The premium can be as much as half the value of the car, for travelling in certain more 'dangerous' areas. Most countries require you to take out a third party insurance at the border, ignoring any other insurance you may already have. This, in simple terms, is a 'passport' for your vehicle. The Carnet allows an individual to take a vehicle into a country where custom duties may normally be payable on importation of vehicle, even for a short stay. To get your Carnet, you will have to provide a guarantee that should you sell your vehicle, the country where it is sold can contact the motoring organisation and demand payment in lieu of the import duty that they have missed out on.
Banks can provide the indemnity, but require something as collateral, cash or house deeds.
Otherwise, an insurance company will put up the necessary bond in return for a non- refundable premium. Some countries require the bond to be as much as 4 or 5 times the value of the car. Before setting out, make sure you have up to date information about visa requirements for the countries you intend to visit. Just turning up at a border without a visa can be a mistake and the journey back to get one can be lengthy. Borders often operate on very strange working hours, and they are not the places to spend the night waiting for opening time.