CAR INSURANCE IN EUROPE

If you take your holidays abroad in the EU and you wish to turn it into a driving holiday, you should check with your breakdown cover insurance policy provider to see if your cover is affected. In some cases you may be charged a higher premium and other fees you were not expecting.ž



If you take your holidays abroad in the EU and you have a desire to turn it into a driving holiday, check with your auto-policy provider to see if you will still be covered abroad. If you do not make the correct enquiries, it is possible you will be charged additional and unexpected, policy fees.

In some cases your policy provider may also be able to provide auto collision liability cover overseas. You should be aware however that this is not the usually the case and often, car breakdown cover, where you will be helped at the scene of any accident or have your vehicle fixed if needed, will usually only protect you if the collision or breakdown happens in the same country you took your policy out in.

Quite a few insurance companies provide breakdown cover in Europe as part and parcel of their comprehensive breakdown cover. Despite this, there are still policy providers that do not and will charge you an additional premium. You should enquire about this before you set off on your driving holiday, so that you have enough time to find an affordable European breakdown policy.

The EU state of France can be particularly difficult when it comes to breakdown cover as auto-breakdown recovery teams are not permitted on some of the lay-bys and you must contact the local police station to get the police to pick you up and arrange for your car to be moved.

A few United States auto insurance firms will provide you with international auto insurance cover, meaning that your policy will be accepted in whichever European country you are in. However, not all EU states have the same auto-insurance policy and you should always check the details of your own policy in case you are charged additional fees.

Visit EU Auto Insurance to find out how you can insure your car across Europe for cheap and to learn more about European auto insurance.

The first EU directive - This says that all motor insurance policies bought in Europe would include minimum requirements in all EU countries. The green card is no longer inspected at frontier posts as a result of this. The green card ensures that the policy is covered for EU & EU Associated Countries *(see below), however Cover in EU / EU associated Countries is restricted to minimum (i.e.: Road Traffic Act and NOT Comprehensive, Third Party Fire & Theft, Third Party Only) Cover can be extended to give same cover as in UK following the payment of an additional premium.

Some companies give up to 90 days free with Comprehensive cover. If this is not the case, an extra premium is required to cover duration of trip. A Green card is required for non-EU countries (see below). A green card acts as proof of insurance - an international certificate as such.

For countries not mentioned below (EG: America, Australia) cover has to be arranged when in that country
EU Countries:

Austria, Belgium, Denmark, Finland, France, Germany, Greece, Holland, Italy, Luxembourg, Portugal, Republic of Ireland, Spain, Sweden, UK.
EU Associated Countries:

Czech Republic, Hungary, Iceland, Liechtenstein, Norway, Slovakia, Switzerland
Non EU Countries that recognise a Green Card:

Albania, Andorra, Bosnia, Bulgaria, Croatia, Estonia, Iran, Iraq, Israel, Latvia, Macedonia, Malta, Moldova, Morocco, Poland, Romania, Slovenia, Tunisia, Turkey, Ukraine, Yugoslavia

The second EU directive - This made the inclusion of third party property damage law in the UK (through the motor vehicles Regulations 1987)
Motor Insurance Bureau



Motor Insurance Bureau covers two main agreements - uninsured drivers agreement, this means that if somebody causes harm or damage but is not insured then the Motor Insurance Bureau will provide for the damages of the injured party. The second agreement is the untraced drivers agreement or hit and run.

The Motor Insurance Bureau has been set up by the government to ensure that innocent third parties are paid as per the Road Traffic Act.

The Motor Insurance Bureau will become involved if an insured has lied to an insurer or breached policy conditions. In these cases a motor insurance company may want to wash their hands of the case, however, the Motor Insurance Bureau will ensure that the third party gets compensated. (The insurance company may then sue the insured for any amount it had to pay out). In this type of case there is an 'insurer concerned'.

The Motor Insurance Bureau also get involved in 'Hit and Run' cases or where the driver at fault has no insurance. They will collect an annual premium from motor insurance companies (based on the amount of motor business they do). If someone needs compensation from a hit and run case the Motor Insurance Bureau will use this pool of money.

The purpose of UK motor insurance laws is to ensure that all drivers are contributing to the insurance pot in proportion to their risk of accident. The laws lay down a framework so that above all any innocent party who suffers because of a road traffic accident should be compensated.

Rental-Car Insurance
In Italy, a Collision Damage Waiver (CDW) is mandatory for rental cars.

When you rent a car in Europe, liability insurance is normally included in the rate. Fire and theft insurance may also be included, but it's always a good idea to ask.






What typically isn't included is insurance against collision damage. To protect yourself against having to pay for car repairs (or even a brand-new car) in the event of an accident, you need a Collision Damage Waiver or "CDW." This is available from three sources:

Rental agencies

The rental agent will offer you a Collision Damage Waiver when you pick up your car. In a few countries, such as Italy, you may be required to take the CDW. The cost isn't cheap--typically 10 to 25 euros or U.S. dollars per day--but buying it from the rental-car firm is simple and offers peace of mind. You may also want to inquire about theft insurance, (LDW), which is usually mandatory with Italian car rentals but is optional in most countries.

Credit-card companies

Some credit-card companies provide free collision insurance for rentals charged on their Gold or Platinum cards. Unfortunately, the coverage isn't always as good as it seems, and many card issuers no longer protect overseas travelers or limit their protection to cheaper cars.

To make matters worse, you may be required to authorize a deposit on your credit card up to the replacement cost of the vehicle, which isn't very practical if the car's value is more than your credit-card limit. If you get into an accident, you'll normally have to settle up with the rental firm, then seek reimbursement from the credit-card company after you get home.

Avoiding the need for extra insurance

If you live outside the EU and are driving for at least 17 days, consider a short-term lease (such as a Peugeot Open Europe "Buy Back" lease) instead of a traditional car rental. You'll get a new, factory-fresh car that's fully insured at no extra cost. (As a bonus, leases are available to drivers who may be too young or too old for a standard car rental.)

Wherever you are travelling in the EU your car insurance policy will automatically provide, at no extra cost, the minimum cover (third party liability) required by law. This also applies to Iceland, Norway and Switzerland. If you have comprehensive insurance at home, check that the cover extends to travelling in other countries. You may also want to consider vehicle breakdown insurance.


A green card is not necessary when travelling in the EU but it serves as internationally recognised proof of insurance and it makes it easier to claim compensation if you have an accident. If you do not take a green card with you, you should carry your certificate of insurance. The green card system currently covers 43 countries and is managed by an association of insurers. Their website gives further details about the green card system and its objectives.






Your insurer can give you a European accident statement form, a standard document that makes it easier to make a declaration on the spot if you have an accident in another country.

New rules have been introduced to ensure that motorists get rapid compensation for accidents no matter where they are in the EU. They have made procedures easier and settling claims quicker, with fines being charged on late payments. This applies not only to accidents that happen in the EU but also to accidents between two EU parties in a country outside the EU but which belongs to the green card system.