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.