Mandatory insurance of uninsured vehicles

If a motor vehicle registered in the motor register or its trailer is not insured by the ordinary procedure or as compulsory, motor insurance is applied as mandatory insurance (automatic motor insurance).

Compulsory insurance means that the owner or authorised user of the vehicle is obliged to take out insurance, but they choose the insurer. There is no such choice in the case of mandatory insurance.

Mandatory insurance:

  • only concerns vehicles registered in the motor register and their trailers, considering any exceptions from the insurance obligation

For example, the following do not need to have an insurance policy:
-    vehicles of the Defence Forces, the Defence League, the Security Police Board and the Police and Border Guard Board
-    antique vehicles or racing vehicles if the vehicle is not used in traffic
-    an ATV registered in the motor register as an off-road vehicle

  • does not concern vehicles that are not used in traffic and whose motor insurance expired less than one year ago, and the vehicle has not been deleted from the register during this time
  • does not concern vehicles that have been deleted or temporarily deleted from the register or whose register entry has been suspended

For example, the entry of a vehicle in the motor register is automatically suspended if two years have passed from the validity of the vehicle’s compliance with technical requirements and two years have passed from the validity of the last policy.

It pays to avoid mandatory insurance, because:

  • its insurance premium is significantly bigger than in the case of ordinary motor insurance; and
  • in the case of mandatory insurance, the person who caused the damage must pay 640 euros of excess per insurance event.
To whom is mandatory insurance applied? When will mandatory insurance emerge? How can mandatory insurance be avoided? When will mandatory insurance expire? How are people informed about the emergence of mandatory insurance? Insurance premium and payment

To whom is mandatory insurance applied?

Mandatory insurance is applied to clients who fail to take out the compulsory motor insurance stipulated in the Motor Insurance Act. A mandatory insurance client is a person who:

  • has been entered in the motor register if no authorised user of the vehicle has been entered in the register;
  • has been entered in the motor register as the authorised user of the vehicle.

Estonian Traffic Insurance Fund (LKF) is the insurer in the case of mandatory insurance. The mandatory insurance client and LKF do not enter into the relevant contract and the LKF will not issue a policy.

LKF will indemnify the victim for the damage caused with a vehicle with mandatory insurance.

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When will mandatory insurance emerge?

Mandatory insurance will emerge as of the moment when:

  • the vehicle is registered in the motor register, but no contract is entered into;
  • the temporary deletion or suspension of the vehicle in the motor register expires, but no contract is entered into;
  • 12 months pass from the expiry of the motor insurance of the vehicle.
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How can mandatory insurance be avoided?

  • If the vehicle is only used in summer and a motor insurance contract is entered into for this period, then there will be no insurance obligation before the next autumn.

For example, if you only use the vehicle in summer to visit your summer cottage or the vehicle is a motorcycle, etc., you can take out insurance for the summer months only (e.g. from 1 June to 30 September 2017). Automatic mandatory insurance will not be applied in such a case if: a) you enter into a new insurance contract that starts on 1 October 2018 at the latest; b) you delete the vehicle temporarily or permanently from the motor register before 1 October 2018; or c) the entry of the vehicle in the motor register is suspended before 1 October 2018.

  • A vehicle that is not used and will not be used in the future must be deleted from the motor register.
  • A vehicle that will not be used in the near future must be deleted from the motor register.
  • The Road Administration must be informed if a vehicle is sold and the new owner has not registered the vehicle in their name in the motor register (the vehicle will be temporarily deleted from the register until the new owner registers it).
  • If a vehicle is registered in the motor register that will not be immediately used, the vehicle must immediately be temporarily deleted from the register to avoid mandatory insurance.
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When will mandatory insurance expire?

Mandatory insurance will expire when:

  • an insurance contract is entered into for the vehicle;
  • the vehicle is deleted from the motor register;
  • the vehicle is temporarily deleted from the traffic register, incl. if the vehicle has been sold, but the new owner has not registered the vehicle in their name and the previous owner informs the Road Administration about this:
  • the details of the vehicle in the motor register are suspended;
  • the change of owners is registered in the motor register (if the person who acquired the vehicle does not enter into an insurance contract, the mandatory insurance will immediately start again);
  • the authorised user is changed or the entry of an authorised user is deleted from the motor register (if the new person with the obligation of insurance does not enter into an insurance contract, the mandatory insurance will immediately start again).
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How are people informed about the emergence of mandatory insurance?

LKF informs the owner or authorised user about the emergence of mandatory insurance or the possibility thereof:

  • in the case of vehicles registered in the motor register with an ongoing period of exemption from the obligation of motor insurance (i.e. 12 months as of the expiry of the last contract) – before the emergence of the obligation of insurance;
  • in the case of vehicles deleted from the register temporarily or for a specified term – before the emergence of the obligation of insurance;
  • in other cases (e.g. the first registration of the vehicle) – after the emergence of the obligation of insurance.

LKF informs the owner or authorised user about the emergence of mandatory insurance by e-mail or letter. If the insurance obligation is not complied with irrespective of this and at least 30 days have passed from the start of mandatory insurance, the LKF will send the first payment notice of mandatory insurance to the owner or the authorised user by registered letter (by ordinary letter or e-mail in the case of a legal entity).

If the insurance obligation is still not complied with, LKF will issue the next payment notices for 90-day periods.

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Insurance premium and payment

The premium rates of mandatory insurance are established by the Minister of Finance.

If a mandatory insurance client does not pay the insurance premium, the LKF will transfer the premium claim to a bailiff.

See also disputing mandatory insurance payment notices.

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