Holidaymakers are being warned that taking their car overseas could be an expensive proposition if they don't check the terms of their insurance properly.
A new survey by Moneysupermarket found that one in three drivers believed that a fully comprehensive policy would still be valid outside the UK. In many cases that is not the case.
Aside from a few companies, most insurers -- including many of the biggest names -- will automatically "downgrade" policies when drivers leave the country. This means that the policy will now only cover the minimum legal requirement in the respective company.
In most countries, including France and Germany, this means only having third-party cover. That would mean a potentially hefty bill in the event of a crash.
Many insurers will, however, allow policyholders to get fully comprehensive cover while abroad in return for an additional premium that depends on the length of the trip. There are also some specialist policies that offer permanent comprehensive cover overseas, which may be good value for those making regular trips.
