If you are new to the UK, you may hear a lot about credit scores and how important they are. From renting a flat to getting a mobile phone contract, your credit history often comes up.

It is natural to wonder whether your credit score affects your car insurance, and what that means if you have just arrived.

The short answer is yes, credit scores can play a role in car insurance in the UK, but not in the way many people expect.

What is a credit score in the UK?

A UK credit score is a number based on your financial history, such as whether you have paid bills on time, used credit cards responsibly, or missed payments. Lenders use it to assess risk when you apply for things like loans or credit agreements.

If you are new to the UK, you may not have a UK credit history at all. This is common for people who have recently moved, even if they had an excellent credit record in another country.

Does your credit score affect car insurance?

Unlike some other countries, UK insurers do not decide whether you are allowed to drive based on your credit score. Instead, credit information can be used as part of a wider risk assessment, particularly when it comes to how you pay your car insurance.

For example, if you choose to pay for your car insurance monthly, insurers may run a credit check because monthly payments are technically a form of borrowing.

A limited or poor credit history can sometimes make monthly car insurance payments more expensive or even unavailable.

If you pay annually, credit checks are often less relevant, although insurers may still consider broader financial data as part of their pricing models.

What if you have no UK credit history?

Having no UK credit score does not mean you cannot get car insurance. Many people moving to the UK are in the same position.

Some insurers struggle to assess drivers without a UK financial footprint, which can lead to higher prices or fewer options.

This is one of the reasons Marshmallow exists. We look beyond traditional credit scoring and focus on your driving experience and personal circumstances, rather than penalising you for being new to the country.

We can also help with car finance, and we take a similar approach with car finance and credit scores.

Can a credit score affect your quote?

Your credit score is not the main factor that determines the cost of your car insurance. Insurers care much more about things like:

• Your driving history and experience
• The type of car you drive
• Where you live and park your car
• How you use your car

Credit information, where used, is usually just one small part of a much bigger picture.

Does car insurance improve your credit score?

Car insurance itself does not usually build your credit score. However, if you pay monthly and keep up with payments, this can help demonstrate responsible financial behaviour over time.

If building a UK credit history is important to you, other things like registering on the electoral roll (if eligible), paying utility bills, or using a credit-building card may have more impact.

See how to improve your credit score.

Getting car insurance without credit worries

The good news is that a lack of UK credit history doesn’t need to stop you from getting insured. Marshmallow offers fully comprehensive car insurance designed for people who have moved to the UK from abroad.

Instead of relying heavily on UK credit scores, we focus on what really matters, helping you get on the road even if your UK credit file is brand new.

Get your free, no-obligation quote today.