Brexit could have repercussions on many aspects of our lives, if no deal is reached ahead of the looming March 29 deadline.
However, an area where you might not expect it to affect is car insurance – particularly for drivers who take their cars abroad with them.
Here’s some of the ways car insurance could be affected by a no-deal Brexit.
The use of Green Cards
Any driver familiar with taking their car to any non-EU country will know about having to carry a Green Card with them as proof of having car insurance.
However, in the event of no deal being agreed, motorists driving in Europe might have to obtain a Green Card, and that includes in the Republic of Ireland.
The good news is that you can request this card from your insurer and they will provide it free of charge. Insurance firms are, however, asking for more notice for these cards to be issued because of an influx in demand.
Without having one, you will need to take out insurance in the country you’re driving in, and face penalties if you don’t.
Please note that you should always check that your car insurance covers you to drive your car abroad, regardless of circumstances.
Positive news, perhaps?
A no-deal Brexit is seen as the worst outcome possible by many. However, it could have some benefits with car insurance.
Insurance costs are heavily influenced by EU law – the ruling that premiums for men and women had to be the same, for example, came from EU law statute.
There’s a chance that Brexit could make the insurance industry more competitive, which could lead to reductions in prices. However, this can neither be confirmed nor denied at this stage.
What else could motorists need to drive on the continent?
Something else UK drivers need to get if driving on the continent in the case of a no-deal Brexit is an International Driving Permit – known as an IDP.
These can be purchased from most Post Offices and cost £5.50 to buy. Two IDPs are relevant to drivers in the UK. The first is the ‘1949 IDP’ and applies to those travelling in Europe, Spain or Cyprus, while the more commonly used one if the ‘1968 IDP’, which applies to all to all other EU states. These will only need to be used and purchased in the event of a no-deal Brexit.
Such permits used to be available from the AA and RAC, but since 2019 these are offered from 2,500 Post Offices.