Vehicle Insurance

All motor vehicles used in traffic must be traffic insured, according to the Traffic Injuries Act (1975: 1410). This is typically 3rd party insurance. You can also add additional insurance cover ontop of the 3rd party insurance


What is vehicle insurance

Traffic insurance is a mandatory insurance that pays out in the event of certain traffic-related injuries.

Here are several examples:

  • All those hurt in an accident with an insured car are entitled to compensation for their injuries. Drivers and passengers
  • Compensation for injuries may be reduced if the injured party was a cause for the accident due to gross negligence, or drunk driving.
  • In the event of a accident with another vehicle resulting in property damage, the damage is usually paid by traffic insurance.
  • The damage to the property is compensated by the insurance of the vehicle that is caused the accident.
  • If you crash with something other than a motor vehicle, such as a lamppost, your car's traffic insurance will normally cover the lamppost's property damage.
  • Note that if you cause damage to your own car or products that are being transported, you will not be compensated.
  • You will not be compensated for damage, fire, or theft if the car is only 3rd party insured.

Who should consider purchasing traffic insurance?

The car's registered owner is required to sign a traffic insurance policy for the vehicle

When is it appropriate to sign a traffic insurance policy?

When you purchase a vehicle, you must sign a traffic insurance contract. If the vehicle is already in traffic, the insurance must be signed on the day it is driven into traffic. You do not need to sign a traffic insurance if the car is recorded as being out of traffic or "laid up".

Different type of insurances

Third-party insurance

  • Covers personal injury and damages to other people cars (3rd party
  • 3rd party insurance does not cover damages to your own vehicle
  • Third-party insurance is required by law for all motor vehicles
  • A no-claims bonus might save you money on your third-party insurance premium if you haven't had any claims in a long time.
  • If you are convicted of reckless driving or driving while intoxicated, your insurance company may seek reimbursement (right of recourse).

Partial Insurance

Insurance that only covers a portion of the cost. Partial insurance covers everything covered by third-party insurance plus the following:

  • Theft or damage
  • Fire
  • Window screen damage (Glass repear)
  • Engine damage / failure
  • Legal fees

Fully-comprehensive insurance

Covers everything covered by third-party and partial insurance, as well as:

  • Most natural disasters
  • Scratches and dents.
  • Vandalism.
  • Towing.
  • Damages to your own vehicle

When can you cancel your traffic insurance?

You can cancel or change the vehicle insurance at anytime considering the below points

  • sell the vehicle
  • reports it as out of traffic
  • deregisters the vehicle
  • sign a new traffic insurance with another company

The information must be recorded at the Swedish Transport Agency in order for them to be able to cancel your insurance.

What happens if you don't have insurance on your car?

If you do not have a traffic insurance policy, you will be reported to the Swedish Transport Insurance Association and will be required to pay a traffic insurance cost. The cost is much more than the cost of standard traffic insurance.