Can You Get Car Insurance with No Credit History in the UK?
Getting car insurance in the UK can be challenging if you have no credit history. Whether you’ve just moved to the country, are a young driver, or have never used credit before, insurers often use financial background checks to assess risk. But don’t worry — you can still get covered.
This guide explains how car insurance works for people without a credit record, which insurers are most flexible, and how to build your credit to unlock cheaper premiums in the future.
How Credit History Affects Car Insurance
When you apply for car insurance, many UK providers run a credit check if you choose to pay monthly. This helps them evaluate your ability to make regular payments. If you have no credit history, insurers can’t assess that risk easily — which may result in higher premiums or deposits.
However, this doesn’t mean you can’t get insured. It simply means you’ll need to be strategic about your payment options and insurer choice.
Who Has No Credit History?
People with no credit history typically include:
- Young drivers or students who have never taken credit
- New UK residents or expats without UK financial data
- Individuals who’ve avoided using credit cards or loans
- People who’ve been abroad for several years
In these cases, the insurer lacks financial information — not because of bad behaviour, but simply because you’re “credit invisible.”
Can You Get Car Insurance Without Credit?
Yes. You can still get car insurance even with no credit record. However, you may face two main limitations:
- Monthly payments: May require a higher deposit or be unavailable.
- Annual payment: Usually the best and most affordable option.
Most insurers are more concerned about your driving record and claims history than your credit file — especially if you pay annually.
Best Ways to Get Car Insurance with No Credit History
1. Choose an Insurer That Doesn’t Require a Credit Check
Some specialist or high-risk insurers don’t use credit checks at all. They focus on driving experience and vehicle details instead of financial background. These are often the best option for newcomers or young drivers.
Explore providers through our guide: Compare High-Risk Car Insurance UK.
2. Pay Annually to Avoid Finance Checks
Paying your insurance in one full payment avoids any credit check. This also saves you the interest applied to monthly instalments — typically between 10–20% APR.
If you can’t afford the full amount upfront, consider using a 0% interest credit card to spread the cost safely while still avoiding the insurer’s credit process.
3. Build Credit Gradually
Even a few months of consistent financial behaviour can make a big difference. Try:
- Registering to vote (electoral roll)
- Opening a UK bank account with small direct debits
- Using a credit builder card and paying it off monthly
- Paying mobile or utility bills in your name
Within 3–6 months, you’ll have enough credit data to unlock better insurance options.
4. Use a Specialist Broker
Insurance brokers that handle high-risk or unique driver profiles can connect you to insurers who manually review applications — meaning they’re more open to drivers without established credit.
5. Add a Second Driver with Good Credit
Including a parent, partner, or relative with good credit as a named driver can lower the perceived risk and reduce your premium. Make sure they genuinely use the car — “fronting” (listing someone else as the main driver) is illegal.
Will No Credit History Make My Premium Higher?
In some cases, yes — especially for monthly payments. Insurers may see the lack of credit data as uncertainty and increase premiums slightly to offset that risk.
However, if you pay annually, your lack of credit history often has no impact at all on your price. You’ll be treated the same as any other new customer.
Can You Build Credit Through Car Insurance?
Yes. Paying your monthly car insurance instalments on time contributes positively to your credit file. Over time, this can help you qualify for lower rates, not only on insurance but also for loans and mortgages.
Think of your first insurance policy as an opportunity to build credit while maintaining legal cover.
Tips for New Drivers with No Credit
- Start with smaller or lower-value cars (insurance group 1–10)
- Install a telematics device to prove safe driving habits
- Keep your address stable — frequent moves can affect risk scoring
- Compare renewal prices annually to find cheaper deals
Final Thoughts
No credit history doesn’t mean no car insurance. By paying annually, using specialist brokers, and gradually building your credit profile, you can secure affordable coverage in the UK — and even improve your financial standing at the same time.
To compare insurers that work with no credit or limited history, visit Compare High-Risk Car Insurance UK or explore our guide on Bad Credit Car Insurance UK.
Frequently Asked Questions
Can I get car insurance without a credit history in the UK?
Yes. Many insurers offer policies to drivers with no credit record, especially if you pay annually instead of monthly.
Do car insurers run credit checks in the UK?
Most do only if you choose monthly instalments. Paying upfront usually bypasses any credit checks.
Will my premium be higher if I have no credit score?
Possibly for monthly payments, but not for annual cover. Insurers mainly assess driving experience and claims history.
Can paying car insurance help me build credit?
Yes. On-time monthly payments can help create a positive credit record over time.