Brexit: No Change on Car Insurance Rules For UK Drivers on EU Holidays

Government sets out approach on motor insurance for drivers post Brexit

In its 2018 Manifesto, the British Insurance Brokers’ Association (BIBA) called for a practical approach to enable more than 2.5 million private and commercial motorists to continue to travel easily throughout the EU.

In a letter to BIBA this week the Department for Transport (DfT) set out its intended approach to motor insurance post-Brexit.  It confirmed the intention to remain part of the Green Card-free circulation area and to ensure the UK meets the requirements for third party motor insurance.

The Council of Bureaux (CoB) has indicated that the UK’s Motor Insurers’ Bureau (MIB) can remain part of the guarantee agreement, under the Motor Insurance Directive, as a signatory, in relation to minimum third party insurance provision. This means that participating countries, once an implementing date is set by the EU Commission, will refrain from carrying out checks on motor insurance for vehicles entering their country.

Graeme Trudgill, BIBA Executive Director said: “This is excellent news for commercial and personal motorists as well as brokers and insurers and follows collaborative representation by BIBA, the MIB and the Association of British Insurers. Without such an agreement drivers would be faced with increased bureaucracy and delays at borders and insurance brokers would need to have in place mechanisms to physically issue 2.5 million Green Cards every year. This is exactly the solution we wanted.”

The proposal requires the agreement of the EU Commission but this is expected to be purely procedural and the agreement will be put in place.

Trudgill concluded: “It was also pleasing that DfT acknowledged the support that BIBA provided on behalf of our members in developing the approach and they have confirmed they will keep us informed as matters progress.”

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