Insurers and brokers avoid Brexit Green Card gripes

UK drivers will not be forced to apply for a Green Card to travel in the EU after Brexit, the Department for Transport (DfT) has told the ABI.

Instead, as with Switzerland, Andorra and Serbia, the UK will remain in the ‘Free Circulation Zone’, subject to European Commission approval.

Drivers will be able to enter this zone using their domestic motor insurance policy and will not require extra documents.

This means that insurers will not be burdened with the administrative disruption that some had predicted.

Senior officials from the DfT confirmed this in a letter to the ABI, which along with Biba and the Motor Insurance Bureau (MIB) has made representations to the body over the past 18 months.

The move follows the DfT securing the Council of Bureau’s backing.

It has confirmed that it is able to meet cross-border claims involving UK drivers.

Huw Evans, director general of the ABI said: “This is good news for drivers and haulage operators who no longer face the prospect of doing reams of paperwork and paying admin charges every time they get on a ferry to Europe. It’s always encouraging to see common sense prevail and I look forward to the Commission concluding the formalities as soon as possible.”

Graeme Trudgill, Biba executive director added: “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 timescale of this is still to be determined by the European Commission.