Hi, I moved to Germany last year and will stay here for the foreseeable future. I want to rent a car in the UK this summer when I go back to visit. Am I right in understanding that in order to rent a car with a valid insurance policy I need to rent with a German licence as this is where my residence is?

So I therefore need to exchange my UK licence for a German one and when renting make sure I use a German bank account registered to my correct German address so that the insurance policy is valid?

I assume there isn't a way around this keeping the UK licence as the DVLA can't handle non-UK addresses and therefore my current licence is effectively invalid.

Thanks for any help!

Your EU license is valid in UK and must reflect your current residence.
You will normally surrender the UK one (but make a note of your details or better still make a photocopy).
You can always apply for a new one easier in the future that way if you return to UK.

Note that most UK car hire companies need a CREDIT card when you rent and not a debit type card .

Agree with wot is said above about licences.
I've not had problems using my debit card for car hire. Mine has raised numbers and I have been told that this makes the difference.
When I have hired in the UK I have used
icarhireinsurance.com
which covers the excess that car hire co. try to sell you at a much better (cheaper) rate.
P:S I don't hire cars any more 'cos they don't like my age!!!!!!!!!