Bad Credit Car Insurance
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Why Compare Bad Credit Car Insurance at SimplyQuote.co.uk?
Having a poor credit history can make car insurance more expensive, with premiums often 20-50% higher than those for drivers with good credit. Insurers view low credit scores as a risk factor, meaning fewer providers may offer coverage, and monthly payment plans often come with higher interest charges.
At SimplyQuote.co.uk, through our partnership with Quotezone, exploring insurance options is quick and hassle-free. The free online comparison tool allows you to compare policies from multiple insurers, including specialist providers that may offer competitive rates and flexible payment plans.
Since insurers assess credit risk differently, premiums can vary. Comparing policies helps ensure you find suitable cover at a competitive price. Start comparing quotes today to explore your options.
What Do You Need To Get A Quote?
Providing accurate details is essential when applying for car insurance with poor credit. Some insurers check credit scores, especially for monthly payment plans, while others focus only on your driving history and vehicle details.
Required details for a quote:
- Personal information – Full name, date of birth, address, and contact details.
- Vehicle details – Make, model, year of registration, estimated mileage, and security features.
- Driving history – Details of previous claims, penalty points, and disqualifications.
- Credit history (if required) – Some insurers check credit scores for financing options.
- No-claims discount (NCD) status – A higher NCD helps offset higher premiums.
- Policy preferences – Choose between Third-Party Only, Third-Party Fire & Theft, or Comprehensive cover.
Accurate details help secure the best possible quotes. Missing or incorrect information can lead to higher premiums or policy rejection, so double-check before applying.
Why Do You Need Car Insurance If You Have Bad Credit?
Car insurance is a legal requirement in the UK, regardless of your credit score. If you drive or keep a vehicle on public roads, you must have valid insurance or risk fines, licence points, or even a driving ban.
A poor credit score doesn’t prevent you from getting insured, but some insurers charge higher premiums or limit payment options. Specialist providers offer flexible payment plans and no-credit-check policies, helping drivers with bad credit stay legally covered.
Comparing insurers ensures you find the best deal, avoiding unnecessary penalties and securing a policy that fits your financial situation.
What Does Car Insurance For Poor Credit Cover?
Car insurance for drivers with poor credit offers the same protections as standard policies, covering accidents, theft, and third-party claims. Your coverage level depends on the policy type you choose.
Most policies include:
- Third-party liability – Covers damage to other vehicles, property, and injuries to others.
- Fire and theft protection – Pays out if your car is stolen or damaged by fire.
- Accidental damage – Covers repairs to your car after an accident (only with comprehensive cover).
- Legal expenses cover – Helps with legal fees if you need to claim compensation.
- Windscreen cover – Covers repairs or replacement of damaged windscreens.
What’s Not Covered?
While bad credit car insurance offers protection, some exclusions apply:
- Missed or late payments – Non-payment can lead to policy cancellation.
- Uninsured drivers – Unless you have uninsured driver protection, you may not be covered if hit by an uninsured driver.
- Incorrect vehicle use – Using your car for business purposes when covered only for personal use voids your policy.
- General wear and tear – Routine maintenance, breakdowns, and depreciation are not covered.
Choosing the right cover ensures you’re protected financially from unexpected incidents.
What Levels of Cover Are Available?
Car insurance for poor credit drivers offers the same coverage options as standard policies, allowing you to balance cost and protection.
Levels of Car Insurance:
- Third-Party Only (TPO) – The legal minimum cover in the UK. Covers damage to other vehicles, property, and injuries to others, but not your own car.
- Third-Party, Fire & Theft (TPFT) – Includes third-party cover plus protection if your car is stolen or damaged by fire. However, it won’t cover repairs to your car if you’re at fault in an accident.
- Comprehensive – The highest level of protection, covering third-party claims, fire, theft, and repairs to your car, even if you’re at fault. Some policies include extras like windscreen cover and legal protection.
The right level of cover depends on your budget, driving habits, and financial situation. Comparing insurers ensures you get the best value while maintaining the protection you need.
What Policy Add-On Extras Are Available?
Car insurance can be customised with optional extras, adding protection against unexpected costs. While some add-ons are included in Comprehensive policies, others require an additional fee.
Breakdown Cover
Provides roadside assistance and towing if your car breaks down.
No-Claims Discount (NCD) Protection
Prevents your NCD from being reduced after making a claim.
Courtesy Car Cover
Provides a temporary replacement vehicle while your car is being repaired.
Legal Expenses Cover
Covers legal fees if you need to claim compensation after a non-fault accident.
Windscreen Cover
Pays for repairs or replacement of damaged windscreens and windows.
Uninsured Driver Protection
Ensures you won’t lose your no-claims discount if hit by an uninsured driver.
Some insurers bundle extras into comprehensive policies, while others charge separately. Comparing policies helps you find the best value without paying for unnecessary add-ons.
How Much Does Bad Credit Car Insurance Cost?
Drivers with low credit scores typically pay 20% to 50% more for car insurance than those with good credit. On average, a driver with poor credit can expect to pay around £900 per year, compared to £600 for someone with a strong credit history.
Insurers see low credit as a financial risk, leading to higher premiums and limited payment options.
What Impacts the Price?
- Credit history – Missed payments, bankruptcies, IVAs or CCJs can lead to higher premiums.
- Vehicle type – Expensive or high-performance cars generally cost more to insure.
- Driving record – A history of claims or motoring offences increases premiums.
- Annual mileage – The more you drive, the higher the risk, affecting costs.
- No-Claims Discount (NCD) – A strong NCD can help offset higher costs caused by poor credit.
- Payment method – Paying monthly incurs interest, making insurance more expensive.
Bad credit doesn’t have to mean overpaying—comparing quotes from multiple insurers can help you secure a better deal and avoid unnecessary premium increases.
How To Get Cheaper Car Insurance with Bad Credit?
Having bad credit doesn’t mean you have to overpay for car insurance. By making smart choices, you can lower your premium while staying fully covered.
Ways to Reduce Car Insurance Costs with Poor Credit:
- Pay annually instead of monthly – Monthly payments often incur interest, increasing total costs.
- Improve your credit score – Making on-time payments and reducing debt can lower premiums over time.
- Increase your voluntary excess – A higher excess reduces premiums, but ensure it’s affordable if you claim.
- Choose a car in a lower insurance group – Smaller, lower-risk vehicles cost less to insure.
- Build a no-claims discount (NCD) – Accident-free driving earns discounts over time.
- Enhance vehicle security – Alarms, immobilisers, and trackers help lower theft risk and costs.
- Compare multiple insurers – Every insurer assesses bad credit differently, so shopping around is key to finding the best deal.
Even with a low credit score, insurers vary in how much they charge. Comparing quotes can help you find the most affordable policy without sacrificing cover.
How to Compare Car Insurance at SimplyQuote
Comparing car insurance is the best way to find an affordable policy, especially if you have bad credit. SimplyQuote.co.uk lets you quickly compare multiple insurers in one place, helping you secure the best deal.
Follow these steps to compare car insurance with bad credit:
Enter your details
Provide your personal information, vehicle details, and driving history.
Select your cover level
Choose between Third-Party Only, Third-Party Fire & Theft, or Comprehensive cover.
Check for flexible payment options
Some insurers offer monthly instalments without a credit check.
Review quotes and policy extras
Compare price, coverage, and add-ons like breakdown cover or legal protection.
Choose your policy and buy online
Select the best deal for your budget and driving needs.
With SimplyQuote.co.uk, you can find a policy tailored to your financial situation, even if your credit score isn’t perfect.
Frequently Asked Questions
Yes, drivers with poor credit often pay 20-50% more for car insurance. Insurers see low credit scores as a financial risk, which can lead to higher premiums or restricted payment options.
Yes, but monthly payments usually include interest, making the policy more expensive overall. Some insurers offer no-credit-check options, so comparing providers is essential.
Yes. Over time, a higher credit score can lead to lower premiums, especially if you switch to an insurer that factors in credit history.
Most insurers won’t refuse coverage based on credit alone, but they may increase premiums or limit monthly payment options.
No, your no-claims discount (NCD) is based on driving history, not credit score. A strong NCD can help offset higher costs caused by bad credit.
Yes. Some providers focus on high-risk drivers, offering flexible payment plans or no-credit-check policies. Comparing quotes can help you find the best option.
Some insurers apply higher rates across all policies, while others only consider credit for payment plans. It varies by provider.
Paying annually instead of monthly, choosing a lower-risk car, and improving your credit score can help. Most importantly, comparing multiple insurers is key to finding a competitive rate.
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Written by Chris Richards
Page last reviewed on 6th March 2025 by Chris Richards