With negotiations continuing over the United Kingdom’s exit of the European Union, and uncertainty surrounding the terms of the Brexit deal, we want to provide an update on the potential impact on customers should the UK leave the EU without a withdrawal agreement. It is important to note that nothing has been formally agreed at this point, but intermediaries and their customers should be aware of the potential implications on the motor insurance industry.
Guidance from the Association of British Insurers (ABI) and Motor Insurance Bureau (MIB) is that drivers should be prepared and have a Green Card when driving abroad after midnight on the 29th March 2019.
Why is a Green Card needed?
A Green Card is an international certificate of insurance which guarantees that the motorist has the necessary third party insurance cover. These certificates prove that customers are suitably insured to drive in these countries. A physical copy of a Green Card on green paper is needed when traveling as digital copies are not currently accepted. If customers arrive at the border without a physical Green Card, they may not be allowed to drive in that country.
What does it mean to your customers?
At present, TFP Schemes policies allow policyholders to drive within the European Union, cover is still in place and nothing will change. If your customers are planning a trip that is completed before the 29th March 2019 then there is no change for them.
How will we be issuing Green Cards?
The process of issuing Green Cards for driving within the EU is currently being implemented by TFP Schemes. Until more certainty is provided about the formal agreement, the guidance in the interim is that you should contact us if customers intend to drive abroad at least a month before travel, we will issue and send the required document for your customers attention.
We will keep you updated with further information when there is more clarity regarding the long term implications of Brexit.