Car insurance is compulsory for civil liability and material damage while other insurance benefits are optional. It is prohibited to drive an uninsured car and penalties include:
- Remove license plates and circulation permit for 1 year
- 500 Euros fine per car
You can choose any company you wish to insure your car with and you must be given a copy of the insurance policy while you sign the conclusion of the contract.
If you wish to renew your car insurance while being registered with an insurance company, you need to manage and prepay the premiums before the expiration date.
Premiums for material damage
The insurance company is obliged to increase the premiums for material damage depending to the respective value of the car. Thus, premiums for material damage should be reduced over time while the value of the car is also being reduced.
Furthermore, the insurance company should update you prior to renewal date of the insurance regarding the calculated value of the car. The insurance company must calculate correctly the respective value of your car at the time given and if they have made an inaccurately high estimation, then they are obliged to fully refund the difference of the premium you have paid, followed by a threat to impose administrative sanctions.