A motoring breakthrough for drivers aged 17 -25 years old
Added: (Sun Mar 26 2006)
Pressbox (Press Release) -
Young Marmalade helps 17-25 year old drivers out of a jam
Drivers can save �,000s in premiums
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In order to meet the high cost of insurance, young drivers and their parents are being forced to compromise and buy older, cheaper cars without the modern safety features such as ABS brakes, airbags and improved crash test ratings.
Statistics from the Department for Transport show that the number of young people aged 17 � 20 who hold a driving licence has fallen from 48% in 1992 to 26% in 2004. The increased cost of insurance is one of the reasons cited for the decline. (National Travel Survey: 2004, published July 2005)
Young Marmalade is aimed specifically at the 17-25 year old driver. By enlisting the help of an enlightened Lloyds of London insurer, three car manufacturers and the Bank of Scotland, Young Marmalade has put together a unique comprehensive insurance policy specifically linked to a limited range of new cars, all with modern safety features.
The Insurance
The cost of insurance is the one area that creates most problems for young drivers. Until now the alternatives have ranged from paying a huge premium to being included on their parents insurance, commonly known as �fronting�.
Traditional insurance policies are subject to regional variations; for example, a 17 year old in the Manchester postcode area, premium quotes range from �4,160 to �7,487 per annum.
Young Marmalade insurance premiums are: -
Age Male Female
17 � 700 � 300
18 � 700 � 300
19 � 500 Free
20 � 250 Free
21 � 25 Free Free
These are 9 month policies at the end of which the bonus for no claims will be 40%.
No regional variations and includes provisional licence holders
The New Car
Young Marmalade has carefully selected the vehicles by taking into account the cost, the insurance rating and the safety factors. Indeed, the brand new Fiat Grande Punto, which is including in the scheme, has the highest 5 star Euro-NCAP safety rating.
The range consists of vehicles supplied by Citroen, Fiat and Nissan. The following is an example of the monthly cost involved for one of the most popular models.
Fiat Panda 1.1 Active purchased on a Personal Contract Plan over 3 years
� Vehicle Price �6,275
� Initial Payment of �627.50
� Balance to finance �5,647.50
� 36 Monthly payments of �119.99 - 1st payment includes �95 acceptance fee
� Optional final payment of �2,406
� Typical APR 8.9%
� Total amount payable �7,353.03
� Contracted annual mileage of 6,000 miles
Finance is provided, subject to status, by Freeway Ltd, a Bank of Scotland Group Company, Bridge House, Queens Park Road, Handbridge, Chester CH88 3AN. Applicants must be over 18 and UK resident.
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�We often hear the comment �Well if I only buy a cheap car for my kids if they crash it does not matter quite so much�. We say a crash, is a crash and people can be injured or even killed in a crash.�
�If a parent buys a brand new car for their children, the car will be more reliable and have modern safety features. The drivers will take more care with a new car � it is human nature, and to avoid getting into trouble with their parents.�
�The whole object of Young Marmalade is to negotiate the first step of the insurance ladder. Once over this hurdle, premiums will start to come down to manageable levels. The insurance is limited to 5,000 miles over the first 9 months � this is to encourage youngsters to take it steady over this initial period and only extend their mileage once they have gained experience.�
�Part of the scheme includes the Pass Plus course, which follows on from the driving test and familiarizes the young driver with the more difficult driving situations such as fast roads and heavy urban traffic.�
Quotes from - Nigel Lacy, Managing Director
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****** Notes for Editors
The following websites will provide examples of insurance premiums.
www.quotezone.co.uk www.confused.com www.theaa.com
After the initial insurance period the statistics show that the level of accidents reduces by 43% for 17 year old drivers and 40% for 18 year old drivers, 38% for 19 year old drivers, right through to 25% for 25 year old drivers. Female drivers are 42% less likely to have accidents than their male counterparts.
After one year of driving, more insurance companies are prepared to quote, which adds a degree of competition to the market and forces the premiums down. Young Marmalade�s insurance company is, of course, in prime position to continue with the insurance after 9 months and will be very competitive.
By drawing the parents in, Young Marmalade takes the view that young drivers will be less likely to act irresponsibly in a brand new car rather than an old banger.
Equity Red Star provides insurance to the scheme.
The Cars
Citroen C2 1.1L
Fiat Panda 1.1 Active/Dynamic
Fiat Punto 1.2 Active
Fiat Grande Punto 1.2 Active/Dynamic
Nissan Micra 1.2 E/S (inc Automatic)
Photos are available for all cars
Photos of cars and young drivers areavailable
Every driver remembers their first car with affection and their first new car with pride. By combining these two emotions, the manufacturers are creating a brand loyalty. All vehicles are provided through the dealer networks and the prices include road fund licence and delivery charges � there are no hidden costs.
Part or all of the insurance cost is subsidised by Young Marmalade from the margin it has negotiated.
The Finance
Finance is provided by special arrangement with Bank of Scotland via their subsidiary Freeway Limited. Due to the nature of the scheme there are no discounts for cash purchases.
Website www.youngmarmalade.co.uk email info@carclubsuk.co.uk
Telephone 0845 223 9080
Insurance queries 0845 223 9070
Fax 0845 223 9065
Contact David Benedict
Email dave.benedict@youngmarmalade.co.uk
Young Marmalade is a trading style of Car Clubs UK Limited, authorised and regulated by the Financial Services Authority no 315120.
Full details of Young Marmalade, the insurance, the cars, the finance and the costs are available on our website at www.youngmarmalade.co.uk
**** Regional comparisons
Annual quotes obtained on line from Quotezone.co.uk
All quotes based on Fiat Punto Active 5Dr 2006 Cost �8,800Provisional licence holder - 17 years
Area Postcode
West London W12 Boy � 4,897 Girl � 2,244
Birmingham B1 Boy� 3,794 Girl � 2,695
Manchester M60 Boy� 4,160 Girl � 3,140
Bristol BS1 Boy� 2,869 Girl � 1,844
Leeds LS1 Boy � 2,977 Girl � 2,504
Plymouth PL1 Boy� 2,889 Girl � 1,641
Cambridge CB2 Boy� 2,351 Girl � 1,407
Glasgow G2 Boy� 3,187 Girl � 2,118
Southampton SO14 Boy� 3,090 Girl � 1,642
Young Marmalade � Boy 700 Girl � 300
Fixed price with no regional variations
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