The trade association believes the ‘best outcome for customers, road hauliers and insurers continues to be for the UK to be part of the Green Card free circulation zone’
Trade body the ABI is urging the UK government to continue negotiations with the EU Commission to ensure that the UK can remain as part of the Green Card free zone following the end of the Brexit transition period on 31 December.
Regardless of whether the UK obtains a Brexit deal or not by the end of December, from 1 January 2021, all UK motorists and road hauliers will need to carry an insurance Green Card when driving in the European Union (EU).
The Green Card is an international certificate of insurance that proves that visiting motorists have the minimum compulsory motor insurance required by the law of the country being visited.
Currently, all European Economic Area (EEA) countries – including EU countries, Iceland, Liechtenstein and Norway – are part of the Green Card free circulation area, which means that motorists based there do not have to carry Green Cards when visiting other countries in the area.
However, when the transition period ends this month, then UK motorists will be required to carry Green Cards for driving in the Republic of Ireland and other EU states, unless the European Commission agrees that the UK can remain in the Green Card scheme.
Motorists who fail to carry a Green Card when required will risk having their vehicle seized and they will also face prosecution.
In response to this situation, the ABI has written to Grant Shapps MP, the secretary of state for transport, to encourage the government to put pressure on the EU Commission to act.
Carol Hall, the ABI’s assistant director, head of European and international affairs, said: “Insurers have put considerable resources into preparing for the need to issue Green Cards for travel from 1 January 2020 to minimise any disruption to motorists.
“While they are geared up to do so, it is without question that the best outcome for customers, road hauliers and insurers continues to be for the UK to be part of the Green Card free circulation zone.
“We appreciate the pragmatic approach the UK government has taken on this matter and we need them to press the EU Commission to agree that the UK and its motorists can stay in the Green Card free zone.”