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Post year end vehicle insurance for continental Europe


BruceM

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This may be old news to some but I’m highlighting it anyway as it effects me and may effect others.

 

Having had a chat with my van insurer as the renewal cost had jumped almost 18% (underwriter’s algorithm change – now back to normal) I examined the policy docs to check that cover remained appropriate.

 

One change that appears to be common to all underwriters I checked is a change to the definition of the ‘geographical territory’ that the full insurance cover (ie full comprehensive insurance) applies to.

 

In a nutshell, it now states that the ‘geographical territory’ will cover all countries that do not require a green card (this bit emboldened on the policy doc). So the question arises, what happens if by 31/12/2020 a services agreement with the EU encompassing the insurance industry is not forthcoming and we have to revert to the green card system when driving in Continental Europe?

 

The wording indicates that in that situation insurance cover will revert to the minimum required under EU wide law, ie no comprehensive cover so potentially just third party.

 

I had a chat with my insurer about this and in summary they said that until they know what’s happening at the end of the year they will not be in a position to confirm their position on this, the wording basically gives them the option to revert to third party cover if circumstances dictate.

 

My own suspicion is that most insurers will attempt to revert to offering comprehensive cover whilst abroad for an additional premium much as they used to do in the old days. Competitive pressures may dictate otherwise of course.

 

So it’s one to keeep an eye on if your insurance overlaps year end and you’re heading for the Continent.

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