Irish motorists who travel to Northern Ireland and Britain may in future have to present Green Cards to prove they have valid motor insurance.
The measure is being rolled out by the Motor Insurers Bureau of Ireland (MIBI) as a contingency plan in the event of a no-deal Brexit.
Currently, all motorists travelling with an Irish registration in the EU are covered, however that could change for those looking to enter the UK from March when they are expected to leave the bloc.
David Fitzgerald, Chief Executive of the MIBI, said the Green Cards will mean if a no-deal materialises, Irish-registered drivers in the UK will still be covered:
He said: In the event of a no-deal Brexit, Green Cards will be required, in that scenario European insurance arrangements will no longer apply to the UK, including Northern Ireland.
“Instead, international insurance documents will be required, these are Green Cards and will provide proof to law enforcement that drivers have valid insurance cover in place.”
Currently all motor vehicles with a valid Irish registration travelling within the EU are covered by the terms of the EU Motor Insurance Directive (MID). This allows motor vehicles to travel freely between the Republic of Ireland and Northern Ireland/ UK as well as within other EU countries without requiring supplementary insurance documentation.
Should a no-deal Brexit occur, the UK (including Northern Ireland) will no longer be party to the MID, meaning a Green Card will be required to demonstrate to the authorities in Northern Ireland and the rest of the UK that valid motor insurance cover is in place for those vehicles.
Mr Fitzgerald said: “Green Cards will only be necessary in the event of a no-deal- Brexit. Our hope is that a deal will be agreed between the UK and the EU, meaning there will be no disruption to the motor insurance status quo for those travelling between the Republic of Ireland and Northern Ireland/ UK.
“If there is a transitional Brexit arrangement put in place between the EU and the UK then Green Cards will not be required.
“We had hoped to avoid the need for Green Cards, however as there continues to be uncertainty as to what the final outcome of the Brexit process will be, we want to raise awareness about the possible implications from a motor insurance perspective. This is to help members of the public who bring their motor vehicles to Northern Ireland or the rest of the UK to be prepared should a ‘no deal’ Brexit occur.
“Even if a hard Brexit does occur, policyholders’ existing insurance policies will remain valid for vehicles travelling from the Republic of Ireland to Northern Ireland or elsewhere in the UK. However, the Green Card is necessary to provide proof of that insurance cover to the relevant law enforcement authorities.
The rules will also apply in reverse, meaning UK motorists wanting to drive in the EU will need to arrange extra documentation in the event of a no-deal Brexit, insurers have warned.
Private motorists and companies have been recommended to contact their insurance providers around a month before they plan to travel to get one – or risk breaking the law.
The same rules apply to European Economic Area (EEA) motorists travelling to the UK.
Huw Evans, director general of the Association of British Insurers (ABI), said: “As it looks increasingly possible that a ‘no-deal’ Brexit may happen, we want all insurance customers to know the facts about what this means for them.
“If you live in Northern Ireland and drive to the Republic of Ireland, or if you plan to drive your vehicle to mainland Europe after a no-deal Brexit, you will need a Green Card to prove you are insured.
“You should contact your insurer before you travel in order to get one. This advice applies to businesses as well as individuals.”
An agreement between UK and European insurance authorities was struck in May 2018 to waive the need for Green Cards in the event of a no-deal Brexit.
However, the agreement has not yet been ratified by the European Commission.
There is currently a Green Card-free circulation area covering the EEA and Andorra, Serbia and Switzerland.
Systematic border checks of the document as proof of third-party motor insurance have been abolished in the area.
However, in the event of no-deal this would cease to apply for UK drivers.
The UK’s Department of Transport (DfT) issued guidance to motorists and insurers in September.
We continue to hope these arrangements are never needed
It said that the cards would be issued free of charge, although insurers may increase their administrations fees to reflect the cost of providing them.
Commercial operators with fleet insurance were advised they will need a card for each vehicle.
For countries that require separate trailer insurance, a separate Green Card may be required for the trailer.
Without a Green Card, motorists would have to be covered by third-party insurance bought in the country they are driving in.
Without it drivers may not be able to drive and could also be fined.
The ABI said it is against the UK leaving the EU without a deal, with Mr Evans warning such an outcome would be “bad for the economy and bad for our customers”.
“We continue to hope these arrangements are never needed and urge the Government, UK Parliament and EU27 to agree an orderly way forward,” he said.