Does Your Car Insurance Cover You Abroad?

With petrol prices rising, the idea of a road trip overseas this summer probably wasn’t the most inviting prospect for Britain’s motorists. However, with fuel prices now tumbling back to more affordable levels many may choose to embark on a trip to the Continent – however, if they’re not careful, it could be their car insurance that catches them out.

Research from a price comparison website shows that 39 per cent of British motorists do not realize that their cover is automatically downgraded when they take their car into Europe – meaning that even if you have a fully comprehensive policy in the UK, it’s unlikely to offer the same level of cover abroad. Under regulations, all insurers are obliged to offer third party cover in all European Union (EU) countries – however, that means that if there’s any damage to your own car you’ll probably have to foot the bill.

Which car insurance companies downgrade you?

Of the UK’s 10 leading car insurance providers, four will downgrade your cover when you travel abroad. The companies that reduce comprehensive cover to third party only in the EU include Barclays, Direct Line and Churchill. However, while these may be the most high profile, they are not the only providers that employ the same practice.

There are some exceptions to the rule, however – the likes of the AA, Marks & Spencer, Endsleigh and the Post Office will all honor your existing level of cover throughout the EU. However, you should still pay close attention to the terms of the policy – there may be a cap on how long you can drive abroad which is normally between 60 and 90 days.

How can drivers get the car insurance cover they need?

For some motorists, third party only cover will be perfectly satisfactory. However, it’s worth thinking of the consequences just in case something does go wrong. An accident can be a difficult experience at the best of times – but it could turn a holiday into a nightmare, particularly if you can’t speak the local dialect. Incredibly, around six per cent of drivers believe that travel insurance will cover them for driving overseas but this is never the case.

So for those who travel abroad, particularly those that travel regularly, it’s worth shopping around for car insurance with a comparison website and finding a policy that more accurately suits your needs. It’s also worth taking into account the breakdown aspect of a car insurance policy and whether this covers driving in the EU. Take a look at call-out times to avoid sitting at the roadside for too long and consider adding a courtesy car to your policy so you’re not stuck in one place.

What else should you consider when driving abroad?

Before traveling overseas, pay close attention to the rules and regulations of the country you plan to drive in.

There are many variations between UK roads and those overseas – and not just that we drive on the left! Speed limits can vary – for example, in Belgium the speed limit in towns is just 50km/h. There are also many set regulations that you must abide by – a warning triangle is compulsory in France, Germany and Belgium, while you’ll also need to display a GB sticker and have headlamp adjustments.

Remember that you’re unlikely to get away with a motoring mishap overseas, just as you wouldn’t in the UK. Foreign authorities will clamp down hard if you fail to pay attention to road signs or don’t follow the rules of the road. This in turn can have a negative effect on your car insurance – picking up a speeding fine or being involved in an accident overseas will almost certainly bump up your premiums.

It’s a good idea to carry out a thorough maintenance check on your car before you leave too – check the oil, water and tire levels, and if possible get your car serviced before you go away to reduce the chances of a breakdown.

Also remember not to be lax about security while overseas. You’re likely to be carrying expensive items with you in your vehicle, such as your luggage, so try to avoid leaving items on display that may make your car a target to thieves. Utilize your car alarm and immobilizer, park in a well-lit area and always remember to lock your door and close your windows or you could void a car insurance claim.