car insurance loophole????

joegriffin2002

is it possible to buy car insurance abroad. i am insured normally for my car in th uk and it is a uk registered car but because of ever rising insurance costs im trying to find different ways aroud the uk insurance laws for cars. ive been told i can get an insurance policy from any european country that covers me to drive in the uk . is this legal and is this possible as if so this loophole in the law could save british motorists a fortune each year as european insurance is much cheaper. if you can do it where do you start

bouncydog1

European car insurers will provide insurance that covers drivers in the UK under the Freedom of Services rules. This means that they are able to sell insurance in the UK as if they were registered in the UK. Benefits for the European insurers are that the EU solvency requirements are less that those required for FSA regulated insurers.

However I think you are mixing things up here - there are already insurers who are european based - Collingwood based in Gib for instance - who are doing this but their prices reflect UK prices.

If you are thinking of taking out a policy with your vehicle with, for instance, a french insurer, you will find that there are stringent rules about where the vehicle is registered and used etc. You would not be able to purchase cover on this basis for a UK registered vehicle used in the UK afaik.

There was a thread about this sort of arrangement on a site for UK expats based in France and also a t.v. programme as somebody living in France with a UK registered car had done this and ended up in Court for no insurance in the UK.