Civil liability insurance for motor vehicles

KEY POINTS

Compulsory insurance and scope

The directive requires compulsory third-party liability insurance for the use of vehicles normally based in a Member State and sets out the definitions of a vehicle and the use of a vehicle. Specifically:

• ‘vehicle’ means any motor vehicle that is exclusively propelled by mechanical power on land and that exceeds certain speed or weight thresholds; this includes trailers but excludes wheelchair vehicles that are exclusively intended for use by persons with disabilities;
• ‘use of a vehicle’, in line with the case-law of the Court of Justice of the European Union, means any use consistent with its function as a means of transport at the time of the accident, irrespective of its characteristics, the terrain on which it is used or the fact that it is stationary or moving.

Furthermore, Directive 2009/103/EC does not apply to use of vehicles in motor-sport events and activities taking place in restricted and demarcated areas, provided that the Member State requires alternative insurance or guarantee.

Minimum amounts of cover

Directive 2009/103/EC prescribes amounts of minimum third-party liability cover in all Member States.

Specifically, minimum amounts of cover are currently harmonised for personal injuries at €6 450 000 per accident, irrespective of the number of injured parties, or €1 300 000 per injured party¹ and for damage to property at €1 300 000 per accident.

These amounts are subject to review at least every five years, from 22 December 2021, based on the Harmonised Index of Consumer Prices (HICP) under Regulation (EU) 2016/792 (see summary).

Prohibited exclusion clauses

Directive 2009/103/EC provides that any statutory provision or contractual clause contained in an insurance policy must be deemed to be void with respect to claims from injured third parties when it excludes from insurance cover the use or driving of vehicles by:

• persons not authorised to do so;
• persons not holding a driving licence;
• persons who are in breach of statutory technical requirements on the condition of the vehicle.

Minimum requirements for claims settlement

The insurer or its claims representative is required to produce a reasoned response or a reasoned offer to the injured party within three months from the date the latter submitted a claim for compensation.

Checks on insurance and free movement

Directive 2009/103/EC abolished systematic border checks to facilitate cross-border travel.

Only proportionate, non-discriminatory checks on insurance are allowed, without stopping vehicles (e.g. through automatic number plate recognition).

Compensation bodies

Each Member State must designate a compensation body for providing compensation for damages to property or personal injury caused by uninsured or unidentified vehicles.

Insolvency of insurers

Directive (EU) 2021/2118 introduced protection of accident victims in cases of insurer insolvency. Each Member State is required to designate a body entrusted with compensating injured parties residing in its territory where the insurer of the vehicle that caused the accident became bankrupt. In case the insurer is based in another Member State, the compensating body may then recover the sums paid from the equivalent body in the insolvent insurer’s home Member State.

Protection of visitors

• Victims of accidents occurring outside their Member State of residence (so-called visiting victims) may claim compensation in their own Member State through the vehicle insurer’s local claims representative. They are also entitled to claim compensation from the compensation body in their Member State of residence if the insurer or its claim representative does not reply to the claim or if a claims representative was not appointed in their Member State.
• Insurers must appoint claims representatives in every Member State, and national information centres provide information to injured parties to help them identify the insurer of the vehicle that caused the accident.

Right to receive a claims history statement

Policyholders are entitled to request at any time a claims-history statement covering at least the preceding five years of the contractual relationship. The insurer is required to provide that statement within 15 days of the request.

Following the adoption of Implementing Regulation 2024/1855 on claims history statements, as of 24 July 2025, both the form and the content of the claims history statement are harmonised. Insurers are required to treat statements issued by insurers from other Member States as equal to the statements issued by domestic insurers.

Limitations

Directive 2009/103/EC does not regulate issues of civil liability or the award of compensation, which remain a matter for Member States. It also does not cover comprehensive insurance for the driver’s own injuries or damage to their vehicle.