On 24 September 2018, the Government published a technical notice on vehicle insurance if there is no Brexit deal.
The current position
Motorists from non-EU countries driving in the EU must have a Green Card, an internationally recognised certificate issued by their motor insurer as proof that they have third party motor insurance cover for driving in the country of travel. Currently, EU based private and commercial motorists do not need a Green Card to drive in the EU and EEA countries and in Andorra, Serbia and Switzerland as these countries benefit from being in the EU’s ‘Green Card-free circulation area’.
What happens if there is a no deal Brexit?
- UK motorists will be required to obtain and carry with them a Green Card in order to drive in EU and EEA countries, Andorra, Serbia and Switzerland. Likewise, motorists from these countries will need a Green Card to drive in the UK. Commercial operators with fleet insurance will need to obtain Green Cards for each vehicle in the fleet. Separate Green Cards may be needed for trailers.
- To make sure that the Green Card is recognised in these countries and to facilitate the settlement of claims for traffic accident victims, the UK’s Motor Insurers’ Bureau will need to enter into an agreement with each of the relevant National Insurers’ Bureaux.
- The Government warns drivers that without a Green Card they may not be able to drive in EU/EEA countries after exit day and may be subject to a fine depending on the law of the country. Alternatively the driver may have to buy local insurance (frontier insurance) which may be expensive and not easily available.
Advice to motor insurance companies
The Government advices motor insurers to prepare for an increase in demand for Green Cards and suggests that they should make sure their administrative systems will be able to deal with such an increase. Currently, Green Cards are issued by motor insurers for free. The Government notes that insurers can decide to increase their administration fees to reflect an increase in their production and handling costs.
Other technical notices for driving in the EU if there is a no deal Brexit
The Government has also published the following guidance:
- Driving in the EU if there is a no deal Brexit
- Commercial road haulage in the EU if there is no Brexit deal
- Operating bus or coach services abroad if there’s no deal Brexit