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CASE STUDY

Marmalade

One car insurance company is tapping into the large market of young drivers by providing tailored insurance. Graham Wallace explains

There has been one exam topic that has dominated the conversation among my A-level students over the past year. One which frustrates, angers and excites students more than any other it seems. It is not an A-level exam, however. It is their driving test. This is a national test with an average pass rate of only 47%, according to the Driver and Vehicle Standards Agency (DVSA). A new generation of 17- and 18-year-olds across the country have been seeking to pass their driving test on top of preparing for their sixth-form studies and the numbers have built up considerably in recent months due to a backlog caused by the Covid-19 lockdowns. However, this is a group that is not being properly catered for and is being priced out of the market because of their youth.

It is estimated that young drivers aged 17–24 now spend £2,229 a year, on average, to be able to keep a car on the road. This makes the cost of car ownership unaffordable for many young motorists who are either in full-time education or starting out in the world of work. Even those who are financially supported by their parents will find this too expensive.

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