Car insurance for non-UK residents: What to know

What kind of regulations are in place when it comes to car insurance for non-UK residents? If you’re visiting the UK or you’ve only moved here recently, can you get car insurance with a foreign licence? Here, we unravel these (at times, quite complicated) questions, looking at the challenges they pose, and offering some useful solutions.

Let’s get started.

Can a non-resident get car insurance in the UK?

Yes, you can certainly get car insurance as a non-UK resident, though you might have to jump through a couple of hurdles. It's important to note that anyone driving a car in the UK must have valid insurance, regardless of whether you’re a resident, a temporary resident, or a visitor.

As a non-resident, you may find that you need a specialist provider or an experienced broker to help you get insurance, and that you pay a little more than you would with a UK licence. This is because UK insurers often consider foreign licence holders higher risk, since they don’t have access to the drivers’ driving history. But that doesn’t mean that getting car insurance is impossible.

There are a few scenarios in which you might drive a car in the UK, and each has slightly different implications when it comes to insurance.

If you’re driving a friend or family member’s car

If you’re visiting the UK for a short period of time and planning to drive a friend or family member’s car, your best option is to speak to an insurer about temporary car insurance. Temporary policies are usually valid for between one day and 90 days. You could also be added to your friend or relative’s policy as a named driver, though this might be slightly more complicated to arrange. It’s worth investigating both options to see which is easiest and the most affordable.

If you’re hiring a rental car

In the UK, almost all legitimate rental car companies arrange their own car insurance and include it in the price. You shouldn’t have to take out your own insurance at all. However, if you want to buy separate excess cover, which can be cheaper than the excess car companies offer, you can try to arrange this through a private insurance provider. They’ll ask you for detailed information before proceeding with your application to confirm whether you’re eligible or not.

If you’re driving a company car

Visiting the UK for work? If so, it’s your employer’s responsibility to make sure you have the right cover in place. This will fall under your company’s business car insurance. It’s possible that your company’s policy will exclude non-UK licence holders. If this is the case, you may need to get a UK licence in order to be covered. Direct any questions to your employer in the first instance — it’s their responsibility to help you.

If you’re driving your own car

If you’re travelling to the UK with your own, you should be covered by your existing insurance policy — at least for third-party insurance. Be sure to confirm this with your insurer in your home country before you depart, and make sure you have all the documentation you need before you cross the border into the UK.

Bear in mind that, if you decide to stay in the UK for longer than six months, you’ll have to register your car in the UK and tax it accordingly. This also applies if you come to the UK on several trips that add up to more than six months over a 12-month period. 

If you want to buy a car

Buying a car in the UK requires UK car insurance. For non-UK residents, this can be tricky, as insurers won’t consider your previous driving record in your own country. Again, a specialist insurer can usually help, but be prepared to submit quite a bit of paperwork and to pay more, too.

What are the challenges you’re likely to face as a non-UK resident?

As non-UK resident trying to secure car insurance, these are some of the biggest hurdles you’re likely to encounter:

• Proof of address: Many insurers require a UK address. As a non-resident, you’ll likely need to use the address where you’re currently staying, whether that’s a temporary address or the address of a friend or family member.

• Driving history: As we mentioned above, UK insurers typically prefer drivers with UK driving experience. Non-residents may face higher premiums because insurers have no sense of their driving history.

• Licence requirements: You'll need a valid licence that’s recognised in the UK. It’s important to note that this doesn’t have to be a UK licence. It’s legal to drive in the UK on an EU licence, and you can drive on a non-EU licence for up to 12 months. You can also choose to use an International Driving Permit. You can find more about driving in the UK on a non-UK licence here.

• No-claims bonus: Be warned that your no-claims bonus probably won’t be transferable. If you have a no-claims bonus from your home country, it’s unlikely that a UK insurer will recognise it.

• Documentation: You may need to provide additional documentation, such as proof of your intended length of stay in the UK.

• Payment methods: Some insurers may require a UK bank account for payments, which could be challenging if you’re a non-resident.

What are some solutions for car insurance for international drivers?

While these challenges can be difficult to navigate, there are ways you can work around them. Here are some possible routes you might consider taking to make securing car insurance a little bit easier:

• Change your foreign licence to a UK licence: This would depend on how long you’re planning to stay in the UK, but if you’re likely to be here for an extended period, it might help you secure and pay less for car insurance. 

• Seek out temporary insurance: For short-term visitors, temporary car insurance policies can be a good solution. While they might be a little pricey, they’re designed for non-residents and often have more flexible requirements.

• Providing additional documentation: You can improve your chances of securing insurance by offering extra proof of your driving history, such as official records from your home country or letters from previous insurers.

• Build up a UK credit history: If you're planning to stay in the UK for a longer period of time, building up a UK credit history can help reduce your premiums over time.
• Chat to a specialist insurer or an international insurance broker: Some companies specifically cater to non-UK residents and recent immigrants. These insurers understand your unique circumstances and may offer more suitable policies.

Quickfire summary

Securing car insurance as a non-UK resident can be a complicated process. You might need the help of a specialist insurer or broker, and you’ll likely end up paying more for your premiums. Not having a recognised driving history in the UK, as well as proof of address and a UK bank account, may be some of the biggest obstacles you’re likely to encounter.

But that doesn’t mean that it’s impossible. If you’re only staying in the UK for a short period of time, you should be able to take out temporary car insurance. And if you’re in the UK long term, getting a UK licence and building up a credit history will stand you in good stead.

If you need any further support, talk to the team at Howden. We’re here to help you find the car insurance that’s right for you. Contact us today.

Also read:

• Can you tax a car without insurance?
• Car tax checker: Check if your car is taxed
• Who is my car insured with? How to find out

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