Insurance provider Marmalade is offering young drivers pay as you go cover for up to 3,500 miles in cars for which they are not the main named driver.

The Peterborough based firm will use its smartphone App & Tag system to track miles and driving behaviours.

The policy is underwritten by Ageas and lets young drivers pay for an initial package of 500 miles and offers automatic top-ups of 100 to 500 miles when they have 50 miles remaining.

The additional miles will cost less for safer drivers who can earn a no claims discount for every year they remain claim free.

Crispin Moger, CEO at Marmalade, said: “We have built this new offering in response to the demand from young drivers who want the freedom of a car, but either can’t afford to pay for their own or simply can’t justify having their own vehicle.”

He added: “As a solution to the changing demand and in response to our findings, this policy allows drivers to be insured on the family vehicle and only pay for what they use. It’s completely independent to any existing insurance on the car and still qualifies the user to build up their own no claims discount helping them to get cheaper car insurance when they do reach a need for a full-time vehicle.”

Russell White, director of distribution at Ageas, commented: “This much needed pay as you go product offers young drivers an easy way to build their own no-claims bonus without the expense of owning their own car.”

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