Is car insurance mandatory?

Satunnainen

Car insurance is an important part of a motorist’s financial security, but is it mandatory? The answer to this question depends on what type of car insurance you are talking about. There are two main types of car insurance in Finland: traffic insurance and comprehensive insurance. Let’s take a closer look at these.

Motor insurance

Motor insurance is mandatory in Finland for all motor vehicles that are registered and used in traffic. This insurance covers damages that the driver of the vehicle causes to other people, their property or other vehicles. However, motor insurance does not cover damage to your own vehicle or the driver’s own personal injuries.

  • Compulsory: Motor insurance is statutory and taking it out is mandatory for all vehicle owners and holders.
  • Coverage: The insurance covers the other party’s personal injuries and property damage, but not your own damages.
  • Sanctions: Driving without motor insurance is illegal and results in fines and possible other sanctions.

Comprehensive insurance

Comprehensive insurance is a voluntary insurance that offers broader protection than motor insurance. There are different types of comprehensive insurance, and they can cover, for example, damage to your own vehicle, theft, vandalism, fires and damage caused by natural phenomena.

  1. Voluntary: Taking out comprehensive insurance is not mandatory, but it is recommended especially for new and valuable vehicles.
  2. Coverage: Comprehensive insurance can cover a wide range of damages, including damage to your own vehicle and theft.
  3. Customizability: There are different types of comprehensive insurance, and they can be tailored to meet the vehicle owner’s needs and budget.

Summary

In summary, it can be stated that traffic insurance is mandatory for all motor vehicles in Finland, while comprehensive insurance is optional, but recommended additional coverage. Not having motor insurance can lead to fines and other sanctions, while taking out comprehensive insurance is up to the owner and depends on the value of the vehicle and the owner’s risk tolerance.

You can read more information about car insurance and their obligation, for example, on Finlex’s website or < a href="https://www.liikennevakuutuskeskus.fi/" target="_blank">From the website of Liikennevakuutuskeskus.

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