It is compulsory that vehicle insurance in Finland must include Third-party liability as a minimum coverage requirement. Similarly, the drivers must mandatorily drive along with their driving license, passport and vehicle registration forms. However, before for insure your vehicle in Finland, you have to ensure that the license plate is one with its registration in Finland. And if you plan to travel from your home country to Finland with your vehicle or ship it to Finland, you will also ensure that your subsisting car insurance is valid for use in Finland.
Upon registration of your vehicle in Finland, you will be permitted to drive in the country until the road tax renewal is due. Note that this is not applicable if the period before renewal is longer than 3 months. And after this grace period, you will have to purchase Finnish vehicle insurance policy.
Types of Vehicle Insurance in Finland
Insurers in Finland offer two types of insurance and they include;
Third-party liability and
Comprehensive insurance
Third-party Vehicle Liability Insurance
The third-party vehicle liability insurance is the minimum legal requirement for all drivings in Finland. The policy covers any accidental damage to another’s vehicle or property. Thus, neither you nor your vehicle will enjoy coverage when you cause an accident. It only covers the damages to third parties including their medical expenses. Third party vehicle liability insurance in Finland is a mandatory insurance for all vehicles used in traffic as a legal requirement.
Under the Finland Motor Liability Insurance Act, all vehicles used in traffic must be 100% insured with vehicle liability insurance. And without this insurance policy, the vehicle cannot enjoy registration and even inspection. The obligation to insure is applicable to owners and keepers of the vehicle. Therefore, if you use a motor vehicle of any kind in Finland, you must have the vehicle liability insurance (liikenevakuutu)). Also after purchasing a vehicle in Finland, you are under obligation to register it within 7 days and also purchase insurance. But if the vehicle is not going to be in continuous,e you can get a type of “seasonal” insurance called seisontavakuutus which is usually at a low rate.
The third party vehicle liability insurance must be purchased for the following; Cars ,Motorbikes and motocross bikes, Mopeds, Motorised bicycles), Snowmobiles, ATVs, Tractors, Power-driven work machinery, Semi-trailers and trailers, Caravan trailers, Lightweight trailer
Comprehensive vehicle insurance
The comprehensive vehicle insurance policies in Finland are not mandatory 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.
Cost
There are several factors which can influence the cost of vehicle insurance policy in Finland. These factors can include but not limited to the value of your car, where you, your age, driving experience, claim history etc. consequently, most insurance companies in Finland offer a 5% discount in premiums for each year without making a claim. 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.
Conclusion
In Finland, Most of the vehicle Insurance customers have leant to buy extra insurance coverage for their vehicles. This they do by complementing the vehicle Liability insurance with a comprehensive vehicle insurance policy. The comprehensive vehicle insurance plan is an optional vehicle insurance policy, especially good for new cars but with the widest coverage. The policy will compensate for loss and damage to your vehicles, third parties’ and as well as the medical bills.
