How Will Brexit Affect Car Insurance?

Brexit and Car Insurance
Brexit and Car Insurance

It is hard to predict how Brexit will impact different areas of daily life but it is important for people to be aware of potential changes so that they can be prepared.

One area that many motorists have concerns over is their car insurance and how leaving the EU will impact this. This is an understandable concern so read on to find out how Brexit could impact your cover.

The Current Situation

The UK is currently in the transition period which runs until the end of 2020. It is unlikely that much will change over the rest of the year. After this, the UK will no longer be subject to EU rules so there are likely to be changes from the start of 2021 but what these changes are remain to be seen and will depend on what – if any – deal is agreed.

For the latest information on the transition period rules and what will happen with a deal or no deal – refer to the UK Governments website page on driving abroad.


Previously, all UK car insurance policies provide a minimum level of cover when driving in the EU but you could increase coverage if you wanted to (at a cost) and you did not need much documentation. One possible change could be that a ‘green card’ is required to prove that you are covered to drive in the country that you are visiting.

In this context, a Green Card is an international certificate of insurance proving visiting motorists have the minimum compulsory insurance cover required by the law of the country visited.


It is possible that Brexit could also impact the price of car insurance as there are many factors that impact premiums. As an example, it might be harder and more expensive to get replacement parts from Europe so there could be a rise in premiums to make up for it.

GAP Insurance

In terms of GAP insurance, Brexit will not impact this type of cover and you will still be covered if driving in Europe. You will need a comprehensive insurance policy in order for GAP insurance to be valid, though, so a green card could be vital if the UK leaves without a deal. GAP insurance is a smart type of cover to have and could save you a fortune so it is certainly worth taking out with specialists like Direct Gap.

Gap insurance is designed to cover the difference between the amount your insurer pays out if your car is stolen or written off, and the price you paid for it.

Dean Sobers for Which

It is currently difficult to predict how Brexit will affect car insurance and other areas of life because there is still so much uncertainty in the air. Nothing will be changing this year during the transition stage but following this there could be a few changes in terms of coverage when driving in the EU and the cost of premiums but any changes should be clearly communicated early on.