Marshmallow's comprehensive car insurance covers foreign drivers living in the UK. Find out what it includes and compare it against traditional insurance providers.
This relative newcomer began as a specialist in comprehensive cover for foreign drivers in the UK, but it’s now also covering UK-born drivers. In 2022, it won Finder’s Car Insurance Innovation Award. Here’s what else you need to know about Marshmallow.
Who is Marshmallow?
The UK-based insurtech firm Marshmallow started in 2017 and set out to insure “people that others don’t”. In this case, that meant comprehensive car insurance for expats or immigrants – foreign drivers living in the UK who were looking to settle down but might not have had a UK credit history or a UK licence.
Having expanded its offering, Marshmallow now also provides comprehensive cover to UK-born drivers aged 21-75, and it can cover some people with a provisional licence, as well as those with a full driving licence. Marshmallow doesn’t offer third party insurance and it doesn’t cover all of the UK, according to its site.
Who underwrites Marshmallow policies?
Policies are underwritten by Marshmallow Insurance Ltd, which is based in Gibraltar and authorised by the Gibraltar Financial Services Commission, not the UK’s Financial Conduct Authority (FCA), though it is on the FCA’s Financial Services Register and the FCA says customers may be able to use the Financial Ombudsman in the event of a dispute. Marshmallow’s site also says that if you have a complaint, you can use the Financial Ombudsman Service. Marshmallow Financial Services – which arranges the policies – is authorised and regulated by the FCA.
What are Marshmallow’s cover options?
Marshmallow only offers comprehensive car insurance cover, but it has 2 versions of this: a basic version, called Marshmallow Essential, and a premium one. Marshmallow Essential charges £25 for changes to your policy, and there’s no windscreen protection or cover for personal belongings or built-in entertainment systems, and no medical expenses cover or back-up after an accident.
The Marshmallow Original Plan – the higher tier – includes the following features:
If you make a claim on your Marshmallow car insurance, you will typically have to pay an excess of £250 for accidents, theft or damage on your car. Some drivers – young drivers, for example, might have a much higher excess, though. The excess for windscreen replacement claims is £115, and £25 for windscreen repair claims.
How do I make a claim?
Marshmallow doesn’t have a phone number for customer service queries, and this has led to some negative feedback in customer reviews. The claims line is open 24/7.
To make a general claim (for accidents, theft or vandalism), Marshmallow customers should call 0800 060 8622.
For breakdown claims (if you need roadside assistance or recovery), call 03300 413675 (provided by the AA).
For windscreen claims, call 01827 842584 (National Windscreens).
For motor legal claims, call 0333 043 3790.
If you’ve had an accident and wish to make a claim, Marshmallow recommends that you:
Remember safety first. Make sure you and anyone else involved are safe.
Collect information. You’ll need contact information of the people involved and detailed information about the accident.
Call Marshmallow. Call the appropriate number above to let Marshmallow know the details of what happened.
Customer reviews for Marshmallow car insurance
On customer review platform Trustpilot, Marshmallow has 4.6 out of 5 stars and a rating of “Excellent”, based on more than 9,200 reviews (last updated: March 2022).
Many positive reviews cite great customer service and low prices, but some complain about delays in getting a courtesy car, misunderstandings and errors that were difficult to sort out due to the company’s lack of phone support, and cancellation fees of up to £75.
Pros and cons
Pros
Potentially a good option if you don’t have much of a UK credit history or a UK driving licence
App and online live chat facility
View your policy details in your account
Cons
No customer service phone line
Cancellation fees of up to £75
Some policies underwritten by a company that’s not regulated in the UK
Only does comprehensive insurance
Our verdict
If you’re looking for comprehensive car insurance, Marshmallow includes some useful features as standard – but it’s worth knowing that the small print says that if the parts needed to repair the car aren’t immediately available to the approved repairer, Marshmallow reserves the right to withhold the provision of the courtesy car until the repair work can start. The cover is a particularly good option if you are new to the UK or don’t have a UK driving licence.
Marshmallow offers an app where you can access all the details of your account, and a live chat facility if you want to chat to its customer service team. But the company has no customer service phone line and so can only be contacted by live chat on its site (a 24/7 claims line is available).
If you’re after third party only or third party, fire and theft cover, Marshmallow doesn’t offer it (but comprehensive can work out cheaper than these so it’s always worth checking).
Yes. When you get a quote online, you can choose for your cover to start the same day. However, note that your policy can only start after you have passed Marshmallow’s ID check.
Yes, when taking out a policy, you can choose whether to pay for your cover in monthly instalments or in one lump sum for the year.
If you choose to pay monthly, your initial payment will be a little more than your regular direct debit, and you will have to pay an interest on your instalments, making the total price of your insurance higher than if you pay for it upfront.
You can cancel your policy by logging in to your online account and choosing the ‘Cancel my policy’ option.
Policies bought less than 14 days before cancellation can be cancelled for free. If you cancel after 14 days of buying your policy (not your policy start date), there will be a £50 cancellation fee.
No, but you can add this cover to your policy when you get a quote.
Note that, if you already have a quote without breakdown cover, you will have to obtain a new quote to add it in. The option to add it will appear after the payment method is selected (monthly vs. annual).
Once your policy is set up, breakdown cover cannot be added to it. If you require breakdown cover in this situation, you will have to get a separate policy through a provider that offers it as a stand alone (Marshmallow doesn’t currently have this option).
Marshmallow has no customer service phone number. If you have a query about your cover or account, you can contact the company via live chat on its website.
If you need to make a claim, you can call Marshmallow 24/7 on 0800 0608622. Breakdown, windscreen and motor legal have separate claim lines, as listed above.
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Liz Edwards has been a consumer writer and editor for more than 20 years. She led award-winning teams at the campaigning publisher Which?, and has covered a range of consumer rights and personal finance topics including pensions, credit, banking and insurance. Liz has appeared frequently in national media such as The Sun, Metro, HuffPost and The Independent. She loves to cut through waffle to give consumers the real lowdown. And she loves puns. See full bio
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