If you are planning on going on holiday or even taking a gap year, then car insurance is probably the last thing on your mind.
However, it is something that needs serious consideration if you are a motorist who is planning driving their vehicle in foreign countries with research by MoneySupermarket.com indicating that many British motorists don’t know whether their existing policies are sufficient to cover them for travel in foreign lands.
The AA recently reported that the average motorist now pays £921 per year for their car insurance policy. This is not the sort of thing that you can leave until last minute, with it requiring a lot of planning in order to make sure that you are both complying with local laws and getting the cheapest deal available given your requirements.
Car insurers foreign policies
The vast majority of car insurers will provide 30 days of cover for international driving for their policy holders as standard. However, the level of cover which you will be afforded during this time would likely be downgraded from fully comprehensive to third party at best.
You should therefore always check your policy documents before going off on your travels in order to make sure that you are being provided with the levels of cover which you require for your trip.
Green card
The most basic level of cover that is required by law for international driving is called an international motor insurance certificate; better known as a ‘Green Card’. Your present car insurance company will provide you with a ‘Green Card’ upon request.
However, you must remember to acquire this before setting off on your journey as you will then be required to present your ‘Green Card’ to the relevant authorities if you happen to be involved in an accident anywhere in Europe. However, remember that this is the lowest level of cover available, and in some countries will provide even less protection than third party policies. If your current car insurance provider does not include fully comprehensive European car insurance as standard then it is recommended that you arrange for additional cover.
MoneySupermarket.com car insurance expert Peter Harrison commented: “No one wants their great motoring getaway to turn into an expensive nightmare so motoring Brits should not assume their existing cover is valid when driving abroad.”
“A number of policies automatically downgrade your cover as you soon as you hit continental soil. It's therefore crucial that motorists study the small print of their policy before setting off on holiday. After all, if you were unfortunate enough to have a crash while abroad and were only covered for third party, you could be left with a hefty bill.”
International car insurance
International car insurance prices are mainly calculated utilising similar factors to those employed to calculate home-bound car insurance policies; with your age, gender and number of years no claims accumulated all impacting upon your premiums. In addition to this the risk profile of your vehicle will also be considered, with the car insurance group your vehicle is assigned to, the make and model and any non-manufacturer approved modifications that have been made all influencing the quotes on offer.
However, there are other factors that will be taken into account along with the conventional ones. Obviously the countries you are visiting, the number of miles which are set to be completed and the length of the policy will all have an impact.
Not one size fits all
Regardless of whether or not you are taking the green card option, you should always check the local insurance laws of the country/s you are visiting so as to be sure that you have at least the minimum levels of cover required.
For instance, in some countries you must take a policy out through a local insurer in case damage is caused to other people’s vehicles and repairs are required in the local area. You can find information about the insurance laws in any of the countries you are planning on visiting by taking a look at the Foreign Office website for the respective places.
You should also pay attention to the countries which are covered by a specific insurer. Some insurance companies will only cover you in countries which belong to the European Union, and it is therefore increasingly important to check this if you are planning on venturing further than this.
Breakdown cover
The majority of breakdown cover policies will not cover you for international travel. Failure to realise this could leave you in a lot of trouble if you are unable to locate the nearest garage in a foreign country or communicate in the local language. It could also place financial strain on you while you are in the middle of your travels if you are forced to fork out for an unexpected repair bill.
It is therefore advised that you also arrange for an international breakdown cover package to be put into place if you are planning on taking your vehicle into foreign lands. This will not only make your life easier if you do experience a failure (with you being able to simply phone your provider who will then arrange for a local breakdown cover provider to take care of you) but also potentially help you avoid unexpected expenses which could cut your holiday or gap year short.
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