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How would a no-deal Brexit impact your insurance?


How would a no-deal Brexit impact your insurance?

There is lots of uncertainty in the air over Brexit. Here is how a no-deal Brexit could impact your Motor and Travel Insurance. 

Motor Insurance

Green Cards and Driving Abroad

After 29 March all UK Motorists will potentially need to have a Green Card to:
  • Take your vehicle to countries in the European Union (EU) – such as France and Germany for a family holiday
  • Travel across the Northern Ireland – Republic of Ireland border
  • Transport goods into the EU (freight companies)

What is a Green Card?

It is essentially proof of your insurance, which could be required under EU law. Your Green Card will be issued by your insurer and you should contact your insurer/us (if we supply your insurance) one month in advance of travelling to request your Green Card. 
If you travel without a Green Card, you may be breaking the law. This applies to EU motorists travelling to the UK also. 
Please note that you will need to carry a physical card with you, this is not something you can have a digital copy of. 

Will Green Cards definitely be needed in the case of a no-deal Brexit?

In May 2018 an agreement was made between the European insurance authorities to waive the need for Green Cards in the event of a no-deal Brexit. However, this agreement was not confirmed by the European Commission which is why the insurance industry is still planning for Green Cards. 

International Driving Permit (IDP)

UK driving licence holders who live in the UK currently need an IDP in addition to their driving licence to drive in some countries outside the EU and European Economic Area (EEA), and can drive in these countries with their IDP. There are currently two types of IDP. 
From 28 March 2019, a third type of IDP will be issued with the type of IDP that some countries recognise changing. 
In the event of a no-deal Brexit, from 29 March 2019, you will potentially need an IDP in addition to your UK driving licence to drive in EU and EEA countries when visiting. You may need more than one IDP depending on the countries you are going to. 
More information on this process and applying for an IDP can be found here

Travel Insurance

We are working to ensure that business continues as normal in the event of a no-deal Brexit. 
If you are planning to travel during or after 29 March 2019 it is recommended that you take out comprehensive cancellation cover, to cover you in the case of travel disruption. 
Travel disruption cover is always recommended and will help with some of the financial losses involved with delays and cancellations. Please check whether your policy includes this before travelling. 
In the event of travel disruption caused by a no-deal Brexit the primary responsibility for offering alternative transport or refunds will rest with your travel company and/or airline, so we recommend you check all provider terms and conditions thoroughly before travelling. 

European Health Insurance Card (EHIC)

The EHIC currently lets you get state healthcare in other EEA countries and Switzerland at a reduced rate or for free. 
The Association of British Insurers (ABI) has stated that ‘If the UK leaves the EU on 29 March 2019 without a Withdrawal Agreement in place, and in the absence of a specific agreement to the contrary, the European Health Insurance Card (EHIC) will no longer apply.  This makes it even more important that you have appropriate travel insurance in place to cover medical costs while you are travelling in an EU country, in the same way as you would when travelling to a non-EU country.’
More comprehensive information can be found here.

We will continue to update you as the Brexit or no-deal Brexit situation unfolds. Please follow our social media pages and check back to our blog page for further updates. 

Posted by: Higos Insurance Services Ltd