What effect will Brexit have on UK motorists?

30 Nov 2020 | NEWS

Whatever your opinion of Brexit, the UK has already left the EU, with transition arrangements due to end later this year. The impact of Brexit on life in the UK will be far reaching, with British business, economy and finance all noticing changes. Another group who will notice changes in 2021 due to Brexit are British motorists. But what exactly will the effects of Brexit on motorists be? How will driving alter after Brexit and what changes should you be prepared for in 2021?

Driving abroad after Brexit

If the UK ends the transition arrangements with no deal, there will be changes for UK motorists who want to drive their cars abroad. From 1 January 2021, British motorists will need to apply for a Green Card to be able to drive their vehicle abroad. A Green Card proves that the motorist has a minimum level of insurance cover for third party damage and personal injury whilst abroad. Without a Green Card, drivers could be denied entry at the country borders, receive a fine for being uninsured and even have their vehicle seized. Currently, Brits are able to drive their cars in Europe without a Green Card. However, this will change if the UK leaves the EU without a deal being made. If you’re towing a trailer or a caravan, you’ll need an additional Green Card to prove that you have the additional insurance required. Many insurance providers are happy to provide a Green Card free of charge or for a small fee. However, you should allow at least a week to apply for a Green Card if you’re planning to drive in the EU after 31 December 2021. Your Green Card will then last up to 90 days from the date of issue.

The impact of Brexit on fuel prices

Many British motorists are concerned about the impact of Brexit on UK fuel prices. Over the past eight years, petrol prices have fallen from a high of 140p per litre in September 2012 down to their current average of 114p per litre in November 2020. Motorists will be concerned that Brexit may cause fuel prices to begin to rise once more. Thankfully, most of the world’s leading oil-producing countries fall outside the UK, so are unlikely to be impacted by Brexit. Oil prices across the globe are currently low, meaning that even a fluctuation in the value of the pound only has a minor impact on the price of fuel. As long as the price of oil stays low, there is unlikely to be a large shift in the price of fuel. Ultimately, we can never know what the future holds but consumers are currently in a great position when it comes to fuel prices and shouldn’t worry about the impact of Brexit on the cost of fuel.

How will Brexit impact new car prices?

If the UK can’t strike a trade deal with the EU by the end of 2020, the World Trade Organisations (WTO) tariffs of 10% will apply to all cars imported into the UK. This rise would see the Ford Fiesta rise by over £1,000 whilst a Volkswagen Golf would increase in price by almost £1,400. Vauxhall, Ford, Peugeot and Mercedes-Benz have confirmed that their prices will rise if a no-deal Brexit goes ahead. Many other manufacturers have said that they will need to review their prices going forwards to account for the new import tariffs.

Will Brexit have an impact on car insurance premiums?

Car insurance premiums are rising year on year, with suggesting that premiums are rising by an average of 5% each year. But how will Brexit impact car insurance premiums? Will the rise in car insurance prices become more dramatic in the event of a no-deal Brexit? Luckily for UK motorists, Brexit is unlikely to impact car insurance premiums. The fundamental principles which car insurance is based on will be unaffected by Brexit, meaning that car insurance will not change. However, there could be an impact by insurance companies no longer needing to follow EU regulations. For example, EU regulations forced car insurance companies to treat both male and female drivers equally when it comes to the cost of car insurance. This means that female drivers, who are typically safer drivers, had their car insurance premiums raised to be equal to male’s premiums. If the UK government decide to remove this regulation, the cost of car insurance could drop for female drivers.

To sum up

If no deal is reached between the UK and the EU by the end of 2020, Brexit could have costly consequences for UK motorists. These include increasing costs of purchasing a new car and the requirement of a Green Card to drive in Europe. Thankfully Brexit is unlikely to have an impact on fuel prices or car insurance premiums. This means that motorists can feel secure in the knowledge that the day-to-day running costs of their car are unlikely to alter due to a no-deal Brexit.

Thank you to one of our trading partners, Jonathan Seaman from, for composing this article

Get In Touch


+44 (0)1422 230689

Your postcode enables us to connect you with your nearest regional office