Car insurance for driving abroad: Your essential guide

What car insurance do I need to drive my own car abroad?

For most UK drivers, the minimum cover you'll have abroad is third-party only - even if your insurance is fully comprehensive in the UK. GOV.UK is clear that UK vehicle insurance provides the minimum third-party cover for driving in the EU.

What 'third-party only' means

Third-party only (TPO) car insurance is the minimum level of car insurance you need to legally drive. Let's take a look at what it covers:

Why upgrading to European cover can be worthwhile

If your insurer offers fully comprehensive European cover, it typically includes:

• Accidental damage to your car

• Theft and fire protection

• The same or similar level of cover you have in the UK, while abroad

Common limitations to look out for

European cover is often restricted by:

• Trip length, such as a set number of days per trip.

• Total days abroad per year - commonly around 30, 60 or 90 days across the policy year.

• Countries included or excluded from cover.

• Higher excesses or different terms abroad.

Check your policy wording and confirm with your insurer what level of cover you have for your destination(s) and how long you'll be away.

Do I need a green card to drive in Europe?

In most cases, no. As of 2 August 2021, UK drivers do not need to carry a physical Green Card to drive in the EU, EEA, Andorra, Bosnia & Herzegovina, Montenegro, Serbia or Switzerland.

What is a green card?

A Green Card is an international certificate of insurance. It proves your vehicle has at least the minimum third-party cover required to drive legally in another country.

When might you still need a green card?

A Green Card may still be required in some countries, including Albania, Turkey, Moldova and Ukraine. Rules can change, so it's always worth checking the latest FCDO travel advice for your destination before you go.

Is it still useful to carry a green card?

Even where it isn't legally required, some drivers choose to take a green card anyway. It can act as clear proof of insurance if you're stopped by local authorities or involved in an accident - which can help make things simpler and less stressful.

What is car hire excess insurance and do I need it?

If you're hiring a car abroad, this is one of the most important bits of cover to understand and one that's easy to overlook.

What insurance comes with a hire car?

Most rental cars abroad include basic insurance, usually:

• Collision Damage Waiver (CDW)

• Theft Protection (TP)

These types of cover limit the rental company's costs if the car is damaged or stolen, but they usually come with high excesses to pay in the event of a claim.

What does 'excess' mean?

Car insurance excess is the amount you agree to pay towards a claim before the rental insurer pays anything. For hire cars, this can be £1,000s, meaning even minor damage could leave you with a big bill.

What is car hire excess insurance?

Car hire excess insurance covers this gap. If you're charged an excess by the rental company, this policy reimburses you for that cost up to the policy limit.

This is sometimes called standalone car hire insurance, excess car insurance abroad, or car hire excess cover in Europe.

When you buy car hire excess insurance, you can opt for either single-trip or annual cover:

• Single-trip policies work well if you hire a car occasionally.

• Annual policies can be better value if you hire cars more than once a year, in Europe or further afield.

Why buy excess insurance separately?

You can usually buy excess cover at the rental desk, but many drivers choose standalone car hire excess insurance instead because it's often cheaper than rental desk add-ons. It can also be more comprehensive, commonly covering things rental policies exclude, such as tyres, windscreens, roof and undercarriage. Check your policy terms to understand exactly what you're covered for.

Does travel insurance cover car hire?

Usually, no. Standard travel insurance typically doesn't cover damage or theft of a hire car, which is why separate car hire excess insurance is worth considering when you're renting a car abroad.

What documents do you need to drive abroad?

Before you set off, make sure you've got the right documents to drive legally and avoid delays or fines. Requirements can vary by country, so it's worth checking before you travel.

Mandatory documents

In most countries, you'll need:

• A full, valid UK driving licence

• Your V5C logbook (original, not a copy) if you're taking your own car

• A valid motor insurance certificate

• A valid passport

Without these, you may not be allowed to drive, even if your car and insurance are otherwise valid.

Do you need an international driving permit (IDP)?

You usually don't need an IDP to drive in the EU or EEA with a standard UK photocard licence.

However, you may need one if:

1. You're driving outside the EU/EEA

2. You have a paper licence

3. The country you're visiting has specific licence requirements

IDPs are issued by the Post Office, and you should always check country-specific guidance before you travel to confirm whether one is needed.

UK sticker rules

You must display a UK identifier when driving a UK-registered vehicle abroad.

If your number plate doesn't include the UK flag and "UK" identifier, you'll need to display a UK sticker on the rear of your vehicle.

Vehicle documents to have with you

Even if they're not always checked, it's sensible to carry:

• Your MOT certificate

• Proof your car is taxed

Some countries may ask to see these at the roadside.

Recommended safety items to carry

Many European countries require certain items to be carried in your car, such as:

• A warning triangle

• A reflective jacket

• A first-aid kit

• Spare glasses if you need them to drive

Rules vary, so check what's mandatory for each country you'll be driving in.

Towing a caravan or trailer

If you're towing a caravan or trailer, there may be extra rules aorund things like registration and documentation, speed limits, and equipment requirements.

Always check the specific regulations for your destination and any countries you'll drive through before you travel.

What affects the price of car insurance for driving abroad?

Car insurance for driving abroad is usually priced based on:

• How long you're travelling for

• Where you're going

• Your vehicle type

• Your age and driving history

More countries, longer trips or higher-risk vehicles can all increase the cost, which is another reason to compare.

How to get the best deal on car insurance for driving abroad

The cost of driving abroad can vary a lot depending on your trip, which is why it's a good idea to compare your options to avoid overpaying.

Compare before you buy

Different insurers offer different levels of European and international cover, so comparing quotes helps you:

• See what level of cover is included as standard

• Compare limits on trip length or number of days abroad

• Find cheaper options that still meet your needs

It's also a good way to check whether European cover is included automatically or needs adding on.

Choose the right type of cover for your trip

• Single-trip or short-term cover can work well if you're travelling once for a set period.

• Annual policies with European cover often work out cheaper if you drive abroad more than once a year.

If you're away for longer, look for policies that clearly state their maximum days abroad and the countries covered.

Check if a multi-car policy could save you money

If more than one car in your household is insured, a multi-car insurance policy can sometimes reduce the overall cost, even if only one of the cars is being driven abroad.

Don't overpay at the rental desk

If you're hiring a car, avoid buying excess insurance at the rental desk unless you've compared prices first. Rental desk cover is often the most expensive option, while standalone car hire excess insurance is usually cheaper and more comprehensive.

What to do if you have an accident abroad

Being involved in an accident, especially in another country, can be very stressful. If this happens, here's how to help protect your safety and any insurance claim:

At the scene

If it's safe to do so:

• Secure the scene and move to a safe location

• Call local emergency services if anyone is injured - 112 works across the EU

• Exchange details with the other driver, including names, addresses, vehicle details and insurance information

• Complete a European Accident Statement if one is available; many insurers and hire companies provide these

Gather evidence

Good evidence usually helps make the claims process much more straightforward. Try to collect:

• Photos or videos of the damage, vehicles and road layout

• The date, time and location of the accident

• Witness names and contact details, if there are any

Report it as soon as possible

• If you're driving your own car, contact your insurer straight away and follow their claims instructions

• If you're driving a hire car, report the incident to the rental company immediately, even if the damage seems minor

Delays in reporting can cause problems later, so it's best to do this as soon as you can.

How claims usually work

• Your own car insurance: Your insurer will assess the claim based on your policy cover and guide you through repairs, liability and next steps.

• Car hire excess insurance: If you're charged an excess by the rental company, you'll usually pay it first, then claim the cost back from your excess insurance provider using receipts and paperwork.

Keeping all documents, reports and photos will help your claim move faster.

European breakdown cover for your trip

If you're driving abroad, it's important to check your breakdown cover because standard UK policies don't usually extend to Europe as standard.

Why European breakdown cover matters

European breakdown cover can come in handy if something goes wrong. Depending on your policy, it can include:

• Roadside assistance if your car breaks down

• Vehicle recovery to a local garage

• Onwards travel, so you can continue your journey

• Accommodation costs if you're stranded overnight

• In some cases, repatriation, bringing your vehicle back to the UK

Without this cover, even a minor breakdown abroad could mean expensive recovery or travel costs.

Check what cover you already have

Before buying anything new, check whether your existing breakdown policy includes European cover as standard, or if it allows you to upgrade for a specific trip or time period. This can sometimes be the simplest and cheapest option.

Compare European breakdown cover

If an upgrade isn't available or doesn't offer enough cover, it's worth comparing standalone European breakdown cover policies.

Different providers offer different levels of support, so comparing helps you find cover that suits your destination, trip length, vehicle type and the level of help you'd want if something goes wrong.