Nearly half of drivers across the UK are unaware whether their car insurance policy covers them for driving in Europe, research has found.

According to a survey from a price comparison website, 49 per cent of UK motorists admitted that they do not know exactly what their existing insurance policy covers when driving in Europe.

And with the current financial crisis leaving more British holidaymakers opting to travel to Europe using their own vehicle this summer, a majority are unaware if they will be covered by their car insurance at all.

A third of those who participated believed that a fully comprehensive insurance policy would provide them with the same level of cover in Europe as it does at home.

However, research from the website revealed that only 50 per cent of the 20 insurers examined will provide fully comprehensive policies for those driving in Europe.

Furthermore, one in five Brits believes their policy would be downgraded to third-party cover whilst in Europe.

Yet research revealed that just nine of the 20 insurers automatically downgrade the policies.

Steve Sweeney, head of car insurance at the website said: “When driving in continental Europe, motorists need to be aware a provider could automatically downgrade a fully comprehensive policy to either the minimum cover required for that country or even third-party only - and that's as soon as the wheels hit continental soil.

It is a mistake to assume your existing cover is valid when driving abroad - chances are your insurance policy is likely to differ."