Bad Credit Car Insurance
Compare Bad Credit Car Insurance
You could save up to £535* on your car insurance in minutes.
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We do not provide advice or make recommendations. Your choice of provider is entirely your own.
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What Is Bad Credit Car Insurance?
Bad credit car insurance is standard car insurance sold to drivers whose credit history makes them more expensive to insure. There is no separate “bad credit” product; the policies, cover levels, and claims process are identical to any other car insurance.
What changes is the price. Insurers use your credit report to assess financial risk, and a poor history of missed payments, CCJs, or IVAs can push your premium up.
The FCA regulates how insurers use your data, but doesn’t prevent them from pricing based on credit.
The good news is that insurers weigh credit differently. One insurer might load your premium heavily for a missed payment, while another barely factors it in.
How To Compare Bad Credit Car Insurance Quotes At SimplyQuote.co.uk
You can compare quotes from 120+ UK insurers at SimplyQuote.co.uk using the car insurance comparison tool in four quick steps.
Enter your details
Provide your name, address, vehicle registration, and driving history. The form takes around five minutes and doesn’t ask for your credit score.
Compare your quotes
You’ll see prices from dozens of insurers side by side. Each insurer assesses credit risk differently, so the spread of quotes can be wider than for standard drivers.
Check policy details
Look beyond the headline price. Compare excess levels, add-ons, and whether the insurer offers monthly payments without a hard credit check.
Buy online
Select your policy and complete the purchase. If you’re paying monthly, check whether the insurer uses a soft or hard credit search.
How Does Your Credit Score Affect Car Insurance?
Insurers don’t see your credit score. They run a soft search on your credit report, which shows your payment history, outstanding debts, and any county court judgments or insolvency records.
What insurers actually see
Your credit score is a number calculated by credit reference agencies like Experian, Equifax, and TransUnion. Insurers don’t use that number directly.
Instead, they pull your credit report and apply their own scoring model. Two insurers can look at the same report and reach very different conclusions about your risk.
Soft search vs hard search
A soft search checks your credit report without leaving a visible mark. Most insurers use a soft search at the quote stage, so getting quotes won’t damage your credit.
A hard search leaves a footprint that other lenders can see. This usually only happens if you choose to pay monthly on a credit agreement.
What triggers higher premiums?
Missed payments, defaults, CCJs, IVAs, and bankruptcies all signal financial instability to insurers. The more recent the event, the bigger the impact on your premium.
If you have a CCJ or IVA, Citizens Advice offers free guidance on managing debt and understanding how it affects your finances.
How Much More Does Bad Credit Car Insurance Cost?
Drivers with poor credit often pay noticeably more for car insurance than those with a clean credit history. The exact uplift depends on the severity of your credit issues and the insurer you choose.
Estimated premium impact by credit issue
| Credit Issue | Typical Premium Uplift | How Long It Affects You |
| Missed payment (1-2) | 5% to 15% | Stays on report for 6 years |
| Multiple missed payments | 15% to 30% | 6 years from most recent |
| Default | 20% to 40% | 6 years from date of default |
| CCJ (County Court Judgment) | 30% to 50% | 6 years (or until satisfied) |
| IVA (Individual Voluntary Arrangement) | 30% to 50%+ | 6 years from start date |
| Bankruptcy | 40% to 60%+ | 6 years from discharge date |
| No credit history | 10% to 25% | Until you build a credit file |
These figures are estimates based on industry data. Your actual premium depends on all your risk factors combined, not just credit alone.
Why monthly payments cost even more
Paying annually avoids the interest that monthly instalments add, typically 20% to 30% APR on top of the annual price. With bad credit, some lenders charge even higher rates or refuse monthly terms altogether.
Related: How Much Does Car Insurance Cost In The UK?
*51% of consumers could save £535.17 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from May 2026 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
How To Get Cheaper Car Insurance With Bad Credit
Comparing quotes is the single most effective step, because insurers vary widely in how they price credit risk. Beyond that, several practical changes can bring your premium down.
Compare across as many insurers as possible
Some insurers weigh credit heavily; others barely factor it in. Specialist providers and those not on comparison sites may offer better rates for your profile.
Pay annually if you can
This avoids the interest on monthly payments and removes the need for a credit check on the finance agreement. If you can’t afford the full amount, some insurers offer interest-free instalments.
Choose a car in a lower insurance group
Cars in insurance groups 1 to 10 are cheapest to insure. If you’re buying your first car, picking a low-group model reduces your premium before credit even comes into play.
Build your no-claims discount
A strong no-claims bonus offsets the credit-related premium increase. Five or more claim-free years can earn a discount that outweighs the bad-credit loading.
Increase your voluntary excess
A higher voluntary excess reduces your premium. Set it at a level you could afford to pay if you needed to claim.
Consider a black box policy
A black box or telematics policy rewards safe driving with lower premiums, regardless of your credit history. This is especially useful for young drivers with limited credit.
Can You Improve Your Credit Score To Lower Premiums?
Yes. Improving your credit report reduces the risk insurers see, which should bring your premium down over time.
Register on the electoral roll
Being on the electoral roll confirms your identity and address. You can register to vote online in five minutes, and it’s one of the quickest ways to boost your credit file.
Pay bills on time
Set up direct debits for recurring bills so you don’t miss payments. Even one missed payment stays on your credit report for six years.
Reduce outstanding debt
Paying down credit card balances and loans shows insurers you’re managing your finances responsibly. Keeping your credit utilisation below 30% is a common benchmark.
Check your credit report for errors
Mistakes on your credit file can inflate your premium unnecessarily. You can check your report for free through Experian, Equifax, or TransUnion and dispute any errors. Soft search footprints from insurance quotes drop off your report within 12 to 24 months. They don’t affect your credit score.
What Happens If You’re Refused Car Insurance?
Being refused isn’t the end. Insurers decline applications for different reasons, and being turned down by one doesn’t mean every insurer will refuse you.
Try specialist providers
Some insurers specialise in higher-risk drivers, including those with poor credit, convictions, or gaps in cover. Check the car insurance companies page for a full list of UK providers.
Use an insurance broker
Brokers have access to underwriters that don’t appear on comparison sites. They can often place cover for drivers who’ve been declined elsewhere.
The British Insurance Brokers’ Association (BIBA) runs a free Find a Broker service that matches you directly with a specialist based on your specific credit situation.
Consider third party only
If comprehensive cover is too expensive, third party only meets the legal minimum and costs less. You can upgrade to third party, fire and theft or comprehensive when your credit improves.
Related: How Is Car Insurance Calculated?
Frequently Asked Questions
No, most insurers run a soft search at the quote stage, which doesn’t appear on your credit report and won’t affect your score.
Yes, some insurers may decline your application based on credit history, but many others will still offer cover. Comparing quotes is the best way to find one that accepts you.
No, some insurers don’t check credit at all for the policy itself. Credit checks are more common when you choose to pay monthly through a finance agreement.
Most negative entries stay on your credit report for six years. After that, they drop off and should no longer affect your premiums.
A County Court Judgment is issued when you fail to repay a debt on time. It stays on your credit report for six years and can increase your car insurance premium by 30% to 50%.
An Individual Voluntary Arrangement is a formal agreement to repay debts over time. It stays on your report for six years and can lead to higher premiums or limited payment options.
Yes, but monthly payments usually require a credit check and include interest. Some insurers offer no-credit-check monthly options, though these may come with higher APRs.
It can, if the payments are made by direct debit and reported to credit reference agencies. Consistent on-time payments build a positive payment history.
Yes, all three cover levels are available regardless of credit score. Comprehensive may even be cheaper than third party only in some cases.
CIFAS is the UK’s fraud prevention service. A CIFAS marker on your file can make it harder to get insurance or pay monthly, but it doesn’t automatically prevent you from getting cover.
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