European Private Motor Insurance
Here is a helpful selection of frequently asked questions and answers to assist you with issues regarding the complicated area of European Motor Insurance. Some of these problems for private citizens may be resolved shortly by the soon to be introduced European Motor Insurance 5th Directive, allowing the host state (eg France) to step aside and allow the domicile state (UK) to offer full cover.
1) I am buying a car in France next week but I have been informed that it cannot be insured until it is actually here in the UK. Why?
Current EU legislation states – It is against EU regulations for a United Kingdom insurer to provide cover for vehicles in another member state unless the company is specifically registered to operate on a freedom of services basis in that state and subscribes to the relevant Motor Insurers Bureau of that territory. The majority of UK insurers do not meet this requirement at the moment and as a result they are unable to offer cover.
2) So how can I arrange cover for the journey back to the UK?
There are two ways to obtain cover for your car:
- Ask the European dealer to arrange cover for you that will allow you to drive your car back to the UK and cover it in the UK while it is being pre-registered here; be aware cover may be restricted to the legal minimum required of that country, although some UK insurers ay be prepared to give “top up cover” to existing long term clients if the primary cover is obtained abroad, but this is usually on a strict case by case basis and may need to be referred to head office.
- Contact a UK insurer who is licensed to trade in that European country and ask them to arrange cover, it may be possible that your insurer could provide this cover if they are licensed to trade in that European country. There are only a few companies who may be prepared to do this.
3) How can I insure the car once it has been returned to the UK but is still registered in France?
Tell your BIBA Broker the chassis or engine number of the car and they can give you a temporary cover note so that you can apply to the DVLA to register your vehicle.
4) Do I need a Green Card when I drive abroad?
Many, but NOT ALL, UK insurers issue what is called an annual European Certificate of Motor Insurance. This states, on the reverse, that you are covered for driving within defined European territorial limits.
Such territories are the EU – Austria, Belgium, Denmark, Finland, France (inc Monaco), Germany, Greece, Holland, Italy (inc San Marino and the Vatican City), Luxembourg, Portugal, Republic of Ireland, Spain (inc Andorra) and Sweden.
Other territories whose arrangements follow EU insurance directives and are approved by the Commission of the EU, such as – Czech Republic, Gibraltar, Hungary, Iceland, Norway, Slovakia and Switzerland (inc Lichtenstein).
The Policy document wording will specify the maximum time duration (usually no more than 90 days maximum in any one year) permitted.
If the Certificate does not mention cover for Europe then you will need to obtain a Green Card or written confirmation of European cover from your insurer. If you do not arrange this, cover will be limited to the minimum compulsory third party insurance requirements of the territory concerned (be careful as this can even be less than the UK Road Traffic Act (RTA) cover – you will need to check separately to see if your Breakdown and Uninsured Recovery (ULR) insurance(s) extend to cover you whist you are abroad.
5) Do I need a Spanish bail bond?
There is no requirement for a bail bond and they are no longer issued by Insurers.
6) A British driver who owns a property in France has purchased a French car. He now wants to bring it back to the UK for a temporary period of up to one year; does he have to re-register it in the UK?
DVLA say no, not for up to one year for a temporary import.
However many UK insurance companies are unwilling to give cover for over 30 days to any vehicle that is not being registered in the UK. So the client will either have to obtain extended foreign use cover for the UK under his French policy or re-register the car within 30 days in the UK to obtain UK insurance.
7) I have been involved in an accident with a German driver inBelgium. I took his registration but did not exchange insurance details. Will my insurance company be able to track him down and recover my losses from him?
The Fourth EU Directive was adopted by the European Parliament and this was specifically created to require each member state to set up a database of motor vehicles to assist people involved in accidents to trace the Third Party driver from any member state.
In the UK the Motor Insurance Database (MID) has been established (presently only applies to UK Privately owned motor vehicles) and has been operative since the 1st July 2000. It is planned that commercially owned vehicles will be added to the MID commencing July 2002.
The registration number (of the other vehicle) is all that is required for your insurer to be able to trace the insurance details of the other party. Naturally the MID cannot be of assistance if the other party does not have insurance in force on that registration plate.
But the MID may pay – they will then attempt to reclaim from the German MID.
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