European Union exit – How it will affect motoring

European Union Exit – How It Will Affect Motoring

Following the momentous decision taken today by United Kingdom voters to leave the European Union, many motorists will want to know how this decision is likely to affect them. The AA did not take a position on the referendum and declared it was for members to decide.

Questions

The AA stresses there are many unanswered questions and that it will take months, possibly years, to negotiate a complete picture for motoring and the motor industry in the UK.

Fuel Prices

In terms of the price of petrol at the pumps, there will be a period of instability as the market begins to adjust to the news. With the value of the pound falling by more than nine per cent overnight and the weaker pound against the dollar fuel prices at the pumps are likely to creep up.

GB Sticker

For Brits driving abroad, you must display a GB sign and could be fined if you don’t, however it is unclear if the GB Euro-plates will still be valid in the EU. Outside the EU, some countries still require a GB sticker even if you have euro-plates, so it is always safer to display one. The letters must be black on a white, elliptical background. They must be at least 80mm high with a stroke width of 10mm.

Motor insurance

Under current EU legislation, anyone who has a car that they insure can legally drive their car in any other EU country and benefit from the minimum level of insurance cover (usually third party) that applies in the countries visited. Although there will be no immediate change to this arrangement, it could be withdrawn in the longer term.

Borders

At present, border controls between the UK and other European countries exist but they are likely to become more onerous. While this might lead to greater delays for travellers and increased bureaucracy it may have much greater implications for the freight transport industry. It could also lead to limits on how much ‘duty free’ could be brought home.

Fallout

Edmund King, AA president, says: “While the fallout of the referendum result will continue to be discussed, there are lots of points drivers will want to see resolved. As the voice of the motorist we will ensure that their views are heard loud in clear throughout the negotiation process.

“Fuel prices will be the biggest immediate concern of drivers with the weaker pound, and the Chancellor’s prediction that leaving the EU would lead to fuel duty increases. We will oppose duty increases and continue to monitor the situation on behalf of our members.”