reg plate, 24,685 miles on sale on the FIAT website, used cars section on 7th July 2015
2 The figures for Fuel & Go and New Driver Insurance were based on an 18 year old applicant with no previous claims or convictions on11.11.2015. As we can’t predict premiums two years in advance, we have carried the same premium for year two forward to years three and four.
3 Free insurance is available in the majority of UK postcodes. Repeated unsafe driving can lead to a premium increase during the term of the insurance but 9 out of 10 Marmalade drivers never have that problem