Car insurance for international students

The United Kingdom has long been a popular option for overseas students looking to study abroad. If you are currently living in the UK as a temporary student or planning on visiting, you may have considered purchasing a car for getting around your area or for trips away. Whether you are borrowing a car or buying one of your own for the duration of your stay, you will need to ensure that you have adequate cover in place.

This article will some of the key things you need to know about getting car insurance as an international student, the licensing requirements and how to pay less for cover.

What you need to know about car insurance in the UK

It’s a legal requirement to have car insurance in the UK, for international students and for all other drivers. Driving without car insurance could lead to a fine, points on your drivers licence, or even the removal of your licence altogether.

Can an international student get car insurance in the UK?

Yes – and you probably need to, unless you’re bringing a car from abroad that’s already insured in a country the UK has an agreement with.

Not all companies offer car insurance for international students or other non-UK residents: some will only accept people who have lived in the UK for at least three years; some providers only accept UK driving licences. Nevertheless, it will be absolutely possible to get car insurance: you’ll just need to make sure you look around to find the right provider offering the best deal.

Which car insurance should I choose?

The three main types of car insurance are:

Third party car insurance. This is the legal minimum level of cover in the UK and provides the least protection. This means you’re covered if you cause an accident resulting in damage or injury to any other person, vehicle, animal or property. It doesn’t cover any other costs like repair to your own car or medical bills if you sustain an injury.

Third party fire and theft. This type of policy offers the same level of cover as that offered by third party policies, but it also protects against loss or damage if your car is damaged by fire or stolen.

Fully comprehensive. If you’re looking for the greatest level of cover from your car insurance policy, you should consider fully comprehensive car insurance, also known as fully comp cover. This includes cover for damage to your own car as well as any damage suffered by others from a range of causes, including accident, fire and theft. This offers a more extensive level of protection than third party and third party fire and theft car insurance.

You are not legally required to get additional cover to third party insurance, but going without means that the slightest accident could cause severe financial stress. Scratching a more expensive car, clipping a petrol pump or any number of other minor incidents might blow your budget with a significant added cost.

This is because third party cover really only protects other people and their vehicle(s) if an accident is your fault: everything else is your responsibility. That’s why fully comprehensive car insurance is a popular option.

See how the different policies protect your needs:

With third party only cover, you:

• can make a claim for any damage or injury caused to other people and their vehicles when an accident is your fault
• can’t make a claim for any repairs needed for your car or for any injuries you sustain.

With third party fire and theft cover, you:

• can make a claim for any damage or injury caused to other people and their vehicles when an accident is your fault
• can make a claim to replace your car if it’s stolen
• can make a claim on damage from an attempted theft such as a smashed window and stolen car radio.
• can make a claim on an arson attack or fire damage to your car
• can’t make a claim for any repairs needed for your car or for any injuries you sustain.

With fully comp cover, you:

• can make a claim for any damage or injury caused to you and/or other people and their vehicles when an accident is your fault.
• can make a claim if it’s unclear who is to blame for an accident. For instance, if you return to your car after a day trip and see that someone else has obviously reversed into your car in the carpark and driven off.
• can rest easier knowing that you have an added level of protection and won’t have to shell out for expensive repairs, just the excess, if any, agreed on the policy when making a claim.

Can international students drive in the UK?

Finder’s insurance expert Ronny Lavie answers

As an overseas student with a valid driver’s licence issued from your own country, you can usually drive in the UK for up to 12 months. After that, you may need to exchange your licence or even take a driving test in the UK.

Whether you can use an overseas driver’s licence after the first year depends on which country you passed your test in. Further information can be found on the British Government’s services and information page.

• As an overseas student, your overseas driver’s licence must be current and valid. Any conditions that apply to your overseas licence will likely also apply in the UK.
• It’s advisable that you keep your driving licence with you at all times while driving.
• Your car must be registered with the UK Driver & Vehicle Licensing Agency (DVLA) and have up-to-date vehicle tax. You’ll also need to have a current MOT certificate, which is an annual safety check performed on vehicles.
• Finally, it’s your responsibility to make sure the car you drive is roadworthy and safe to drive.

Can you get car insurance as a student without a permanent UK address?

To get insurance in the UK, you’ll need to provide the address of where you’re staying while you’re in the UK.

Is car insurance cheaper if you are a student?

A lot of things in the UK can be cheaper if you’re a student, thanks to student discounts, but unfortunately car insurance is not one of them. In fact, for students as well as for other young drivers, it’s likely to be more expensive: see below for tips on how to pay less.

How much does student car insurance cost in the UK?

It depends first of all on the amount of cover you choose. To get a sense of the price difference, you can get a quote for third party only insurance and compare it to a comprehensive car insurance quote.

The cost of student car insurance, like any kind of insurance, varies depending on your personal circumstances. Insurers take a number of factors into account to try and predict how likely you are to make a claim, and therefore how much of a risk they think you are.

These are some of the elements that can make car insurance more expensive:

• Your gender. Men are statistically at higher risk of accidents, which is why women often pay less for car insurance than men.
• Your age. If you are under 25 years of age, you will pay more for car insurance. Once you turn 26, you can start getting cheaper insurance with lower premiums.
• Where you park the car. If your accommodation comes with undercover car parking, you can often pay less for car insurance than someone who has to park on the street.
• How much your car costs. More expensive cars cost more to insure.
• How much you drive. If you drive long distances every day, you will usually have to pay more for car insurance than someone who only drives short distances or not very often.
• Your driving record. Safe drivers, who don’t have a history of car accidents, are often able to pay less for car insurance.
• Where you are staying. If you live in a safe neighbourhood, you can often get lower prices than someone who lives in an area with a higher crime rate.
• Your car’s safety rating. All cars have a safety rating, and it may also have certain safety devices. Insurers will often use these to set prices, and they will give lower premiums for safer cars.

Your car insurance premiums are the regular, ongoing costs of having a policy, but they are not the only expense. It’s also important to consider the excess (sometimes called the “deductible”, especially if you’re from outside the UK).

• The excess is a fee that you need to pay when making a claim.
• There might be more than one excess on your policy.
• You are often able to choose your own basic excess. A higher excess will mean lower premiums, and vice versa. The choice is up to you, and how you want to balance the costs, but make sure you can afford to pay the excess should you be required to.

How to pay less for car insurance

There are a lot of different ways to reduce the cost of car insurance and make sure you have effective cover, although many of these are only available if you choose comprehensive cover.

• Get discounts for buying online, being a safe driver, good student and more.
• If you won’t be driving much, consider pay as you drive car insurance.
• Don’t make claims if you can avoid it, in order to grow a no-claims bonus discount.
• Consider taking out black box insurance to reduce the cost of your premiums.

Some insurers have specialist policies designed for students. While these are still likely to be a little more expensive for drivers under the age of 25, specialised policies offer more tailored cover, so you are less likely to pay for insurance elements you don’t need. Insurers with dedicated student policies might also have different levels of cover, so that you can choose the one that best suits both your requirements and your bank balance.

To find out how much you’ll be paying, get quotes from multiple insurers.

Bottom line

Whether you’re planning to drive to university or a placement each day, or you decide to take some time out of your studies to take a road trip around the UK, make it a priority to get the appropriate level of car insurance.

Taking in all the sights under your own steam is a great way to travel. And with careful research and shopping around, you could save money on a policy that offers protection for you and your wheels at a price that’s right for you.

Frequently asked questions

• Can I transfer my car insurance?

  Yes, you can switch your car insurance to another vehicle. To do this, just contact your insurance provider and get a quote. Bear in mind that your insurance cost may change depending on the type of car you’re switching to – if the premium increases, you’ll need to meet it.

• What about temporary insurance?

  If you’re not in the UK for long, or perhaps you’re nearing the end of your time studying abroad, then temporary insurance may be the way to go. This option allows you to get insured on a car for a shorter period than standard insurance permits, normally for any duration from an hour to 84 days.

  Note that, if you own your own car, you will need to be declared as off the road with the DVLA whenever you don’t have valid insurance for it, by getting a Statutory Off Road Notification (SORN). This is why temporary car insurance works best if you plan to borrow a car from a friend or relative to use while you are in the UK. The temporary policy sits alongside the named driver’s cover, but their no claims discount will not be affected should you need to claim.

  Another option you can consider is taking out pay-by-mile insurance, which means you only pay for the time you spend driving.

• Should I take my car to university?

  That’s entirely up to you, but you should consider which area or city you are going to be studying in to help you make the decision.

  Major cities, like London, Manchester and Edinburgh (for example), have well connected public transport systems that you can use to get to and from university. More rural areas have less options for getting around easily and you might be better off with your own car if your university is a little more remote.

  One thing to remember though is that the UK is a right-hand-drive country. If you drive a left-hand-drive car, this might make driving on Britain’s roads a little more difficult. That said, you are legally allowed to drive this type of vehicle in the UK.

• Can car insurance start immediately?

  Yes! When you purchase car insurance, it’s up to you when the policy is activated. You can choose to start it immediately, or you can choose a later date.

• Can you buy a car in the UK with an international driving licence?

  Yes, but in order to keep driving it you may need to get a UK driver’s licence within 12 months of arriving in the country.

• Does Brexit have any impact on international students driving in the UK?

  Currently, if you have a driving licence from an EU country, you’re still allowed to use it until it expires, whereas students from outside the UK would only be able to drive in the UK for 12 months before having to get a UK driving licence. But this may change in the future, so make sure you visit the UK government’s website for up-to-date information.

Who is most likely to be researching car insurance for international students?

Finder data suggests that men aged 18-24 are most likely to be researching this topic.