MARMALADE’S new  ‘Pay As You Go’ (PAYG) offering will allow drivers to pay specifically for the miles they use on a car where they are not the main named driver.

The company claims this is the  most cost effective policy for drivers covering less than 3,500 miles per year.

In order to track the miles driven, the policy will utilise Marmalade’s unique ‘App & Tag’ system, which uses specialist smartphone telematics technology to record the miles driven and track how users drive.

Underwritten by Ageas, the policy allows young drivers to pay for an initial package of 500 miles from £195, arranging an automatic top-up of 100 to 500 miles when they have 50 miles remaining, with the top-up costing less the safer the policyholder drives. Drivers can keep a track of what has been used on their app and earn a No Claims Discount for every year they remain claim free.