Can my insurer refuse to cover an accident if I was driving in another EU country?

What the Law Says

EU law ensures that valid motor insurance issued in one Member State remains effective when driving temporarily in another EU country.

Under Directive 2009/103/EC, every vehicle registered in an EU country must have compulsory third-party liability insurance that is valid throughout the EU. This means your policy must cover accidents occurring in any other EU Member State while you are lawfully driving there — for example, on holiday or for short business trips.

The directive explicitly prohibits insurers from excluding coverage based solely on the location of the accident within the EU. It also requires insurers to issue a 'Green Card' (an internationally recognised proof of insurance) upon request, confirming that the policy meets minimum EU coverage requirements.

Member States must ensure that victims of accidents caused by visiting drivers can claim compensation directly from the insurer’s representative (the 'claims representative') established in their own country — no matter where the accident occurred.

Statutory Text

Every vehicle registered in a Member State shall be covered by insurance against civil liability in respect of the use of that vehicle in the territory of the Community.

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

Statutory Text

The insurance referred to in Article 3 shall cover liability for damage caused in the territory of any Member State.

— Directive 2009/103/EC, Art. 4 — Territorial scope

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