Car Insurance Buyers' Guide page 5: Driving abroad

• Guides
• Published: 07 Sep 2008 in Motoring and Car Insurance

Europe-bound British motorists could be out of pocket by thousands of pounds as they return from foreign holidays, simply because they are confused about the levels of insurance cover needed for driving on the Continent.

Many drivers assume they are automatically covered for driving abroad, when in most cases they are only automatically covered for basic Road Traffic Accident (RTA) insurance. At best they will have third party cover, (depending on the country they are travelling in) which means drivers would not be covered if their car was stolen, or if they become embroiled in legal matters after an accident.

The confusion boils down to history, as British drivers have historically needed a certificate, called a green card, as proof of their insurance overseas. With the advent of the single market in the early nineties, some of the EU countries agreed that tourists need not travel with their green card documentation, but that was not universally applied across Europe.

For example, in Romania a car can be impounded if the driver cannot produce their green card, and it is also required in Malta, Andorra and Poland. Even tourists travelling off-the-beaten track in France and Italy can experience difficulties, despite the fact that these are both countries where, in theory, you do not need the card.

The green card itself is free. It demonstrates that there is some level of insurance cover for the car. But be warned! Unless a prospective traveller extends their cover they will only have basic RTA insurance whilst abroad. Insurers often say they charge for a green card and can call it 'green card cover' but in reality they are charging for extending the same level of UK insurance cover whilst abroad. This 'foreign use extension' is rarely covered free of charge within a travellers existing policy.

Insurance rates do vary for extension of cover depending on how long the cover is required. Some insurance companies will also take into account the type of car being covered and other pertinent factors which affect their risk. Some offer hybrid packages which include European breakdown cover.

We advise anyone travelling abroad in their car to extend their comprehensive cover well before they travel in order that the documentation arrives before the date of travel.

Next - page 6: No claims bonus explained

Back to page 4: Car insurance jargon buster