CAR INSURANCE IN EUROPE

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.