Drivers and truckers may not need to apply for a ‘green card’ in order to remain insured while driving in the European Union after Brexit.
The UK could still remain within the Motor Insurance Free Circulation Zone after the UK Department for Transport secured agreement from the European Bureau of Council.
The deal, however, still remains subject to approval from the European Commission, but that is likely to centre around timescales of implementation.
It was originally feared that Brexit would mean UK drivers would need to apply for a green card in order to remain insured while driving on the Continent. The biggest disruption was likely to be for haulage firms, which would have needed certificates for each individual vehicle.
The Council of Bureaux has indicated that the UK’s Motor Insurers’ Bureau can remain part of the guarantee agreement, under the Motor Insurance Directive, as a signatory, in relation to minimum third party insurance provision. This means that participating countries, once an implementing date is set by the EU Commission, will refrain from carrying out checks on motor insurance for vehicles entering their country
The deal was revealed after the Association of British Insurers and the British Insurance Brokers’ Association received letters confirming the intention.
“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,” said Huw Evans, director general of the ABI.
“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 ABI. 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.”
If approved, the UK would join three non-EU countries that are part of the Free Circulation Zone: Serbia, Switzerland and Andorra.
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