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Does a CCJ Affect Car Insurance?

Quick answer: A County Court Judgment (CCJ) may affect your car insurance. Some insurers consider credit information when deciding whether to offer cover, what premium to quote or whether monthly instalments are available. The effect varies between insurers, so a CCJ does not automatically mean that you cannot obtain car insurance.

A CCJ is likely to have a more obvious effect when you want to pay monthly. Paying for insurance by instalments normally involves a credit agreement, and the insurer or finance provider may check your credit report before approving it or setting the interest charged.

There is no fixed amount by which a CCJ increases car insurance. Your quotation will still depend on factors such as your age, address, occupation, driving record, vehicle, annual mileage, claims history and the insurer’s own assessment criteria.

How can a CCJ affect car insurance?

Insurance providers do not all treat CCJs in the same way. Depending on the provider and the policy, a CCJ could affect:

Experian explains that an insurer may check your credit history to verify your identity and, if you choose to pay monthly, may use the information when deciding the premium and rate offered. MoneyHelper also notes that insurers might consider credit scores for car or home insurance, especially where a customer pays monthly.

Why do insurers check credit information?

Car insurance pricing is based on risk. Insurers combine the information in your application with their own claims data and underwriting criteria. Credit information can form one part of that assessment, although it is not the only factor and it will not be used identically by every provider.

A separate credit assessment may apply when you choose monthly payments. Although it can feel like simply dividing an annual premium into twelve parts, the arrangement usually involves borrowing the cost of the policy and repaying it over time. A CCJ can therefore affect the payment arrangement even where insurance cover itself is still available.

Can I get car insurance if I have a CCJ?

Yes, it is often still possible to obtain car insurance with a CCJ. However, you may receive fewer quotations, face a higher overall cost or be required to pay annually rather than monthly.

Compare the total annual cost, not only the monthly figure. A low-looking monthly payment can include interest or fees that make the policy considerably more expensive over the full year. If an insurer asks about CCJs, credit history or financial circumstances, answer accurately. Giving incorrect information could invalidate the policy or affect a future claim.

How much will a CCJ increase my car insurance?

There is no reliable single figure. Insurers use different pricing models and do not generally publish a standard ‘CCJ surcharge’. Two drivers with similar CCJs could receive very different quotations because their vehicles, postcodes, driving histories and other risk factors differ.

The safest way to understand the possible effect is to compare quotations using the same cover details and payment method. Check both annual and monthly payment options, as the cost of credit can make the difference more noticeable when paying by instalments.

How long does a CCJ remain on my credit record?

A CCJ normally remains on the Register of Judgments, Orders and Fines for six years. It will also usually appear on your credit report during that period.

If the judgment is paid in full within one calendar month of the judgment date, you can apply for it to be removed from the register. If it is paid after one month, it can be marked as ‘satisfied’, but it normally remains registered for the balance of the six years.

A judgment may also be removed if the court sets it aside. A set-aside application is not simply a way to erase an unpaid debt: you need appropriate legal grounds, and the court decides whether the judgment should be cancelled.

Does a satisfied CCJ still affect car insurance?

It can. A satisfied CCJ shows that the judgment has been paid, which may be viewed more favourably than an outstanding judgment. However, if payment was made more than one month after judgment, the record usually remains visible for six years and an insurer or finance provider may still take it into account.

Will removing a CCJ reduce my insurance premium?

Removing a CCJ can improve the information visible on your credit report and may improve your options in future. It does not guarantee a cheaper quotation, because insurers consider many other factors and apply their own criteria.

A removal may not alter the price of a policy that has already started. The potential benefit may become clearer when you next renew or apply for a new policy. Ask the insurer directly whether a change to your credit record can be considered before the renewal date.

What should I do if a CCJ is affecting my insurance?

  1. Check your credit reports. Confirm the court, amount, judgment date, claimant and address recorded. Look for errors or judgments you did not know about.
  2. Check whether payment was made within one month. If so, find out whether you can obtain a certificate of cancellation and have the register updated.
  3. If it was paid later, make sure it is marked as satisfied. This will not remove it, but it ensures your record shows that the judgment has been paid.
  4. Take advice promptly if the CCJ may have been entered incorrectly or without your knowledge. Depending on the circumstances, there may be grounds to ask the court to set it aside.
  5. Compare annual and monthly insurance costs. Paying annually may avoid or reduce the additional cost associated with premium finance, although it is not affordable for everyone.
  6. Do not make repeated applications without checking the effect. Ask whether the quotation uses a soft or hard credit search and compare carefully.

What if the CCJ came from a parking charge?

Parking charge claims can result in a CCJ when correspondence or court papers are sent to an old address and the motorist does not respond. Discovering the judgment during an insurance, mortgage or credit application can therefore come as a shock.

Do not assume that paying an older parking-related CCJ will automatically remove it. Payment after one month normally changes the status to satisfied rather than deleting the record. If you did not receive the claim or believe the judgment is wrong, obtain advice about your circumstances and possible next steps.

Could your CCJ be removed?

CCJ Removal Services CIC offers a free, no-obligation 15-minute assessment to help you understand the judgment and whether there may be grounds to challenge it. We are not solicitors and cannot guarantee that a court will set aside a CCJ, but our experienced caseworkers can explain the process and assist in an administrative capacity.

Call 0161 711 1300

Request your free CCJ assessment

Frequently asked questions

Do I have to tell my car insurer about a CCJ?

Only provide the information requested by the insurer, but always answer its questions fully and accurately. Proposal forms and eligibility rules differ, so check the wording carefully or ask the insurer if you are unsure.

Does a car insurance quote appear on my credit report?

An insurer may carry out an identity or eligibility check when you request a quotation. If you apply to pay monthly, a credit assessment may also be completed. Ask the provider whether it uses a soft or hard search if this is important to you.

Is paying car insurance annually better if I have a CCJ?

It may reduce the complications and interest associated with monthly premium finance, but the annual premium itself can still depend on the insurer’s underwriting criteria. Compare the total cost and choose an affordable option.

Will paying a CCJ remove it from my credit file?

Payment within one calendar month can allow the judgment to be removed from the register. Payment after one month usually means it is marked satisfied but remains visible for six years from the judgment date.

Can I remove a CCJ myself?

You can make your own application, but a court will only set aside a judgment where the legal test is met. The correct route depends on why the judgment was entered, whether the claim was served properly and whether you have a realistic defence or another valid ground.

Does a CCJ affect car finance as well as insurance?

It can. Car finance is a credit agreement, so lenders will usually consider your credit history and affordability. This is separate from the decision made by a car insurer.

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Final publishing details

Disclaimer: www.ccjremovalservices.com is a trading style of Remove CCJ C.I.C. Remove CCJ C.I.C. Company Number 16058929 Registered Office address is Southern Office: The Hillhub, 1A Highfield Road, Dartford, DA1 2JH (Any legal documents or matters must be sent to the Southern Office address). Northern Office: Caidan House, Canal Rd, Timperley, WA14 1TD. PLEASE NOTE – WE ARE NOT SOLICITORS AND WE ARE NOT REGULATED BY THE SRA (Solicitors Regulation Authority) We are members of the Civil Mediation Council (CMC), The Paralegal Association (TPA) Membership Number C1224035 and The Civil Court Users Association, (CCUA). We hold Professional Indemnity Insurance of £1M. We can assist clients in the process of removing a CCJ and can assist you in dealing with the claimant and the court service on your behalf in an administrative capacity only. Our team is made up of either qualified or experienced legal case workers who manage clients cases on a day to day basis. You will remain a Litigant in Person (LIP) throughout your case, unless we agree otherwise specifically, in writing. We can arrange Court representation for you via a Regulated third party court advocacy provider, Barristers Chambers or a Barrister directly. We can assist you to complete court paperwork, and  assist you to draft legal documents. We will advise and guide you through the court process. We pride ourselves on providing an excellent service at an affordable cost and  we will always do our best to exceed clients expectations. You cannot make a complaint about us to the Law Society, The Legal Ombudsman or the SRA as we are not regulated by them and fall outside of their jurisdiction. You can complain about a Regulated Barrister to the Bar Standards Board (BSB) However we will do all we can to resolve any complaints before this becomes necessary.
Consumers usually feel the impact of a CCJ when they apply for a mortgage, credit card or loan, but they can also impact your ability to get car insurance.

Author: Luke Memory, Director and Qualified Paralegal

Last reviewed: 22/04/2024

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N244 Application Form

Please complete this form to download the Free N244 Application Form BUT we strongly advise you to call us so we can assess your case and ensure you have the legal grounds to ask the court to remove the judgment from your name.