Pay As You Go Insurance allows young drivers to get covered for a set amount of miles on their parent’s car – if you don’t drive often, you’ll only pay for the miles you need.

Give me a quote for PAYG Insurance:

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This cover is suitable for:

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Full and provisional licence holders aged 17-27
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Driving a parent's or grandparent's car
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Occasional drivers – only pay for the miles you need
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This cover is not suitable for:

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Vans or commercial vehicles
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Insuring cars more than £30,000

Pay per mile car insurance

If you’re planning on driving a parent’s car but expect your mileage to be less 3,500 miles per year, Pay As You Go Car Insurance could be a good option for you – our smart black box tech allows new drivers and learners to pay for their insurance on a parent’s car by the mile.

You can start with 500 miles and choose from our set auto top-up amounts, which will be added to your total when you get down to 50 miles. All miles are valid for 12 months from the date of purchase or top-up and you can keep on top of how many you have left in our app.

Looking for insurance on your own car?

We’re not offering Pay As You Go Insurance on a young driver’s own car right now. We can still help you get on the road, check out our Annual Black Box Insurance which covers your own car.

No need to worry if you already have Pay As You Go Insurance on your own car with us, your miles are still valid. We’re on hand if you need us too.

Pay As You Go Car Insurance options

On a parent’s car

Start with 500 miles

  • dotComprehensive cover and no curfews
  • dotNo risk to car owner’s No Claims Discount
  • dotMiles remain valid for 12 months
  • dotEarn your own No Claims Discount for every claim-free year
  • dotInsuring a young driver on a parent's car

How does pay per mile car insurance work?

Get a quote
We cover most UK postcodes, including Northern Ireland. The price for the set mileage includes the cost of the black box, so there are no surprise fees!
Set your top-up miles
You purchase this policy at the set mileage. Then you can choose your top-up amount which is automatically added when you’re down to 50 miles remaining.
Fit the black box
We’ll send you an easy-to-fit black box within 2 working days (it’s called a “tag” as it’s so small) and a link to our app. When your tag arrives, install it and you’re good to go.

Why choose Pay As You Go Insurance?


Pay for the miles you need

If you don't drive often, paying by the mile could be a more suitable option than buying an annual policy
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Start earning your No Claims Discount

Miles are valid for 12 months, allowing you to earn a No Claims Discount for every claim-free year

Keep track of miles in the app

Keep an eye on miles used and remaining in our smart app - and earn badges and streaks for good driving

No risk to the car owner’s No Claims Discount

The car-owner’s No Claims Discount will remain unaffected, even if the young driver needs to make a claim

Who is Pay As You Go Car Insurance suitable for?

Pay As You Go Insurance is handy for young drivers who need the flexibility of getting behind the wheel of their parent’s car but plan to drive fewer than 3,500 miles per year.

On a parent's car

Start with 500 miles

  • dotComprehensive cover and no curfews
  • dotSuitable for drivers aged 17-27
  • dotNo risk to the car owner’s NCD
  • dotEarn No Claims Discount for every claim-free year

Frequently asked questions

Buying Insurancearrow
Is buying insurance as you go better than short-term cover on a parent’s car?

One size doesn’t fit all, so the best option for you will depend on your circumstances. We’ve shared some examples of how our cover may suit different needs, but we’d recommend you compare the options available to find the policy that best suits you.

If you’re borrowing a car as a one-off for a short period of time, then temporary car insurance may be more appropriate. However, if you’d like the flexibility to share a parent’s car on an ongoing basis (such as during the holidays or weekends) without having to stick to a set timeframe, a pay as you go policy may suit you better. Plus, you could earn a No Claims Discount if your policy runs for 12 months or more.

My Coverarrow
Can I drive straight away with Pay As You Go Car Insurance for young drivers?

We’re afraid not. You will need to fit your tag and pair it with the Marmalade Insurance app on your smartphone so that we can measure the number of miles used. We aim to get the box to you within a couple of days, so it won’t be long, and your policy will start as soon as the box and smartphone app pair successfully.

How do you know how many miles I have used?

Your tag and app will measure the miles driven as it will recognise when you are behind the wheel. Your miles remaining will show at the top of your dashboard on the driving app so you can keep an eye on it yourself.

Can I set up two Pay As You Go Insurance policies on one car?

If you already have a Pay As You Go policy on your own car with us, the good news is that you can add up to two additional drivers. If you’re taking a policy out to share a parent’s car, at the moment we can’t currently set up two Pay As You Go policies on a parent’s car. We’re working hard with our telematics provider and underwriter to find a solution, so watch this space!

How do you know the young person is driving the car?

The insured driver’s phone will pair with the tag via Bluetooth every time they drive, so we will know every time they are behind the wheel. However, if a trip is wrongly assigned, you can re-assign the trip in the app. Please be aware that dishonestly re-assigning your trips could result in cancellation of your insurance.

Are there any curfews or night-time driving restrictions?

None whatsoever, provided you are driving safely. Driving is about freedom after all, so whether you’re heading home from work or popping out for some late-night snacks, we’ve got you covered!

Am I insured to take my driving test?

Yes, you are insured to take the driving test in your car with our Pay As You Go insurance, and your cover will continue seamlessly once you have passed. Before you book your test, check your eligibility with the DVSA requirements.

These include making sure that the car is taxed and MOT’d, and that it has L-plates and an extra interior rear-view mirror. Don't forget to bring a copy of your insurance documents with you. Read more about the requirements in our guide to taking your driving test in your own car. When you pass, don’t forget to call us to let us know, and email us a copy of the front and back of your full licence when you receive it.

How do I top up my miles?

Sit back and relax as we’ll have it all in hand. Your miles will top-up automatically when you have 50 miles left. Payment will be taken from your card, and we’ll send you an email to confirm.

What happens if I run out of miles on my Pay As You Go Car Insurance?

The beauty of this policy is that you don’t need to stress about running out, as the policy will auto top-up when you have 50 miles left. But don’t worry, if you decide you don’t need the cover to continue, you can simply give us a call and we will cancel the policy, refunding any miles remaining since your last top up.

Why do I need to set up an automatic top-up for this policy?

As you are only covered for the miles you have purchased, we don’t want our customers to be in the position where they do not have insurance in force if they have forgotten to top up or run out of miles in the middle of a long journey. Our auto top-up facility ensures that you always have the miles you need to get from A to B.

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Annual Insurance

If you’re planning on driving your parent’s car regularly discover our annual option that covers you on a full or provisional licence!

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