Ensure you are covered before taking your car abroad

More than 6.3 million people will be driving their cars overseas as the holiday season takes off, new research from independent financial research website MoneyExpert.com shows. But many of them could be heading for disaster unless they check their motor insurance.

Analysis shows around 25 per cent of comprehensive motor insurance policies will not offer full cover for your car when you drive abroad unless you pay extra. And most insurers insist you tell them before you take your car overseas and receive written agreement from them.

Research shows 6.32 million people or their partners intend to drive their cars overseas in the next 12 months – around 13 per cent of all adults aged 17 or more. People aged between 45 and 54 are the most likely to drive overseas while those aged 65-plus are the least likely.

However they all need to think carefully about their motor insurance before heading off to the Channel Tunnel or the ferry ports. MoneyExpert’s analysis shows that one in four policies either only offers full insurance if you pay extra or limit cover to a trip lasting just three days.

These policies will be enough to enable you to meet legal requirements for driving abroad but will not pay for damage or the loss of your car.

Tim Berry, a director at MoneyExpert.com said: “Taking your own car overseas makes sense for millions who want to avoid queuing at airports or driving an unfamiliar hire car when you’re already struggling to adapt to driving on the wrong side of the road.
“However insurers have strict rules on what you can and cannot do when it comes to taking our car out of the country. Some impose time limits on how long the car can be out of the country while others charge an extra premium.

“Some however allow you take your car overseas for no extra upfront charge. If you do intend driving overseas you should either check your policy before you go or when it comes round to renewing your policy move to one which offers overseas cover at no extra cost.

Insurers which will charge an extra premium to take you car overseas include Barclays, Admiral, Diamond, Sheila’s Wheels, MoreTh>n and Direct Line.

Those which automatically offer cover for driving overseas and do not impose a time limit include Saga, Primary Insurance, Nationwide Building Society, Lloyds TSB, Help the Aged and Churchill.

Most policies limit the number of countries you can drive in – generally to European Union members, Scandinavian countries and some Balkan countries.

If you are planning to take your car overseas always phone your insurer first to find out what conditions they impose. It can also be useful to obtain an International Motor Insurance Certificate – the so-called Green Card.