In short, it is a fairer way to pay for your car insurance based on your use of a car. If you’ve recently passed your test, you may not be driving all that much, so the idea of forking out over £1000 for insurance may not seem worth it. 

Pay as you drive car insurance allows you to only pay for miles you drive, which brings down the initial outlay and allows you to top up your miles as and when you need to. Marmalade’s pay as you go policy will cover you to drive a parent’s car and uses a smart black box and app to measure the miles driven.

It’s quite simple really. This is how Marmalade’s insurance by miles works:

• Step 1 - You buy the first 500 miles and will be asked to select the number of miles you want to top-up by, from between 100 and 500 miles. 
• Step 2 - We’ll send you a black box tag to fit to your car and pair with our pay as you go driving app to measure the miles you’re driving and your driving style.
• Step 3 - Your miles will top-up automatically when you have 50 miles remaining - so you’ll never run out of miles mid journey. The great news is, the safer you drive the less you’ll pay for your top up.
• Step 4 - We hope you’ll be paying as you drive with us for a while, but when you no longer need cover you can simply cancel the policy and receive pro-rata refund for unused miles since your last top-top, Simple!

It’s not just for young or new drivers, but it’s a popular option for them as it’s ideal for young people who are only doing short trips or who are only likely to use the car from time to time (if they’re away at uni for example). With Marmalade, pay as you go car insurance is exclusively available for drivers aged 17 - 27 who hold a full driving licence.

We think this is a perfect policy for 17 year olds and 18 year olds if they’re not quite ready to get their own car. It allows them to borrow a parent’s car as and when they need to - whether it’s popping out on short trips to a part-time job, visiting friends or for freedom during the holidays. The smart black box tag and smartphone app also helps the young driver develop and maintain their safe driving skills.

It’s definitely a good option for students as it’s budget friendly and offers the freedom to share a parent’s car in university or boarding school holidays, or occasional weekends. As Marmalade’s insurance by the mile has an auto-top up facility when you run out of miles, you can be safe in the knowledge you won’t run out of miles mid-trip.

That being said, it’s not the only option! If you’re not always going to be using a parent’s car temporary student car insurance allows you to arrange cover by the week, on a family car or friend’s car. This short term car insurance allows you arrange cover for one week to 6 weeks at a time.

There are 3 main types of pay as you drive car insurance:

Pay per mile car insurance

This type of policy allows you to buy miles and pay just for the miles you drive. Here at Marmalade, our pay per mile car insurance allows you to buy 500 miles to start off with and you top up as and when you need to. 

Pay as you go monthly car insurance

If you’re unsure about paying by the mile, choosing to pay monthly for your car insurance may suit you more. This may be good if you only want to get covered for a month every now and then, or just for a couple of months. Our monthly student driver insurance lets you do just this (if you're a student of course!)

Weekly car insurance

If you’re looking a student to drive for a week or so at a time every now and then, choosing a short term option by the week could be more suitable, so you can just pay for the time you need the car and not worry about how many miles you are using in that time. Our student driver insurance allows you to set the policy to start on a certain date and run for 1-6 weeks and that’s it, you're covered. You can then rinse and repeat as and when needed.

We think car insurance by the mile is a great option as it’s super flexible and, if you keep the policy running for a year, without a claim, you’ll earn your No Claims Bonus. Don’t take our word for it though, we’ve compared pay per mile insurance to short term insurance in a handy guide to help you decide what’s the best option for you?

Cover is comprehensive and includes the following:

• Legal liability for death or injury
• Damage to the car owner’s vehicle
• Personal accident up to £2,500
• Medical expenses up to £250
• Personal belongings up to £100
• No risk to the car owner's No Claims Discount

As pay as you go car insurance is based on mileage, this will all depend on how many miles you drive! We've worked out that if your driving less than 3,500 per year†, Pay as You Go Insurance is the best option, however if you think you're going to be driving more miles (up to 10,000) our annual insurance on a parent's car may be the better option. 

Why not get a quote in seconds by entering just a few details and compare the options for yourself!

Good question. If you're sharing a car with a parent, you're probably not racking up too many miles and this will vary from insurer to insurer. If you choose a policy with Marmalade our pay as you drive option is likely to be most cost effective if you are doing less than 3,500 miles per year. If you're likely to drive between 3,500 and 10,000 miles per year in a parent's car our annual Named Young Driver Insurance may be the best option - and the great news is that you can pay monthly at 0% interest to spread the cost. Win, win for your pocket - whichever you choose!

If you’re looking for flexibility and to ensure you’re only paying for the miles you drive, then we think this is a great option. If you’re still not sure, we can help guide you to the right product for you with our handy insurance finder, or you can read our 8 reasons to choose pay per mile car insurance article.