Travel: Insurance

Department for Transport written question – answered on 29th January 2019.

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Photo of Kate Green Kate Green Chair, Committee on Standards, Chair, Committee on Privileges

To ask the Secretary of State for Transport, what discussions he has had with the Department for Exiting the European on the potential effect on the insurance industry of the UK leaving the EU without a deal.

Photo of Kate Green Kate Green Chair, Committee on Standards, Chair, Committee on Privileges

To ask the Secretary of State for Transport, what discussions he has had with the insurance industry on the financial support they will receive to provide their customers with a green card in the event that the UK leaves the EU without a deal.

Photo of Kate Green Kate Green Chair, Committee on Standards, Chair, Committee on Privileges

To ask the Secretary of State for Transport, what estimate he has made of the unit cost of administering the distribution of a green card for driving in the EU in 2019; and projection his Department has made of the ongoing cost of administering that distribution.

Photo of Chris Grayling Chris Grayling The Secretary of State for Transport

My officials and I have engaged, and continue to engage, with the motor insurance industry and other relevant departments to ensure that both the Government and insurance sector are prepared for every eventuality.

We have discussed the need for any financial support with the motor insurance industry, in particular the Motor Insurers’ Bureau, in preparation for a ‘no deal’ scenario. However, the cost to the industry of providing their customers with Green Cards as proof of third party motor insurance while abroad in the event of ‘no deal’ is expected to be minimal and financial support offered by the Government has not been deemed necessary by the industry at this stage. Green Cards are provided to motorists free-of-charge by their insurers, although they may choose to reflect production and handling costs through a small increase to their administration fees depending on demand.

It should be noted that the UK continues to meet all of the requirements for remaining part of the Green Card-free circulation zone and we continue to urge the European Commission to issue an implementing decision that would ensure UK motorists can drive in the EU without a Green Card and vice versa.

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