Over 110 car insurance providers
Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
How Does a CCJ Affect Your Car Insurance?
A County Court Judgement (CCJ) makes finding affordable car insurance harder, but you can still get cover. Insurers use credit checks during underwriting, and a CCJ signals financial difficulty. This increases their perceived risk of missed payments or claims issues, resulting in higher premiums.
The impact on your premium depends on:
- The value of the CCJ (larger amounts increase premiums more)
- How recent it is (recent CCJs carry more weight)
- Whether it has been satisfied (paid CCJs are viewed more favourably)
- Your overall credit history (multiple CCJs or defaults compound the effect)
Some mainstream insurers refuse cover if you have an unsatisfied CCJ. Specialist providers are more willing to accept customers with adverse credit, though usually at higher premiums.
Does a CCJ Affect Car Insurance Permanently?
A CCJ remains on your credit file for six years from the judgement date, whether satisfied or not. During this period, it will influence your insurance premium. Once removed, insurers will no longer see it during credit checks, and your premiums should improve if your overall credit profile has recovered.
Finding the Best Car Insurance with a CCJ
Securing cover with a CCJ requires comparison and honesty. Not all insurers assess CCJs the same way, so obtaining multiple quotes is essential.
Specialist Insurers
Several insurers focus on drivers with adverse credit histories. They assess risk differently and may offer more accessible premiums than mainstream companies. While not always the cheapest, they provide options when others decline.
Use Comparison Sites
Comparison tools let you see which insurers will offer cover and at what price. Declare your CCJ accurately. Failing to disclose it can invalidate your policy when you need to claim. Some comparison sites filter results based on your circumstances, saving time.
Pay Annually If Possible
Paying your premium upfront typically costs less. Monthly payment plans involve credit checks and interest, which are harder to secure with a CCJ and increase the total cost. If you can afford the annual payment, you will save money.
Can You Get Car Finance with a CCJ?
While this article focuses on insurance, many drivers with CCJs also wonder about car finance. A CCJ makes securing finance more difficult and expensive. Lenders view you as higher risk, leading to higher interest rates or outright refusal.
Specialist lenders exist for people with poor credit, but expect to pay significantly more in interest. Improving your credit score before applying for finance will give you better terms. Paying off your CCJ and demonstrating financial responsibility over time will gradually improve your options.
How to Lower Your Premium with a CCJ
While a CCJ increases costs, several strategies can help reduce the impact.
Satisfy Your CCJ
Pay off your CCJ as soon as possible. Once satisfied, it remains on your credit file for six years but is marked as settled, which insurers prefer. If you pay within one month of the judgement date, you can apply to have it removed from the Register of Judgements entirely.
Build a No Claims Discount
A strong no claims history shows you are a responsible driver, offsetting some negative impact of a CCJ. If you do not have one, build it with a cheaper policy first. Named driver experience on someone else’s policy may help but is not always transferable.
Reduce Your Mileage
Lower annual mileage reduces your premium. If you drive infrequently, ensure your estimated mileage is accurate and realistic. Overstating or understating mileage can cause problems if you claim.
Increase Voluntary Excess
Offering a higher voluntary excess lowers your premium by reducing the insurer’s potential payout. Ensure the total excess (compulsory plus voluntary) is affordable if you need to claim.
Choose Your Car Carefully
Insurance groups range from 1 to 50, with lower groups being cheaper. If buying a vehicle, choose one in a lower insurance group to reduce your premium significantly. Avoid high-performance or modified vehicles, which cost more to insure regardless of your credit history.
Similar to how drivers with points on their licence face higher premiums, CCJs require careful vehicle selection to manage costs.
Improve Your Credit Score Over Time
While a CCJ stays on your file for six years, you can rebuild your credit score by:
- Registering on the electoral roll at your current address
- Paying bills and credit commitments on time
- Keeping credit utilisation low
- Avoiding multiple credit applications in a short period
As your credit score improves, insurers may offer more competitive rates at renewal.
Additional Factors That Affect Your Premium with Bad Credit
Beyond your CCJ, insurers consider multiple factors when calculating premiums:
- Driving history: Points on your licence or previous claims increase costs
- Age and experience: Younger or less experienced drivers pay more
- Location: High-crime or high-accident areas result in higher premiums
- Occupation: Certain jobs are considered higher risk
- Vehicle security: Installing an alarm or tracker can reduce your premium
What to Check Before Buying
Before committing to a policy, review the following:
- Disclosure requirements: Ensure you have accurately declared your CCJ and any other relevant information
- Policy excess: Confirm the total excess is affordable if you claim
- Cover level: Decide whether third party, third party fire and theft, or comprehensive cover suits your needs
- Payment terms: Understand whether you are paying annually or monthly and what interest or fees apply
- Cancellation terms: Check the insurer’s cancellation policy and any fees
- Renewal terms: Some policies increase significantly at renewal, so factor this into your decision
Can You Be Refused Car Insurance Due to a CCJ?
While some insurers refuse cover if you have an unsatisfied CCJ, you cannot be entirely denied access to insurance. Specialist insurers exist specifically to cover drivers with adverse credit, convictions, or other risk factors. The key is comparing multiple providers and being prepared for higher premiums initially.
Getting a Quote with a CCJ
A CCJ does not mean extortionate premiums indefinitely. Satisfying the judgement and demonstrating financial responsibility over time will gradually improve your options. Always declare your CCJ honestly, even if it feels uncomfortable. Non-disclosure can lead to your policy being voided when you need it most.
Ready to compare quotes? Use the button on screen to see what cover is available to you. Being upfront about your circumstances ensures you get valid cover that protects you on the road.
