Trade insurance after European referendum. Will be cheaper when we leave?
Is your insurer British? Does it reside in Gibraltar or Italy? Does it matter? Will premiums rise on trade insurance after European referendum results on 23rd June 2016? Will your business falter or grow? The answers to these, like many aspects of the British economy are unclear. What we do know however, is the current situation when it comes to market access for insurers. Business is able to cross borders from country to country thanks to a term known as passporting. Regulations are cross border, there are no additional tariffs and the free movement of labour enables companies to trade and place their Headquarters and taxation wherever they wish in the EU. That may all change if Brexit occurs and if the UK leaves the EEC for the first time in forty years. It is possible that due to a more competitive market, premiums for trade insurance after European referendum results in Brexit may actually be lower once compared.
Trade insurance after European referendum. What are the facts?
While business may well enjoy the fact they will be able to trade more freely with the rest of the world, being a member of the EEC would be more advantageous than completely withdrawing. Though wording coming from the continent appears to suggests that leaving a political union makes EEC inclusion void. That’s not strictly true. Yes if the UK population chooses to depart the EU and MPs agree – if they don’t there will be a constitutional crisis with the Queen intervening. Then trade insurance after European referendum being Brexit may well result in higher premiums. However many are hoping for cheap new deals. For the simple reason, a whole industry will be affected. Breakdown recovery agents may not be able to cross the border without a fee. Parts needed for repair may rise due to import costs and levies. Get a quote today. Insurers trading from abroad may have to pay over the top to access the UK market and compete against British business. As well the EU’s Motor Insurance Directive may no longer apply with UK government needing to write its own rules.
Comparing British trader’s insurance will be high on the agenda of everyone concerned. The British are well versed in trade and are certainly not wishing to operate like America or the EU after a Brexit. That’s really the whole point, especially with TTIP. And despite a large percentage of those in the motor trade wishing to remain do not think for one moment that Whitehall will be levying taxes on China and Germany affecting exports in return. Second hand car showrooms will not be affected overnight. Known new car manufacturers will not stop selling their brands to a 30 million driver nation. Even if EU-wide breakdown cover does start to rise, UK insurers already cover for a much wider garage cover across 50 countries so cheaper trade insurance will still be on offer. British motor traders are preparing and if Remain results will be better placed with their newly prepared services. A raft of bilateral agreements exist between EU countries when it comes to driving licences, safety and emissions. So trade insurance after European referendum, Brexit or Remain is unlikely to create much upheaval. If you have any questions regarding motor trade insurance if the UK leaves Europe, talk to one of our brokers today.