Blog
What does Brexit mean for UK motorists?
The UK is still a member of the EU and is likely to remain so for at least two years – many say longer. Theresa May’s new Government has yet to trigger the formal process of exiting the union, which will start the clock ticking. Until then, the UK is still bound by EU legislation. There has already been an impact from the vote to leave, however, with the falling value of the pound and the turbulent economy.
Download our latest FREE eBook – Brexit and the automotive industry – for information on the impact of Brexit on UK motoring.
Car prices
Any change in car prices, for either new or used vehicles, will be largely down to the cost of importing raw materials and components needed for manufacturing and repair. A depreciation in the pound’s value will mean it is more expensive for manufacturers to bring in goods from outside the UK, which could potentially lead to more expensive vehicles for domestic motorists.
Fuel prices
As always, the price of fuel is mostly dependent on the amount of oil being produced, which is the cause of the current lower fuel prices. It is unlikely Brexit will have a major impact on the price at the pump, with estimations varying wildly. However, wholesale fuel is traded in dollars, so the strength of the pound will have some impact.
Insurance
Decisions in the EU can impact on insurance rules in the UK. A recent example is a ruling from the European Court of Justice that stated providers could no longer take customers’ gender into account when setting premiums, which led to a slight cost increase for women and fall for men. However, it is uncertain whether any legislation would change when Britain leaves the EU. Any disparities between UK and EU insurance cover could affect motorists when travelling abroad, but this is unlikely to occur anytime soon.
Driving in Europe
The impact of Brexit on UK motorists driving in Europe are entirely speculative and dependent on Government’s negotiated exit deal. However, we could see additional customs controls at borders, the need for passport stamping at crossings, and a limit to the length of stay, among other changes. A falling pound could also drive up the cost of travelling in Europe.
Sign up to Car Care Plan’s monthly newsletter and get all the latest industry news and views straight to your inbox.