Is car insurance mandatory in all EU countries?

What the Law Says

EU law requires all Member States to ensure that civil liability for damage caused by motor vehicles is covered by insurance. This ensures victims can claim compensation across borders.

The core legal requirement comes from Directive 2009/103/EC of the European Parliament and of the Council of 16 September 2009 relating to insurance against civil liability in respect of the use of motor vehicles. It harmonises national rules to guarantee minimum protection for victims of road accidents.

All EU countries must require compulsory insurance for any vehicle normally based in their territory and used on public roads. The insurance must cover personal injury and property damage to third parties.

Member States may set higher minimum compensation limits than the Directive’s baseline — but not lower. The Directive does not fix a single monetary amount; instead, it mandates that national limits be 'sufficient' and regularly reviewed.

Statutory Text

Every Member State shall take all appropriate measures to ensure that civil liability in respect of the use of vehicles normally based in its territory is covered by insurance.

— Directive 2009/103/EC, Art. 3 — Compulsory insurance

Statutory Text

The insurance referred to in Article 3 shall cover liability for personal injuries and property damage suffered by third parties.

— Directive 2009/103/EC, Art. 4 — Scope of cover

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