What Does Brexit Mean for Motorists

Whether you voted for stay or exit, the UK’s exit from European Union has been finalized by the majority vote.

The results were close with 51.9% voting to exit while the 48.1% voting to stay, but it happened. The decision of Brexit sent shockwaves throughout the UK and EU region. Now, the final exit is due next year, and there are only a few months left.

What the future hold for the UK citizens remains uncertain. As the negotiations are underway, we know that Brexit is going to affect every walk of life to some extent. If you drive a car in Britain, be ready to face some good and some bad consequences of it.

Here is a guide for the motorists to understand Brexit and what it means for them. 

1-    Fuel Prices Will Temporarily Rise

As Britain gets ready to leave EU, a sharp rise in petrol prices is expected. Both petrol and diesel price are likely to increase which means increased operating costs of the vehicle.

However, the spike in prices is expected to be short-term, and as the economy proceeds, the prices will lower again. The temporary increase is due to the market instability as the immediate aftereffect of Brexit.

So, the motorists can face up to 5% increase in their fuel expense.

2-    Driving Abroad Will Require International License

As the exit draws near, the prospects of negotiations and deal are becoming more visible. However, it is expected that no deal will be reached and the UK driving license will be invalid in EU. If you are a frequent traveler or the driver abroad, you can apply for the international permit.

The international permits are not expensive and are available in five pounds. But, motorists should be prepared to go through the hassle of applying and waiting in their local post office. Though, it will not impact the maintenance and operational costs.

3-    Car Insurance will be Valid throughout EU

Thankfully, you do not need to worry about your car insurance when you travel abroad on your car. Even though the driving license will not be valid in the EU, Britain will remain the part of the Free Circulation Zone. As per the laws of free circulation zone, UK’s car insurance will be applicable throughout EU. However, individual differences may occur due to insurer’s policy.

So, when you check car insurance and compare, you must go through the insurance company’s policy for the EU region. As the United Kingdom is the hub of the insurance industry, the prices of insurance policies are expected to decrease due to high competition.

It is good news for the motorists as they can expect lower premiums which will balance out the petrol price hike to some extent.

4-    Breakdown Costs and Assistance

Overall, the breakdown costs and the roadside assistance whether you receive it as part of your insurance plan or request for it remains the same. Most of the breakdown assistance provider or repair companies are local companies which will remain unaffected after the Brexit. These small local companies usually work independently and remain indifferent to the economic changes.

When you are looking for car insurance compare deals, you should look into the additional benefits such as breakdown costs and roadside assistance.

5-    Lease and New Car 

If you are a motorist looking to buy or lease a new car, Brexit is not a good time to do so. The UK citizens have been enjoying significantly low-interest rates in the past. But, the market instability in the upcoming days is driving dealers to increase the car prices as well as driving banks to increase the interest rates. So, you will need to spend more on buying the new car.

6 Tips to Choose the Right Car Insurance for Your Vehicle

Getting the car insurance is usually as difficult as choosing the right car for you.

It should not be a decision made in haste. If you want your insurance to live up to your expectations, be affordable, and fulfill your legal requirements, you must take the time to research and shop around.

Car Insurance is a mandatory requirement for the drivers and it is a criminal offense to drive without insurance. It means that you have to have insurance if you want to keep yourself on the road. But, the increasing fuel prices and maintenance costs have significantly increased the cost of owning the vehicle. The insurance premium seems like an additional burden to the drivers’ pockets.

However, the market research and Car Insurance Comparison can help you stay within your budget while getting maximum coverage. Here are tips to land you to the right insurance policy with a reputable company.

1-    Know What You Need

What you really need is what you should always get. Unless you know what you need, you can overspend or underspend on your insurance and may have to face bitter consequences.

So, the first thing is to determine your needs for the car insurance which includes your mileage, purpose of the car, your financial situation to pay the excess in case of an accident. Asking these questions to you and your fellow drivers can help you to be clear about your requirements.

2-    Know What States Need

Insurance is not just for you. It is not a luxury or an option but it is required by company law. Any person who wants to drive in the UK must have a valid insurance that is appropriate for the car.

The legal requirements for insurance vary based on make, model, and power. So, you should also check with the DMV authority to ensure that your insurance is according to laws. Usually, the legal requirement is to have the third-party insurance which means that you can claim the loss of the third party involved in the accident if you were at fault.

Checking the requirements early will save you from surprises later on.

3-    Get Multiple Quotes 

There is no replacement to market research and insurance is one of that shopping. If you want to save money while losing your coverage limit, you should shop around and get multiple quotes.

With the internet and websites, it has become easy to Get car insurance quote online and compare them. You can request quotes from the insurers by filling up online forms or you can talk to insurance agents through customer service.

However, you should get multiple quotes.

4-    Check Insurer’s Rating

Not every insurer is the same. When you are comparing the quotes, you should not only focus on the price but must also consider the insurer’s rating. Some insurers are better than others in terms of rating. A rating system involves various elements including after-sale help, claim readiness, quickness to resolve claim etc.

If there is a regional authority that rates insurance companies fairly, you should check the rating at its website too.

Therefore, the better insurer rating can help you land to an insurance company that can help you quickly in the times of need.

5-    Read Reviews

Customer reviews are usually the most honest insights to the business’ dealings. You can read the reviews when you are going through Car Insurance Comparison UK websites or you can check the reviews on Google, Facebook, and Social media pages.

You should also ask for referrals and if any of your relatives or colleagues have experience with a specific insurer, you must ask about their experience before finalizing your policy.

6-    Check Coverage Options

Not all insurance companies have the same coverage options. So, when you get quote or compare them, you must specifically look at the level of coverage.

The right policy only covers what you need and nothing less or more than that unless these are additional benefits offered for free.