Finance Travel

Insurers warn of Brexit travel costs

Written by Tim Barnes-Clay

Motorists and holidaymakers might need to buy extra cover when abroad if no Brexit deal is reached.

Taking your kids abroad could get more expensive for you and your family if no deal is reached on travel and motoring insurance.

The Green Card

The system in force in the UK and Europe is the ‘Green Card’ system. It allows the movement of cars across international borders with one internationally recognised certificate in countries that use the same system. Brits don’t need a green card to travel to Europe, but this could change if there is no agreement during talks with the EU.

What if it’s a no deal?

Without a deal, Brits driving in the EU may have to carry and present a green card when travelling by car in Europe. Border guards will check the green card at every border crossing. This could drive up costs and keep you in the queue for longer. With no deal, holidaymakers will need a travel insurance policy for travel in the EU. The EU’s EHIC card currently covers Brits travelling in the EU.

The Bright Side

Although a rise in travel costs is possible, it does not seem too likely. With a transition deal in place that lasts until 2020, British and European industries time to adjust. Huw Evans, Director General of the Association of British Insurers welcomed the deal. “With annual insurance contracts coming up for renewal it was critical to provide some temporary certainty to insurance customers.

We still need to see agreement that EU and UK regulators can fully co-operate during this period so they can begin to solve issues like continuity of insurance contracts.” Brexit Secretary of State David Davies is confident a deal will be struck. He said that insurers “now have certainty about the terms that will apply immediately after our withdrawal. They can continue to invest with confidence, as the design of our future partnership with the EU becomes clear.”

The UK will leave the EU on Friday 29th March 2019.