Compulsory road traffic insurance
What is ‘traffic insurance’?
Traffic insurance is compulsory insurance (sometimes called 'third party insurance') which provides compensation in the event of certain kinds of road traffic accident. Some examples:
- Anyone injured in an accident involving an insured vehicle will receive compensation for personal injury. This applies to both drivers and passengers.
- This compensation may be reduced if the injured person has knowingly helped bring about the injury through intent, gross negligence or other negligence in conjunction with drink-driving.
- As a basic rule, if a collision with another vehicle causes property damage, this damage will be paid for by the traffic insurance. If you have caused the accident, your insurance will compensate the damage. If the person with whom you have collided is responsible for the accident, this person's traffic insurance will compensate the damage.
- If you collide with something other than a motor vehicle (for example, a lamp post), the property damage is usually compensated by your traffic insurance.
Please note that you will not receive compensation for
- damage to your own vehicle,
- goods being transported if you have caused the damage yourself.
All motor vehicles used on the road must be insured under the Motor Traffic Damage Act (1975:1410). You can take out other vehicle insurance (comprehensive or third party, fire and theft insurance) if you so wish.
If the vehicle only has traffic insurance, you will not be compensated for, for example, malicious damage, fire or theft.
Who should take out traffic insurance?
The registered owner of the vehicle must take out traffic insurance.
When should you take out traffic insurance?
You should take out traffic insurance when you become the owner of a motor vehicle. This insurance must be taken out from the day on which the vehicle is used on the road (licensed for use) or immediately if the vehicle is already on the road. You do not have to take out traffic insurance if an off road notification has been made for the vehicle.
When can you give notice terminating your traffic insurance?
You can give notice terminating your insurance if you:
- sell the vehicle,
- make an off road notification for the vehicle,
- deregister the vehicle,
- take out new traffic insurance with another company.
One precondition for terminating your insurance is that the current vehicle details are registered with the Swedish Transport Agency.
What happens if your vehicle is uninsured?
If you have not taken out traffic insurance, you will automatically be reported to the Swedish Association of Motor Insurers and will have to pay a charge. This charge is considerably higher than the premium that you would pay for ordinary traffic insurance.