Drivers and haulage operators insured in the U.K. will not be required to pay for "green card" paperwork on entering EU member states post-Brexit, the Association of British Insurers said, citing a letter from the U.K. Department for Transport.
"Senior officials at the [Department for Transport] wrote to the ABI this week stating that the government has formally decided to keep the U.K. within the motor insurance 'Free Circulation Zone,'" the ABI said.
The European Commission now needs to confirm an introductory date, the industry body said, since the department already has agreement from the Council of Bureau, which regulates the green card system. The U.K. will share the same status as Serbia, Andorra and Switzerland within the system, ABI Director General Huw Evans said.
The green card is an international document proving motor insurance. In countries within the zone, drivers do not need to show additional documentation and can drive under their domestic insurance policy.
The ABI noted that the green card system has not been significantly updated since the 1970s. The green card itself is still issued on paper and cannot be transmitted electronically, the lobby group said.
