Driving abroad – a minefield of terms and conditions

British motorists could be running the risk of their dream holiday turning into a costly crisis by not checking their car insurance cover before driving abroad this Easter. 17.2 million drivers are completely unaware of the level of car insurance cover they have when travelling overseas. With 3 million British motorists heading to Europe this year, this could have a serious impact on their finances if they have to make a claim. uSwitch.com, the independent comparison and switching service, warns drivers not to assume that their fully comprehensive car insurance will automatically cover them when driving outside the UK.

Under EU law, all car insurance providers are obliged to offer third-party only cover when driving abroad. This level of cover will only pay out for damage sustained to another vehicle or driver - it does not protect against theft, accidental damage, or personal injury. In some cases, comprehensive insurance can be extended for the duration of an overseas trip, but drivers need to check the small print, as some insurers will charge for this, while others won’t. Policies also differ on the number of free days worth of cover they will provide and drivers can expect to have to pay extra if their trip lasts longer than the period offered by their provider (see table one). In reality, uSwitch.com has found that very few major providers will automatically offer more than three days free cover when driving abroad, with the exception of Ecar and Saga who offer 365 days a year.

Ashton Berkhauer, insurance expert at uSwitch.com comments: “It isn’t only sun cream protection that holidaymakers need to worry about when driving abroad this year - motorists must also spend some time examining the protection offered by their car insurance provider. Consumers should look at the level of cover on offer and watch out for any restrictive clauses as to the number of consecutive days a car can be driven abroad before the driver must return to the UK.”

Paying for additional days when driving abroad can be costly. Zurich offer 60 days free, however, should a motorist wish to extend this up to the maximum limit allowed of 180 days, they face a charge of up to £510.

Depending on the insurer, motorists can expect to pay either a one off flat fee to extend their cover or differing amounts depending on the length of time required (see table one). Barclays, for example, charge a one off fee of £21.50 to be covered for an additional 90 days. Admiral, Diamond and Direct Line offer different rates depending on the number of days required.

Three million British motorists head to the continent by ferry and channel tunnel every year while many more hire a car on arrival. Research from uSwitch.com however, reveals that two thirds (68%) of British motorists are oblivious as to the level of cover offered by their insurer when taking their car overseas, and worryingly, one in ten (2.5 million) wrongly assume that they are covered by their travel insurance for any motoring mishaps abroad. The research also highlighted that the euphoria of a holiday seems to bring out the less responsible side of British motorists as one in ten (2.8 million)(6)admitted that they were more likely to break the local speed limit.

Berkhauer concludes: “As car-friendly transport links to the continent are speedier, cheaper and more reliable than ever before, many motorists are happily travelling to their holiday destination in this way. uSwitch.com’s advice is simple - research the length and level of cover providers offer for driving abroad when you first purchase the policy. However, if consumers cannot find the details on driving abroad within their existing policy details and have any doubts they must phone their provider. This will minimise the risk of shouldering the bill for an invalid claim.”

Berkhauer’s top tips for Brits driving abroad:

Before you head off on your trip, check with your insurer that you have sufficient cover for driving your car while abroad and ensure that your policy includes comprehensive ‘foreign use’.

Check also the number of days – consecutively and in total in any year - that you are covered for driving abroad as these can vary from one policy to another.

When getting a new insurance quote, ask for a quote with and without cover abroad to find out the cost of adding the additional policy feature and to draw a like-for-like comparison between insurers.

Some insurers do not offer roadside assistance insurance in the UK, let alone European breakdown, so you may need to purchase this separately.

Europe has strict drink driving laws, at least as strict as in the UK, and in most countries stricter. Seat belts front and rear are obligatory everywhere. Speed limits are implemented rigorously and radar traps are frequent. In France, anyone caught travelling at more than 25km/h above the speed limit can have their licence confiscated on the spot.