Personal contract plan allows young driver to drive a new car at a reasonable price
Many young people are unable to afford a new car and begin their motoring life with an older car that doesn’t benefit from safety features such as air bags or ABS. The problem that many young people have is that they cannot afford the high car insurance premiums associated with newer vehicles. A new plan has been developed by a company called Marmalade; the plan combines an insurance deal with a personal contract plan. On the new plan Marmalade can supply a new car such as a Peugeot 107 or a Fiat Panda and will supply affordable insurance with the car.
A typical deal offered by the company on a Fiat Panda 1.1 over three years see the young driver paying an initial payment of £569.50 with 36 Monthly payments of £105.20 and an optional final payment of £2,336.00. The Fiat Panda is in car insurance group 1 to 3. If the young driver chooses to pay the full final payment then they will own the car outright. The mileage is however limited to 6,000 miles, which is half the national average.
The Young Marmalade insurance scheme, which costs £9.99 per year, including the basic comprehensive insurance premium for the first 100 miles per month over the first 12 months means that the driver really can save money. The scheme includes a pay per mile factor which operates between the hours of 11pm and 6 am, the hours during which most accidents involving young people occur. In a comparison the car insurance for young people was shown to be much cheaper than leading competitors.
The best advice for young people is to shop around for their cheap car insurance. There are great deals to be had and many older vehicles do come with safety features.