The provisions regarding compensation for property damage are contained in the act governing motor liability insurance and in the Tort Liability Act.
More detailed instructions for determining the compensation for property damage are available In Finnish at the website of the Traffic Accident Board. www.liikennevahinkolautakunta.fi. Basically, any property damage may qualify for compensation.
The owner of a damaged motor vehicle is entitled to receive compensation (i.e. the repair costs or the corresponding amount of money). If the motor vehicle cannot be repaired at reasonable expense, the insurance company shall pay compensation matching the valid value of the vehicle. In that case, the motor vehicle is assigned to the insurance company. The decrease in value of the damaged vehicle will not be compensated for.
Motor liability insurance may compensate for the rental costs of a substitute vehicle if the need for a substitute vehicle is considered well grounded, e.g. due to the person's profession.
Motor liability insurance covers 94% of the total rental cost of a substitute vehicle. The compensable rental costs do not include the excess elimination fee paid for the risk of damage. In addition to compensating the rental costs, no other compensation for period of non-use is paid for the rental period.
The remaining share, i.e. 6% of the rental costs corresponds, on average, to savings in the vehicle's operation costs during the vehicle's period of non-use.
The rental costs of a vehicle substituting a maintenance lease vehicle are paid in full.
Compensation for the period of non-use is paid for the motor vehicle's repair time on the basis of the price of the vehicle. When determining the amount of compensation, the price of the vehicle is deemed to be the cost of acquiring a new vehicle at the time of the accident if the vehicle is no more than five years old. If the vehicle is older than five years, the fair value of a similar vehicle at the time of the accident is regarded as the price of the vehicle.
It is a prerequisite for paying compensation that the company has been provided with the repair shop's certificate for the period of non-use.
If the vehicle is written off, compensation for non-use is payable for a maximum of 14 days. For heavy equipment, compensation is paid for 30 days or for the time spent on obtaining and equipping a new vehicle.
Motor liability insurance may compensate for the expenses incurred when towing a vehicle damaged so that it no longer is roadworthy.