Sponsored by Marshmallow Insurance
There are numerous challenges that recent migrants to the UK face, but one that is frequently overlooked is the process of driving, obtaining a vehicle, and securing car insurance.
Understanding the costs associated with car insurance and the driving regulations in the UK can be bewildering if you were not raised in the country. Legally driving on the road requires registering a car with the Driver and Vehicle Licensing Agency (DVLA), paying road tax, undergoing Ministry of Transport (MOT) checks, and obtaining appropriate car insurance.
You also need a valid driver’s license. However, you do not need a UK driver’s license immediately. If you’re new to the UK, you can drive in the UK for 12 months on your current license before obtaining a UK one.
After 12 months, UK residents will need to exchange their license for a UK one to maintain their car insurance policy's validity. Only United Kingdom residents can exchange their foreign license for a British one. You’ll need a permanent address in Great Britain - so any address in England, Scotland, or Wales - where you’ve lived for at least 185 days before becoming eligible to make the change.
Read on for More on How to Exchange an International License for a British One.
When it comes to car insurance, the costs can come as a shock. Insurance companies have traditionally considered individuals moving from overseas as higher risks. Regardless of your driving record or safety record in your home country, most insurers only consider your driving experience once you are in the UK. Therefore, everyone is essentially treated as an unknown risk when assessing driving capabilities and insurance risks. Migrants and UK residents who have been in the country for only a few months or years suffer the most from this outdated insurance process.
Marshmallow takes into consideration a driver’s full driving history, quoting up to £300 less for those who've been in the UK less than three years, when compared to other insurers.*
A UK resident is defined as someone who lives in the UK or has moved here with the intention of permanent residence for at least 183 days a year.
If you are seeking car insurance as a recent migrant to the UK, or if you know someone who is, Marshmallow offers tailor-made fully comprehensive car insurance policies for migrants and UK residents. In 2023, 70% of those insured by them were new to the UK.
The real benefit over other car insurers is that they consider your entire driving history - not just your UK history - when pricing your policy, regardless of where in the world you lived before. This means they can offer you the same experience-based discounts as everyone else.
In fact, you could save up to a significant £300. Based on internal data for insurance policies sold via Price Comparison Websites in 2023, the average difference between Marshmallow pricing and the second cheapest price was up to £300 cheaper for migrants who are new to the UK.
Fully comprehensive car insurance from Marshmallow covers vehicle repairs or replacement after an accident, fire, or theft, personal injury costs, and personal belongings cover up to £250 on Marshmallow Original & Marshmallow Plus. Additionally, it provides third-party cover for driving in Europe, windscreen protection, and a courtesy car if yours is in for repairs, all as standard.
At Marshmallow, we consider all your driving history when we price your policy, wherever in the world you lived before.
