New hope for the bank of Mum and Dad
Marmalade has introduced a more affordable way for parents to get their children driving.
22% of young and learner drivers use a parent’s car as their main vehicle according to a recent survey conducted by Marmalade, the leading provider of telematics insurance. Many young drivers are opting to be a named driver on a parent’s policy, with almost one in five of the 1,800 respondents not having their own insurance. However this policy sharing puts parents’ hard-earned No Claims Discount at risk, a fact that could deter parents from handing over their keys.
This comes at a time when there is a 20% decrease in the number of under-25s learning to drive, and the cost of learning to drive is at an all-time high.
To help parents to get their kids get on the road, Marmalade has launched an innovative new policy that lets young people take out their own insurance on the family car, with no knock-on effect for the parents’ policy. What’s more, the new family driver policy enables the young driver to build up their own No Claims from the minute that they start to learn and it uses a telematics black box to encourage the young driver to drive safely.
Crispin Moger, CEO at Marmalade, said: “We are seeing that many families share cars and insurance policies, particularly for 17 and 18 year olds who want to drive but also plan to go away to university and so don’t need their own vehicle. The generosity of mum and dad can be strained when they try to add their teenager to their policy and find what a headache it can be, as well as the potentially costly risk to their No Claims Discount.
“This is why Marmalade has launched a new and innovative policy that allows young drivers to take out their own insurance policy on a parent’s car and start to build up a No Claims Discount. Our telematics-based policy can be taken out by those on a provisional or full licence. Critically there is no price increase once the driver has passed their test – which isn’t the norm in the industry. The policy does not affect the parent or guardian’s No Claims, and has the added peace of mind that black boxes statistically make much safer drivers, so there is a lower risk of the young driver causing injury or damage.”
Marmalade policy holders are three times safer than average. According to national statistics, one in five young drivers in the UK has an accident within the first six months of passing their test. With Marmalade, however, this figure is significantly lower at one in 16*.
Quentin Willson, motoring expert and parent of a Marmalade customer, said: “Sky-high insurance premiums have always been a barrier to young drivers and the insurance industry hasn’t exactly been innovative in bringing prices down. Marmalade’s new policy that protects parent’s No Claims Discount while giving novice drivers premiums as low as £1.87p a day or £683 a year is a real game-changer and gets my full support.”
*Based on Marmalade New Driver policies incepted Apr 2015 - Mar 2016. 1 in 16 Marmalade drivers have an accident within 6 months of their policy start date, compared with 1 in 5 young drivers who have an accident in the first 6 months after passing their test, according to National Statistics.