After 47 years of membership, the UK formally exited the European Union on the 31st January 2020. Since then, the country’s been in what’s known as the “transition period” which has meant we’re still subject to EU rules and remain a member of the single market and customs union. However, that transition period comes to an end on 31st December 2020, so after that the UK will be going it alone, meaning many of the rules and regulations we’re governed by will change.
This could have implications on the car insurance industry, which may change aspects of your policy and affect price going forward. For those wondering how Brexit could affect your car insurance, here’s some helpful information to keep you in the know.
How will Brexit change the rules?
So, with the UK exiting the transition period on the 31st of December, what does that mean for your car insurance policy while you’re driving in Europe? For the time being not a lot, although you might require a green card if the UK leaves the EU without a deal. This is just a document that proves you’re covered to drive in the country you’re visiting, but everything else should remain pretty much the same.
This means there’s no need to panic if you’re someone who drives to Europe regularly as it’ll be pretty much the same as before. If there are any changes made to your policy, then your insurance provider will be sure to notify you well in advance.
Will Brexit affect breakdown cover across the EU?
Now that we’ve established Brexit will have little to no impact on your ability to drive in Europe, you might be wondering whether it’ll affect breakdown cover. Again, you’ll be glad to know nothing is changing, for the time-being at least. Your breakdown cover policy will remain the same and you’ll still be covered in the same countries as before. Again, if there are any changes to your policy then your provider will let you know in good time.
Will Brexit affect the cost of car insurance?
When considering this point, things are a little less clear. There are many factors that can affect car insurance prices, so depending on the impact Brexit has then you might start to notice a difference in the cost. If the cost of replacement car parts goes up due to shortages or an increase in duty, then insurance providers might try to offset this by putting the cost of their policies up slightly, but it’s impossible to say at this stage.
If you’re concerned about the cost of your insurance increasing, there are ways to help reduce your premium. Take a look at our guide that offers tips for reducing your car insurance premium, and you may slash hundreds off the price of your policy. Alternatively, if you’re ready to compare car insurance today, just head over to our price comparison page where you could find some of the market’s most attractive deals with just a few clicks!