Proposed changes

The EC said that it is proposing the following changes to the current EU motor insurance rules, for the following reasons:

Insolvency of an insurer: If the insurer of the vehicle responsible for an accident is insolvent, victims will be rapidly and fully compensated in their Member State of residence. In cross-border situations, this will ensure that the ultimate financial responsibility is borne by the insurance sector of the home Member State of the insurer, while allowing for quick compensation to victims.
Claims history statements: Insurers will have to treat claims history statements issued by an insurer in a different Member State equally to those issued domestically. This should ensure that citizens purchasing insurance abroad can benefit from more advantageous insurance premiums, on the same level as domestic consumers.
Uninsured driving: Member States' powers to combat uninsured driving will be reinforced. This should help to tackle uninsured driving, which increases premiums for insured motorists.
Minimum amounts of cover: EU citizens will benefit from the same level of minimum protection when travelling in the EU. The proposal sets out harmonized minimum protection levels for personal injury and material damage across the EU, as current minimum levels differ slightly between Member States.
Scope: To enhance legal certainty, the proposal incorporates recent case law of the Court of Justice of the European Union into the Directive. In particular, the rules now clarify that accidents caused during the normal use of a vehicle for the purpose of transportation, including its use on private properties, are covered.

The first EU Directive on motor insurance was adopted in 1972, with the objectives of protecting victims of motor vehicle accidents and facilitating the free movement of motor vehicles between Member States. Subsequently, five motor insurance directives progressively strengthened the protection of EU citizens. In 2009, those were consolidated into one EU Motor Insurance Directive (Directive 2009/103/EC).

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European Commission proposes stronger motor vehicle insurance rules

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