How Brexit Has Impacted Car Insurance for UK Drivers

Since the UK’s departure from the European Union, the implications for car insurance have been significant — especially for those who drive in Europe. From Green Card requirements to changes in how claims are handled abroad, Brexit has reshaped the motor insurance landscape in ways that UK consumers need to understand. This article summarises the key changes, using insights from the British Insurance Brokers’ Association (BIBA) Brexit Guide, the UK Government, and the Motor Insurers’ Bureau (MIB).

Green Cards: Reintroduced, Then Removed

Immediately after the end of the Brexit transition period on 31 December 2020, UK drivers travelling in the EU, EEA, or other participating countries were required to carry a Green Card — a physical certificate issued by your insurer proving that your vehicle had valid UK insurance. This requirement applied not only to holidaymakers, but also to commercial drivers and anyone taking their vehicle abroad (including those driving between Northern Ireland and the Republic of Ireland) (BIBA, 2021).

Fortunately, on 2 August 2021, the European Commission confirmed that the UK would be part of the Green Card Free Circulation Area. This meant UK drivers no longer needed to carry a Green Card when entering EU countries (GOV.UK, 2021). This exemption helped remove unnecessary paperwork and reduced travel friction across borders. However, it remains essential to carry proof of insurance, and drivers should always check local requirements before departure.

Claiming for Road Accidents in the EU: Less Protection

Before Brexit, the process for claiming compensation after a road accident in the EU was relatively straightforward for UK residents. Under the EU Motor Insurance Directive, you could make a claim against a foreign driver’s insurer via a UK-based claims representative or through the Motor Insurers’ Bureau (MIB) (MIB, 2021).

Post-Brexit, these consumer protections no longer apply. If you’re involved in a collision with an EU-registered vehicle abroad, you may need to bring your claim directly against the foreign insurer — often in the local language, under local legal frameworks. In some cases, drivers may need to appoint a lawyer in the EU country where the accident occurred. This not only introduces complexity but could also increase the time and cost involved in settling a claim.

Cross-Border Travel: Northern Ireland and the Republic of Ireland

One of the early uncertainties after Brexit was the impact on drivers in Northern Ireland crossing into the Republic of Ireland. Initially, Green Cards were required even for short, routine journeys. According to BIBA, this raised concerns given the high volume of cross-border travel for work, family, and commerce (BIBA, 2021).

Thankfully, the August 2021 Green Card exemption removed this requirement, bringing relief to drivers on both sides of the border. Still, drivers are advised to ensure that their insurance policies explicitly cover use in the Republic of Ireland and to carry up-to-date documentation when travelling cross-border.

Breakdown Cover and Medical Protection

Brexit also affected related services such as breakdown assistance and access to healthcare. Some UK insurers previously bundled in EU breakdown cover, but this is no longer automatic. Drivers are encouraged to check whether their policies include breakdown recovery valid across Europe.

In addition, UK motorists have lost automatic access to the European Health Insurance Card (EHIC), which provided emergency medical cover across EU states. The replacement — the UK Global Health Insurance Card (GHIC) — offers similar protections in most EU countries, but does not extend to all EEA or other European countries. For full protection, comprehensive travel insurance is strongly recommended, especially if driving abroad (GOV.UK, 2022).

Vehicle Repairs and Insurance Premiums

One of the more indirect consequences of Brexit has been disruption in supply chains. The insurance industry relies on timely access to spare parts for vehicle repairs. New customs checks, tariffs, and administrative hurdles have led to delays in sourcing parts from the EU, potentially increasing repair times and costs (ABI, 2021).

While Brexit itself has not caused an immediate spike in insurance premiums, the knock-on effects of higher repair costs, longer vehicle off-road times, and possible legal expenses for cross-border claims could influence future pricing. For now, insurers are watching trends, but consumers may see more variation in premiums depending on how Brexit-related factors continue to evolve.