Insurers warn of costs

Failure to secure a Brexit deal would leave motorists facing extra costs to drive on the Continent and could stop some pensions payments, insurance industry leaders are warning.

Leaving the European Union without an agreement in place would be unacceptable and an orderly exit is more important than artificial deadlines, the Association of British Insurers (ABI) insists.

Motorists may be left having to buy additional insurance cover if they head to Europe and produce a green card guaranteeing they have third party insurance at border checks, it said.

Compensation claims may also have to be pursued overseas rather than in the UK, the ABI warned.

It raised concerns that leaving the single market without an arrangement in place could leave insurers without a licence to carry out work in the country their customers are based in, which could mean cross-border pension payments cannot be paid.

The ABI also calls for urgent clarity on future access to the European Health Insurance Card (EHIC), which allows people to receive state-funded health treatment in certain circumstances, warning the industry will have to prepare for the extra costs of treatment if no deal is reached.