British drivers in Spain face higher insurance costs because they could be treated as "learner" drivers as a result of a dispute with Spain over driving licences, according to a report on Spanish News Today.

Many resident Britons are unable to exchange their British licences for a Spanish one at the moment so some UK nationals have decided to retake their test in Spain so that they can drive legally but it could mean that their insurance and even car higher rental costs rise because they are considered "new" drivers.

The British ambassador to Spain, Hugh Elliott, is involved in high level talks with the Spanish government at the moment over British driving licences but there is mounting concern that the issue will not be resolved and that British residents will have to take their test again in Spain.

The ban on British driving licences only applies to British residents not tourists.