Cars for young drivers faqs
Here are some of the queries we're most commonly asked. If there is something you would like to know, then take a look through and see if we've answered it here.
How does it work?
Cars for Young Drivers is our unique (and rather clever) scheme to help young drivers like you, to get their own car and insurance and start building up a No Claims Bonus. We are the only UK Insurance company to offer 12 months free insurance with a new car for 17-24 year olds! Although the majority of applicants will receive free or discounted insurance, in some circumstances we will provide a contribution towards your deposit.
How does the insurance work?
The policy uses clever black box technology to monitor how you're driving and encourage you to be a safe and responsible driver. There's lots more information about our insurance here.
What is the difference between HP and PCP?
All these letters can be tricky to get your head around, so this is what they mean... PCP stands for Personal Contract Plan (or Purchase) and you can take this out for 2, 3 or 4 years. You'll pay a deposit and then make monthly payments. Then at the end of the agreement you can either make your final payment and own the car, hand the car back to the finance company or use it as a trade in for your next one. HP (or Hire Purchase) is done over a longer amount of time, from 3 to 5 years. At the end of the agreement there's no lump sum or final payment for you to make and the car belongs to you.
See, it all makes sense now!
What happens with my insurance after the first year?
We'll send you a renewal which we hope you think is a fair offer, but you don't have to take it and if you can find a more suitable policy somewhere else you can move your insurance (we'll miss you though!)
Will the car be taxed and MOT'd?
All our cars will be taxed for 12 months and because they're all lovely and new, they won't need an MOT until they are three years old.
Who covers maintenance costs on my car?
You'll have to cover all the service and maintenance costs on the car yourself.
What warranty is on the car?
Again, because our cars and shiny and new, they'll all come with a standard warranty offered by the manufacturer.
How much deposit do I have to pay?
Most customers choose a £500 deposit, but you can choose your deposit from £100 upwards. Remember that the higher the deposit the lower your monthly repayments will be and the more likely it will be that your finance application will be approved.
Can I use Cars for Young Drivers before I have passed my test?
Yes you can, the insurance can be used if you're a full or provisional licence holder and the premium won't even change when you pass your test.
Where do the cars come from?
We get our new cars from a manufacturer's main dealer. We work with a lot of selected manufacturers that may not always be on your doorstep. But don't worry, we can always arrange for a car to be delivered from the dealer to your home, with a cost of around £1 per mile. Of course, if you wanted to, you can always collect the car from the dealer yourself, it's up to you!
Do I have to do Pass Plus?
Not if you don't want to. It may help you with your driving, giving you a bit more coaching and experience, but it's not something we'll insist on and won't make any difference to your insurance premium.
Is the car delivered to me?
We can arrange delivery to you straight from the supplier at a cost of around £1 per mile. Or you're welcome to collect it yourself from the dealership.
How long will it take to get my car?
It varies depending on how easy it is to get hold of your car. If your car is a fairly standard make and model, and in a popular colour (like black, blue or silver) then we'll probably have something in stock and it can be ready in 3-6 weeks.
If we haven't got the car in stock that you're after (for example if you wanted extras above the normal specifications, or you wanted it in a less popular colour) we'd have to get the car built for you and this means it should be with you in up to 12 weeks.
The waiting time for the cars is because we need to either source your car or get it built. Then, we get it shipped, do all the necessary paperwork and make sure it's in tip top condition before we let you have it.
So, it really is worth the wait!
Can I pay the car off early?
If you want to, yes. The first thing you need to do is get in touch with your finance company and get what's called a settlement figure. Then once you've paid off all the outstanding finance of the car your monthly payments will stop and the car will be all yours.
Do I have to have a black box fitted?
Yes, but it is a good thing, honestly! You see, our insurance policy uses the black box technology to monitor how you're driving. We know that this helps encourage you to drive more safely and reduces the risk of you having an accident. This all means that we can offer really good deals on the insurance too.
How long do I have to have the box for?
As long as you're insured with us, the black box will be active in your car. If you stop having your insurance with us, the box will stay in the car (because you've bought it and it's yours), but we'll simply turn it off.
What if I can no longer afford the car or I don't need it or want it anymore?
You'd need to pay off all the outstanding finance and your finance company will give you a settlement figure. Once you've paid this off the car becomes yours and you're free to sell it.
Is there an age limit?
Cars for Young Drivers is only available to young drivers aged between 17 and 24.
What level of cover is provided by the insurance?
The insurance is a comprehensive policy, which means you are covered for damage caused to your vehicle, theft of your vehicle, windscreen damage and other things such as medical expenses following an accident.
Why can't I get Free Insurance with Marmalade?
Now, you know us, we're always trying to make things as easy and fair as possible for young drivers. And even though we're always working hard with insurance companies to make sure we can cover as many young people as we possibly can, there are certain postcodes and types of jobs (like professional sportsperson or musician) that we just can't cover. In these circumstances, we will offer discounted insurance or a contribution towards your deposit.
What is IPT?
IPT stands for Insurance Premium Tax. This is a tax that must be added to General Insurance premiums in the UK. All insurance quotes on our website are inclusive of IPT at the current rate set by the Government.
The current rate of IPT is 12%
Policies purchased prior to the Government changes on 1st June 2017 had the previous rate applied at purchase. Any mid-term changes that have incur a further charge, that take effect after this date will be charged at the new increased rate.