Medic with a touring car in Caribbean island (8)
I believe the answer is:
dominica
'caribbean island' is the definition.
(I've seen this before)
'medic with a touring car' is the wordplay.
'medic' becomes 'doc' (doctor).
'with' means one lot of letters go next to another.
'touring' means one lot of letters goes inside another (tour can mean to go around).
'car' becomes 'mini' (Mini Cooper).
'doc'+'a'='doca'
'doca' enclosing 'mini' is 'DOMINICA'.
'in' is the link.
(Other definitions for dominica that I've seen before include "country" , "Miss Sunday" , "former British colony" , "Largest of the Windward Islands" , "Caribbean island nation" .)