Motor third party liability insurance protects people and third parties’ property
If your vehicle causes an accident, the motor third party liability insurance provides compensation if the driver, passenger or other people are injured. The insurance also covers third party property claims.
However, motor third party liability insurance does not cover damage to your own vehicle or property in the vehicle. For this protection you need more car insurance.
Vehicles must have third party cover from the first day
Almost all motor vehicles must be insured. All motor vehicles that are subject to registration must be insured. These are, for example, passenger cars, motorcycles, Class 1 EU mopeds, snow scooters, quadricycles/ATVs, buses and tractors. Class II mopeds are not subject to registration but must have motor third party liability insurance if used.
It is you as the owner of the vehicle that must take out motor third party liability insurance. The insurance should start to apply on the same day as you take over ownership of the vehicle. Plan your purchase so that you can obtain insurance cover in time. Several insurance companies are open at weekends and you can usually take out insurance via their websites.
The insurance companies cannot impose the requirement that you have a personal identity number or coordination number to take out motor third party liability insurance. You can take out motor third party liability insurance even if you have not been assigned a coordination number.
Motor third party liability insurance sometimes applies with excess
The excess means that the owner of a vehicle must bear part of the costs incurred by the vehicle in an accident. This may apply for example if the driver who caused the accident was criminally intoxicated or under the age of 24.
The insurance company normally pays full compensation to the person/persons entitled to compensation. The insurance company will then demand the excess from you as the owner of the vehicle that caused the accident.
If you as owner of the vehicle do not pay the excess, the insurance company may transfer the claim to Swedish Motor Insurers and we will claim the money from you.
Read more about excess in your insurance terms and conditions.