Please note
We are working on a new version of the portal that will make it easier for you to find the information you need to exercise your rights in the EU. At present, therefore, the information available in these pages may not be up-to-date. To find out about your rights during this transitory period you can send your question to Europe Direct.
Car insurance (European Union)
- Your rights and obligations
- Where to insure your car
- Travelling within the EU
- In the event of an accident in another country
- Legal references
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Your rights and obligations
- You are required by law to take out motor liability insurance. The insurance certificate or “green card” issued by your insurer is proof that you have met your obligations as regards civil liability insurance for motor vehicles.
- Your national insurance policy covers your civil liability all over the European Union, no matter where the accident happens. You may not be required to pay a supplement for third-party liability insurance when travelling within the EU. However, if you also want insurance against other hazards, such as fire or theft abroad, the insurance company is entitled to charge a supplement if your insurance contract is limited to the country in which you reside.
- Your insurance company cannot cancel your cover if you temporarily stay in another EU country. Certain practices, such as inserting clauses to the effect that the insurance contract will be cancelled if the vehicle remains outside the country of habitual residence, are prohibited.
- EU directives guarantee minimum liability coverage of:
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At present |
EUR 350 000 for personal injuries and EUR 100 000 for material damage caused to third parties |
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By January 2010 |
EUR 500 000 per victim or EUR 2 500 000 per claim for personal injuries and EUR 500 000 for material damage |
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By June 2012 |
EUR 1 000 000 per victim or EUR 5 000 000 per claim for personal injuries and EUR 1 000 000 for material damage |
- Note that if the actual damage exceeds this statutory minimum in the country of accident and you have not agreed higher cover in your policy, you will have to pay the difference. Therefore, you might want to check whether your insurer offers unlimited liability cover, in particular for personal injuries.
- Motor liability insurance covers all passengers travelling in the vehicle, other than the driver, at least in respect of personal injuries suffered. Passengers cannot be excluded from insurance cover because they knew or should have known that the driver was either drunk or under the influence of drugs at the time of the accident.
Where to insure your car
- You can insure your car with any company licensed to provide motor insurance cover in the country where your vehicle is registered. This applies both to the compulsory third-party liability insurance and to the optional insurance covering supplementary risks (such as theft, fire, etc.) and known as “all-risk”, “kasko” or “omnium” insurance.
- You can buy motor liability insurance in another EU country if the insurance company satisfies the following conditions:
- it must be a member of the national motor vehicle insurers’ bureau and the guarantee fund of the country in which your vehicle is registered;
- it must have an establishment in the country in which your vehicle is registered or a designated representative authorised to settle claims in that country;
- it must notify the insurance supervisory authority in the company’s home country of its intention to provide third-party liability insurance in the country where the vehicle is registered.
Travelling within the EU
The number-plate of your car is taken as evidence that you are insured. However, you are strongly advised always to have the “green card” with you because this will make things easier in the event of an accident abroad.
TopIn the event of an accident in another country
It is always advisable to use the European accident statement to record the facts adequately. This standard document, identical in most European countries, must be signed by both parties and simplifies settlement of the claim.
If you are to blame
The injured party will contact his or her national motor vehicle insurance bureau in order to claim compensation. This bureau will subsequently settle the claim with the bureau of the country where the vehicle is registered. This system is managed by the “green card organisation” (officially called the Council of Bureaux), which operates in 44 countries (including all EU countries).
If you are the victim
If you are the victim of a car accident in another country, you will be indemnified in accordance with the liability and compensation rules in force in that country and not with those in your country of habitual residence.
You have several choices as to where to submit your claim for compensation:
- to the foreign insurer of the party liable; or
- to the green card bureau of the country in which the accident occurred; or
- to the claims agent appointed to represent the foreign insurer of the party liable in your country of residence. This option gives you the advantage of settling the claim in your own language.
In all these cases, you must be given a reply to all the points made in your claim within three months, stating the reasons. If the insurer of the party liable has no claims agent in your country or you have not received a reply, stating the reasons, within three months of your request, you have the right to contact the national compensation body in your country. The compensation body has to take action and provide you with a reply and reasons within two months. Likewise, you can apply to the compensation body in cases where it was not possible to identify the foreign vehicle or the foreign vehicle was not insured.
To find the information necessary for settlement of your claim, you can contact the national information centre, which can tell you:
- the name of the insurer of the party liable;
- the insurance policy number; and
- the identity of the claims agent appointed by the insurer of the party liable.
