The Car insurance in Finland is a contract between a Policyholder and the Insurer that protects the policyholder against financial loss in the event of an accident or loss of the car or other perils such as fire incident. The coverage or protection the insurance company provides is in exchange of payment of insurance premium.
Thus, the Car insurance policy in Finland provides you coverage for; damage to or theft of your car. It also covers your legal responsibility to others for bodily injury or property damage, as well as the cost of treating injuries, rehabilitation. And sometimes lost wages and funeral expenses. Also reimburses you when an accident is caused by a driver who does not have auto insurance—or in the case of a hit-and-run. You can also purchase under insured motorist coverage. This will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.
It is to be noted that third party car insurance (liikennevakuutus) is compulsory in Finland. This is not minding the type of vehicle you use. In fact, motorbikes are under compulsion to buy third party car insurance.
WHAT CAR INSURANCE IN FINLAND COVERS AND THE CIRCUMSTANCES
Car insurance in Finland policy will cover you and other family members named in your policy. This is irrespective of whether you are driving your car or someone else’s car (with their permission). Your policy also provides coverage if someone who is not on your policy is driving your car with your consent.
Your personal car insurance policy only covers personal driving. This is whether you’re commuting to work, running errands or taking a trip. It will not provide coverage if you use your car for commercial purposes—for instance, if you deliver pizzas.
Personal car insurance will also not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.
HOW IT WORKS
Finland as a country permits people to drive their cars registered and as well as insured in other European Union countries for up to ninety days. In essence, After the 90 days, you are supposed to register the vehicle in Finland. And pay tax and insurance.
Similarly, it’s compulsory to register a new car in your name within seven days of purchase. The same rule applies to getting insurance.
In the alternative, you can get a seasonal insurance known as seisontavakuutus if your car is not going to be in use. The Seisontavakuutus plan comes at a cheap price covering the time the car will not be in use.
It is worthy of note that most insurance companies in Finland do not apply no-claim bonuses. And even if a car does not need registration, it is still compulsory to take out motor liability insurance, which is compulsory. The cars without the mandatory liability insurance cannot ne in use in Finland. But if you decide to use the car, the Finnish police are under obligation to take off your license plate.
Comprehensive plan
The comprehensive car insurance policies are not compulsory in Finland unlike the third party car insurance. Therefore, a car owner is at liberty to either take out a voluntary comprehensive insurance policy to improve the extent of the insurance. Comprehensive insurance in Finland vary in scope from one insurance company to another.
When third party motor liability insurance does not apply
There are situations where you might not need a liability insurance cover in Finland and some of them include;
- Where you own a car that doesn’t need registration and not in use on the road.
- Cars that have been withdrawn from use and not in use on the road. Therefore, car owners don’t need third party liability insurance in Finland if their cars have been withdrawn from use car in traffic.
- Cars of small weight or low speed that are exempted from motor liability insurance. For example, motorized machines or tractors that do not need registration. Also because their top structural speed does not exceed 15 km/. Similar machines in same category include combined harvesters and other motorized agricultural machines that do not require registration.
- Trailer that does not need registration in Finland will not need liability insurance.
- In addition, you don’t need it for cars of designs to be solely driven by kids and as such does not require registration.
- Also electric wheelchairs and lightweight cars for use by disabled persons.
Costs
The car insurance companies in Finland offer various insurance services at different rates. Therefore, it is your responsibility to choose the plan that serves your insurance needs.
Similarly, note that while the level of coverage might be the same, the premiums may be different from one company to another. Thus, each company employs a peculiar formula to calculate the risk and probability of filling a claim. Note also that the cost will also depend on other factors such as risk and the value of your car. Others include type, age and safety features. Safety features may include things such as anti-locking brakes on the car.
