What does motor liability insurance cover?

Motor liability insurance compensates all parties for their personal injuries and external parties for property damage. When vehicles collide, the damage to the innocent party's vehicle is compensated.

What does motor liability insurance not cover? The motor liability insurance does not compensate for damage to the policyholder's vehicle or to property in that vehicle. This damage can, for example, be compensated through voluntary vehicle insurance (comprehensive insurance).

It is a prerequisite for the payment of compensation for the traffic damage that the damage was caused by using the vehicle in traffic. As a rule, the damage is compensated for in full even if it was not caused by anyone's carelessness. However, it is a prerequisite for compensation in a situation where vehicles have collided that the damage was caused by the driver's or the owner's carelessness, driving in breach of traffic rules or improper condition of the vehicle. In collision situations, the liability for compensation can also be split between the parties pro-rata to their degree of guilt.

If the traffic accident has occurred in conjunction with a traffic violation, the injured party can claim compensation for the damage and injuries they have suffered directly from the insurance company of the person who caused the accident. It is not necessary to take the claim to court; the injured party can turn directly to the insurance company. If the person who caused the accident or their insurance company cannot be identified, or the accident is caused by a foreigner, claims can be taken to the Finnish Motor Insurers' Centre.

The damage is divided into personal injuries and property damage.

The Finnish Motor Insurers' Centre handles traffic accidents caused by uninsured and unknown vehicles, those exempted from motor liability insurance, foreign vehicles, vehicles holding temporary and frontier motor liability insurance policies, as well as reindeer damage caused by vehicles. Read more from page Damage compensated for by LVK.

Instructions on how to file an accident statement and claim compensation from the Finnish Motor Insurers' Centre are on page Claim compensation from LVK.

The State Treasury compensates for damage caused by vehicles owned by the State.