Why is motor liability insurance obligatory?
Motor liability insurance safeguards the innocent party's legal protection and compensation. The protection given by motor liability insurance in the new law remains as broad as before.
When compared internationally, Finland has very comprehensive motor liability insurance cover. Not even all the green card countries have cover for the driver (i.e. where the driver causing the accident receives compensation for their personal injuries).
The risk of accident when in traffic is bigger than in many other areas of life. Statutory motor liability insurance gives comprehensive insurance cover. It compensates the personal injuries of both the innocent party and the party causing the accident. The innocent party who has been injured is covered both for personal injury and material damage. Motor liability insurance gives comprehensive liability insurance coverage also to the party causing the accident.
The fact that motor liability insurance is obligatory, that is to say statutory, is also due to international legislation, i.e. the Motor Insurance Directive.
What are the benefits of voluntary comprehensive insurance?
Motor liability insurance does not cover personal injury and material damage suffered by the owner or holder of the vehicle that caused the accident. This damage can be compensated through voluntary vehicle insurance, i.e. comprehensive insurance. In addition, with comprehensive insurance there is the possibility to have extra cover against vandalism, fire or theft.