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. Here’s what you need to know about Marshmallow.
Who is Marshmallow?
The 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.
Marshmallow can also cover UK-born drivers aged 21-75. It can cover some people with a provisional licence, as well as those with a full driving licence.
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. It currently offers 2 versions of this on its site: Original and Plus. Marshmallow Original doesn’t cover you for driving other people’s cars, and doesn’t include onward travel after an accident.
Marshmallow Original 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
There are 2 separate entries for Marshmallow on customer review platform Trustpilot. One shows very high ratings (average 4.4), and one shows very low ratings (average 1.5) when we checked in July 2024. More solid data is available from the Financial Ombudsman Service. In 2024, it published a half-year report of complaints data for July-December which shows that 53% of complaints against Marshmallow were upheld by the ombudsman – this is far above the average figure of 36%.
At Finder, we’ve recently received several complaints about Marshmallow, all relating to the way it handled claims.
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
Policies underwritten by a company that’s not regulated in the UK
Only does comprehensive insurance
High percentage of complaints upheld by ombudsman
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 could be an 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 £30. If you cancel after 14 days of buying your policy (not your policy start date), there will be a much higher cancellation fee, which differs depending on the policy, ranging from £60 to £125.
No, unless get the premium version – Marshmallow Plus.
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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