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Sally Wilson

Sally is a key member of the MoneyMaxim editorial team. She is a frequent hire-car user and often goes on holiday with her family. With an interest in getting great value for money, Sally shares her hints and tips for travelling and insurance.

How will Car Hire Excess Insurance Policies be affected by Brexit?

We offer the latest information regarding car hire excess insurance policies, and how Brexit might impact you if you are hiring a car after we leave the EU.

Brexit Two Ways

If you are expecting to rent a car after Brexit could your plans be affected?

We spell out the potential implications to you if you are hiring a car depending on the various scenarios that could play out as Parliament decide on whether we leave the European Union on a Deal or No Deal basis.

We will explain the situation both for Car Hire itself, and for those wishing to buy (or have already bought) a stand alone excess insurance policies such as those available through the MoneyMaxim Car Hire Excess Insurance comparison service.

So let's consider various situations

We leave the EU with a Deal

Car Hire

During the transition period - which is expected to last about 20 months - there will be no change. During that period a longer term agreement will be agreed which will cover driving licences and whether UK licences will be recognised in countries which are currently part of the EU.

Car Hire Insurance Policies

During the transition period car hire excess insurance can be bought by both residents of the UK and, where insurers allow it in other countries as well. The only practical difference is that a few insurers have started to restrict sales to non UK nationals due to the current uncertainty as to whether there will be a deal.

We leave the EU without a Deal

Car Hire

This means that we will no longer have common arrangements with both countries within the EU / EEA or with countries which are in other parts of the world but where our current arrangements are determined by the fact we are an EU member. If we leave the EU without a deal there are a large number of countries where the International Driving Permit (IDP) required will change and action will be required.

If you are hiring in the Republic of Ireland you will not need an IDP as Ireland doesn't require IDPs to be held by driving licence holders from non-EU countries.

If you are intending to drive in European Union or EEA (apart from Ireland) the map below indicates the type of IDP that is required. Be aware you will need both if you plan to travel, say, from France to Spain.

Brexit  - International Driving Permit Requirements

If you are driving outside the EU please refer to the Government website covering International Driving Permits which lists the IDP required both now, and that which will be required if we leave on a no deal basis.

Car Hire Insurance Policies

No change is expected if your policy is already in force. You may hear from your insurer spelling out an changes particular to the administration of your policy.

For UK residents there will, at least in the short term be no change.

For EEA / EU residents some policies may be withdrawn from sale as UK insurers may not have permission to sell policies to EU / EEA residents. We are expecting though that a number of policies will continue to be on offer, and some insurers have set up shop in EU countries so that they will be able to direct customers to EU / EEA regulated offices.

Article 50 is extended

Car Hire and Car Hire Insurance

Current arrangements continue until such time as the extension comes to an end when one of the above will come into force.

Travel Insurance policies

There is more potential for confusion with regard to travel insurance - as a number rely at least in part of the EHIC (European Health Insurance Card). Read our article covering Travel Insurance and Brexit for more information.

Image courtesy of: Tumisu at Pixabay