Holidaymakers and hauliers can use their existing motor insurance when travelling across Europe.
The EC has waived the need to apply for a green-card from their insurer which was thought to be required after Brexit.
But the documentation will no longer be needed and proof of insurance by the UK policy note will be sufficient.
Huw Evans, Director General at the Association of British Insurers said, “This is excellent news.
“We have long campaigned for the UK to be part of the Green Card Free Circulation Zone so we warmly welcome the decision by the European Commission today.
“The Commission has taken a pragmatic approach on the matter. UK drivers will no longer need to apply for a green card through their insurer which will help reduce bureaucracy for drivers and road hauliers travelling between the UK and EU.”