What could Brexit mean for you and your car?

Britain has voted to leave the EU. Undoubtedly, a lot of uncertainty lies ahead, and although it’s much too early to say what the exact implications are going to be, everyone has questions. For motorists, most will be wondering how their motoring costs will be affected, particularly when it comes to their insurance premiums.

Fortunately, comparethemarket.com are always trying to offer drivers the best and most affordable insurance products and services by allowing you to compare insurance premiums – whether we’re in or out of the EU.

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Could cheaper car insurance be on the way?

Actually, insurance costs in the UK are greatly influenced by EU law, for example by preventing insurance providers from offering different prices for men and women. Brexit could possibly make the industry more competitive. In fact, many in the industry are already looking forward to adjusting their prices in an attempt to drive their market share post-Brexit. We already work to find the lowest possible prices from our insurance providers. And, if they’re able to reduce their prices, you can expect us to allow you to compare their best deals.

car insurance

Looking for a new car?

It mightn’t be all good news, however. The price of a new car purchase could rise, at least in the short term, as dealers who anticipate uncertainty in the market may increase their prices to cushion any unexpected bumps down the road, so to speak.
Rupert Pontin, valuation director at Glass’s Guide, said that buyers could expect ‘a period of instability for new and used car sales’.

There could be other variables that could affect the car market in the future too. For example if import/export duties change, or if the domestic car manufacturing market is impacted as a result of Brexit. Of course, any change in the economy could affect this industry, as well as the car sales sector.

If you’re looking for finance for a new car though, interest rates are currently at a historically low rate, which could make this a good option as long as you can maintain your repayment schedule.

petrol station

Driving fuel prices

The RAC and AA both expect that Brexit will fuel price rises (pardon the pun) for both petrol and diesel. Although this isn’t expected to last, again import duties could affect the cost of bringing fuel into the country, which is not good news for us drivers.

Motoring law

While we await the final outcome of Brexit, current motoring law will remain unchanged for probably the next two years. Any changes will be gradually phased in, so you won’t see any changes until 2018 at the earliest and later if the Brexit process is drawn out.

However, in the future, post Brexit, if you take your car to the continent, you could face several new challenges that didn’t exist in the past. Custom controls could slow your progress when driving through Europe with a UK registered vehicle as border controls change. More obviously to everyone, we’ve already seen falls in sterling against the Euro, so your money won’t go as far at European petrol pumps.

Whatever happens, you can rest assured that comparethemarket.com will still be here allowing you to compare your car insurance so you can search for the right policy for you.

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