Motor Insurance Directive
The EU Motor Insurance Directive 2009/103/EC is intended to help EU residents involved in a road accident in another EU country.
Under the Directive, subscribers to compulsory motor insurance policies in all EU countries are covered for motoring throughout the EU.
Motor insurance premiums differ from one EU country to another, mainly due to differences in risk assessments and compensation schemes.
Vehicles should be registered in the country of residence of the policy holder and/or vehicle owner. Provided their registration is in order, they may be insured by an insurer established in the country of registration or in any other EU country. Insurers providing cross-border insurance services must fulfil certain formalities under the EU insurance rules. They must also be willing to offer a contract.
EU residents looking to take out motor insurance are strongly advised to compare offers from different insurers in order to find the best deal in terms of premiums and conditions. Their best aid in comparing deals is the Internet – insurers providing services in EU countries are usually listed on national supervisors’ websites.
- obliges all motor vehicles in the EU to be covered by compulsory third party insurance (all passengers are covered, throughout the EU)
- abolishes border checks on insurance, so that vehicles can be driven as easily between EU countries as within one country
- prescribes minimum third-party liability insurance cover in EU countries . These minimum amounts are periodically reviewed: they were adapted in 2010 (Notice regarding the adaptation in line with inflation of certain amounts laid down in the Motor Insurance Directive) and in 2016 (Communication COM(2016)246 final).
- specifies exempt persons and authorities/bodies responsible for compensation
- introduces a mechanism to compensate local victims of accidents caused by vehicles from another EU country
- requires the quick settlement of claims arising from accidents occurring outside the victim’s EU country of residence (so-called “visiting victims”)
- entitles policy holders to request a statement concerning the claims (or absence of claims) involving their vehicle(s) during (at least) the five years preceding the contract. The insurer must provide this statement within 15 days. This is to enable policy holders to switch more easily from one insurer to the other.
The directive does not regulate:
- issues of civil liability and the calculation of compensation awards – these are decided by individual EU countries. (The Commission cannot interfere in disputes between policyholders and victims of road traffic accidents and insurers or their representatives.)
- so-called “comprehensive cover” (for physical injury of the driver, material damage to vehicles, vehicle theft, etc).
Studies and reports
- Retail Insurance Market Study (2010)
The study covers:
- third party liability insurance (M3PL)
- comprehensive motor insurance
- home/household insurance.
It examines the market structure, cross-border activity, evolution in premiums and innovation in insurance pricing across the whole of the EU27, and offers comparisons to either the USA/individual US States.
- Compensation of cross-border victims in the EU (2009)
Compensation for victims of cross-border road traffic accidents in the EU:
- comparison of national practices
- analysis of problems
- evaluation of options for improving the situation.
Press release and 2006 report on certain issues relating to motor insurance (claims representatives and legal expenses)
European Parliament resolution of 2 September 2008 on certain issues relating to motor insurance
Press release and 2007 report on certain issues relating to motor insurance (compensation bodies and trailers) (SEC(2005)1777)
- Commission Implementing Decision 2011/754/EU
- Commission Decision 2007/482/EC
- Commission Decision 2005/849/EC
- Commission Decision 2004/332/EC
- Commission Decision 2003/564/EC
- The version of the Internal Regulations which was adopted by the Council of Bureaux in Crete on 30 May 2002 and which was published in the OJEU with ref No L192 on 31 July 2003 is no longer in force since it was replaced by a new version which is currently in force and which is published on the website of the Council of Bureaux under the following link: http://www.cobx.org/en/index-module-orki-page-view-id-185.html
- Commission Decision 2003/20/EC