This article covers Polish regulations and market practice. The principles apply elsewhere, but check the rules in your country.
From 1 January 2021 the penalty for driving without third-party motor insurance went up. Even a small delay can mean having to pay a hefty fee. How much are the new penalties?
Penalties for no third-party insurance in 2021
The size of the penalty depends on two factors: first, the type of uninsured vehicle, and second, how long we are "late" with the payment.
Vehicle owners who drive without third-party insurance for only a few days are treated somewhat more leniently, although the penalty still remains high. For passenger cars, the penalties are:
- PLN 1,120 if the car has no insurance for 1 to 3 days
- PLN 2,800 if the car has no insurance for 4 to 14 days
- PLN 5,600 if the car has no insurance for more than 14 days.
By comparison, in 2020 the maximum penalty was PLN 5,200, i.e. twice the gross minimum wage. The rise in the minimum wage to PLN 2,800 gross in 2021 also means a rise in the insurance penalty rates. For lorries, buses and tractor units the penalties are higher and amount to:
- PLN 1,680 if the vehicle has no insurance for 1 to 3 days
- PLN 4,200 if the vehicle has no insurance for 4 to 14 days
- PLN 8,400 if the vehicle has no insurance for more than 14 days.
The highest rate is again tied to the minimum wage, in this case three times it. For other vehicles, such as motorcycles, the penalty is PLN 190 (1 to 3 days), 470 (4 to 14 days) and 930 (over 14 days) respectively.
Additional costs?
Beyond the penalty imposed by the Insurance Guarantee Fund (UFG), using a car without valid third-party insurance can involve additional costs. First, a fine. Second, the need to cover the cost of any damage caused in a bump or accident out of your own pocket. If the driver causes an accident, the UFG pays the injured parties the sum due to them... and then seeks recovery of the appropriate amount from the person at fault. That amount can vary, from a few hundred PLN to over a million if several vehicles were written off in the incident. As you can see, not buying third-party insurance simply does not pay. The premium itself is usually far lower than the penalty alone, and causing an accident without valid insurance means an enormous financial loss.
What to do so as not to forget about third-party insurance
If you own a car that has been insured, the insurance is usually renewed automatically; all you need to do is pay the new premium. The insurer also usually sends a notification that the first insurance period is coming to an end. Exceptions include a situation where you terminate the contract, you have bought a used car or you hold short-term insurance. For a fleet, especially a large one, managing insurance can be more problematic. In such cases fleet systems can help. Thanks to the alert system (https://www.navifleet.pl/blog/kontrola-floty-firmowej-dzieki-alertom-i-powiadomieniom-z-systemu-navifleet/) the fleet manager can receive notifications, e.g. that the third-party insurance premium needs paying or that the comprehensive insurance period for a given car is coming to an end.
