Why A No-Deal Brexit May Add To Your Car Insurance Costs

Tue 25th Sep 2018

British drivers wanting to drive in Europe may have to apply for a driving ‘Green Card’ if a Brexit agreement cannot be met between the UK and EU politicians.

The UK government has advised that drivers on the continent will have to produce a ‘car cover certificate’ to prove they have adequate insurance, otherwise they could face a fine and a driving ban. Drivers currently automatically qualify for third-party insurance under the current EU agreements, but drivers could be stopped and checked if a no-deal Brexit is the ultimate outcome.

UK insurers currently have no expectation to produce ‘Green Card’ documents and would likely pass on any admin costs to policyholders to cover the additional paperwork.

While European drivers in the UK would face similar issues, it is still a major issue which needs clarification according to the AA’s director of insurance, Janet Connor.

“Seven million drivers go into Europe for business or pleasure every year.

"The need for an insurance Green Card, which at present is free of charge, could bring a greater administrative burden and costs on insurers.

"The Government has made it clear that they will not check items at the border, so it needs to declare who will check them and where,” she said on thesun.co.uk.

"This is on top of the potential need for an International Driving Permit (IDP) of which there are two types in different European countries.

"This extra administration is an inconvenience for drivers, but for industry and particularly small businesses, it potentially adds a further layer of bureaucratic difficulty to cross-border trading.

"From what was an easy and simple process of driving on to the continent, driving your own car in Europe could become a real pain."