In a world where neobanks have disrupted the insurance industry, Marshmallow is aiming to reshape the way we think about car insurance. Founded by identical twins Oliver and Alexander Kent-Braham along with David Goate, the firm claims it can make insurance fairer and cheaper.
The company says it uses data sourced from international markets, rather than the UK driver history that traditional insurers depend on, to price its policies more effectively. It’s been supported by Investec Plc’s Bernard Kantor in the past, and plans to expand overseas.
No Claims Discount
The No Claims Discount (NCD) is a great way to save money on car insurance. It’s a reward for drivers who have been claim-free for a certain number of years.
The NCD varies from insurer to insurer and can be as much as 30% for one claim-free year and 60% for five. It’s a good idea to check how the NCD works with each policy you are considering before you buy.
It’s also worth thinking about protecting your NCD, which can help to reduce the premium if you make a claim. Protected discount policies usually let you make two claims over a three to five-year period without affecting your NCD.
Marshmallow Insurance offers a range of benefits and features that can help to protect you should the worst happen. These include breakdown cover, third party, fire and theft cover and motor legal protection.
Breakdown cover helps to provide help if your car breaks down, and can include a wide range of benefits like roadside assistance. Your breakdown provider will send a mechanic to your location and try to repair the problem there and then, or will take you to a nearby garage for repairs.
There are many different types of breakdown cover on the market, each offering different levels of protection and flexibility to suit your needs. Usually, breakdown cover comes as part of your insurance policy or it can be sold separately as an add-on.
Alternatively, you may find breakdown cover as a perk from your bank or credit card company. Manufacturers might also include it as a freebie when you buy a new vehicle.
You can buy personal or vehicle breakdown cover, which will usually depend on the number of people/vehicles you want to be covered for. It’s a good idea to get a multi-car breakdown policy if you drive multiple vehicles regularly and need more coverage.
Third party cover
If you have a car insurance policy, then your insurer will cover you for damages or injuries to another driver’s vehicle. This is called Third Party Liability cover and it’s the minimum legal requirement to drive in the UK.
Marshmallow is a relatively new car insurance company that started off as an insurance specialist for foreign drivers in the UK, but now also provides comprehensive cover to UK-born drivers. Its approach is a bit like the fintech startups that have been rethinking insurance models and targeting customers with different needs.
Its pricing algorithms are based on a wider set of data points than those traditionally used to price insurance, meaning that it can offer cheaper policies for more people. It also has a unique online policy management system, which allows users to make changes to their policy for free.
Motor legal protection
Motor Legal Protection is an additional insurance cover that helps you recover losses from a non-fault accident where your car is not covered by any other insurer. This includes any loss of earnings, damage to personal possessions or any injuries you may have suffered as a result of the accident.
This type of cover can be added to Comprehensive Plus and Third Party Fire and Theft policies for an extra premium. It offers up to PS100,000 of legal costs cover and a free Legal Advice Helpline available 365 days a year.
Insurers will assess each case on merit, looking for a reasonable chance of success. If they feel there’s less than a 50% chance of your claim succeeding, they may refuse to fund the costs.