We know what you’re thinking. Car insurance is an annoying must-have that costs too much, especially for young drivers. We’re using technology to change that... something we’ll get onto later! 👀
But first, why does car insurance cost so much more for young drivers? The answer is: risk. The more risky a person seems to be on the road, the more their car insurance will cost.
Young drivers aged 17-25 are either learning to drive or are less experienced drivers. That means, on average, they’re more likely to have an accident and to claim on their insurance, making them a higher risk to cover. Underwriters - the people who assess the risk linked to a person’s car insurance policy - consider all that data (as well as other things) when setting the price of young drivers’ insurance.
What other things make car insurance more expensive?
💼 Your job
If you drive a lot for work, your policy price will be higher as you’re in your car more and that means you’re more likely to have an accident.
🏡 Where you live
Things like crime rates, local traffic, the average number of accidents in your area, etc., all affect your policy price.
🚗 The type of car you drive
If your car is less powerful (like the humble Renault Clio), you’re less likely to have an accident while driving it. And it’s less likely to be stolen, too (no offence Renault Clio drivers).
❌ Other people’s bad behaviour
Annoyingly, it’s not just you and your own driving that affects your policy price.
Lots of drivers make fraudulent claims, such as crashing deliberately to get cash (often called crash-for-cash) or pretending to have an injury that they don't have after an accident (often related to whiplash).
If fraudulent activity isn’t caught, car insurers have to pay out, and the average price of everyone’s insurance premiums goes up as a result.
How can young drivers save money on their car insurance?
Lots of insurance companies suggest getting black box car insurance. A black box is pretty much that; a little black box that gets installed into your car and monitors your driving through GPS technology.
But here at Marshmallow, we’re not a big fan of black boxes. They’re outdated (we’re a tech company after all!) and a hassle to install. Plus, some of them put curfews on drivers, penalising them for driving late at night which takes away the freedom that having a car brings.
How does Marshmallow help young drivers save money on their car insurance?
That’s where Marshmallow Miles comes in 👋
Marshmallow Miles is our app-based cover for 21-30 year olds that helps you save money by rewarding you for good driving. All you have to do is download our app, share some permissions and allow it to run in the background while you drive.
You save 5% off your premium just for signing up and, if you keep up your good driving for a year, you could save up to £100 at renewal!
By sharing your live driving on the Marshmallow app, we’re also able to help you quicker in an accident. That means we can get your claims process started much faster which helps save us money; savings that we pass right back to you.
*Marshmallow Miles is only available for drivers aged 21-30 without additional drivers. For more on Marshmallow Miles, including how to set it up in the app, read our FAQs here.
Isn’t Marshmallow Miles the same as black box insurance?
Not at all! For starters, it doesn’t need installing. All you have to do is open your Marshmallow app, share some permissions with us and take your phone with you on your drive (though please don’t use your phone when driving!)
And there’s no curfew. We won’t factor what time of day you're driving into your driving score like black boxes often do. We’ll only rate your driving based on speed, focus and smoothness.
Plus, by knowing your location and linking it to the app, it allows us to act faster and offer much more support if you're involved in an accident, such as helping emergency services locate you and your car.
And let’s not forget the tasty perks 😋
What perks are included with Marshmallow Miles?
If you sign up for Marshmallow Miles, you’ll get a 5% discount on your policy price straight away.
It’s also a bit of fun too. Pass challenges, rise through the driving ranks from Rookie to Magician, and get rewarded with treats delivered to your door! 🎉
Best of all, keep driving safely and you’ll save up to £100 at renewal!**
**There are a few terms and conditions, which you’ll find on your Marshmallow Miles policy wording.
So, to sum it all up…
Marshmallow Miles is now available on Compare the Market and will be coming to our website very soon. Keep your eyes peeled! 👀
It's the perfect car insurance for young drivers aged over 21, helping to lower the cost of their policy by rewarding great driving.