Car Insurance In Austria: What You Need To Know

If you're planning to drive in Austria, it's important to know the local rules and regulations. One key requirement is that all vehicles must be insured with third-party liability insurance (known as Haftpflichtversicherung in Austrian) before they can be registered and driven on public roads. This type of insurance covers any damage caused to others in an accident. Additionally, if you're bringing your own car into the country, you'll need to register it at a vehicle registration office and obtain the necessary insurance from an authorised Austrian insurer. The cost of car insurance in Austria can vary depending on factors such as driving experience and engine size, but it is generally considered expensive compared to other countries.

Third-party liability insurance

In Austria, third-party liability insurance is a compulsory type of car insurance. This insurance covers damage to other people's health or property in the event of an accident. It is required by law to register your car.

The minimum insured sum for passenger cars is €7.6 million, with €6.3 million set aside for personal injury and €1.3 million for property damage. If the damage exceeds the insured sum, the driver at fault must pay the difference. Many policies allow for an increase in the insured sum by paying a higher premium.

The cost of third-party liability insurance in Austria varies depending on factors such as driving experience, engine size, and location. Overall, Austria is considered expensive for car insurance, with monthly premiums ranging from €60 to €150.

In addition to third-party liability insurance, there are two other main types of car insurance in Austria: partial coverage and full coverage. These are optional but often recommended. Partial coverage includes protection against break-ins, shattered glass, and damages caused by animals, fire, or theft. Full coverage includes all the benefits of partial coverage, plus damages to your car after accidents.

Partial coverage insurance

In Austria, car insurance is mandatory if you own a car. The only compulsory insurance is third-party liability insurance, which covers damage to other people's health or property in an accident. However, there are optional insurance types available, such as partial coverage insurance and full coverage insurance.

When choosing a partial coverage insurance provider in Austria, it is recommended to consider several factors. These include the breadth of coverage, the amount of excess you need to pay, whether no-claims reductions are offered, the company's reputation, the ease of making claims, and the availability of roadside assistance. By carefully evaluating these factors, you can select the most suitable insurance provider for your needs.

While partial coverage insurance is optional, it can provide valuable protection for your vehicle and give you peace of mind. By understanding the specifics of this type of insurance, you can make an informed decision about whether to include it in your overall car insurance plan.

Full coverage insurance

In Austria, car insurance is mandatory if you own a car. The only compulsory insurance is third-party liability insurance, which covers damage to other people's health or property. However, full coverage insurance is also an option for car owners.

In addition to these standard coverages, full coverage insurance in Austria may also include optional extras such as 24-hour roadside assistance, which can be extremely useful if you ever find yourself in need of assistance on the road.

When deciding whether to opt for full coverage insurance, it is important to consider your premium, deductible, and savings. If your premium is high relative to your car's value, or if your car is worth less than your deductible, full coverage insurance may not be financially prudent. However, even if your car is paid off, it may still be a good idea to have full coverage if you do not have the financial means to replace your vehicle in the event of an accident or total loss.

The Bonus-Malus system

Car insurance in Austria works on a Bonus-Malus system, which is a Latin term that translates to 'good-bad'. This system is designed as an incentive for accident-free driving and influences the premium amount for car insurance. It is a grading system that takes into account individual driving histories and rewards safe driving behaviour.

When a driver enters the system, they start at level 9 (the basic level) and pay the full premium for their third-party liability insurance. Each year that passes without an accident results in a downgrade by one level, which leads to a reduction in the premium amount. Conversely, if a driver causes an accident, their premium will increase as they move up three levels. This flexible system allows insurance companies to reward safe drivers with lower premiums while also accounting for individual differences in driving experience and history.

The Austrian Bonus-Malus system has 18 levels in total, and drivers can request a record of their claims history from their insurer to understand their current standing. This system is a common way for insurance companies to incentivise safe driving and provide customised premium amounts based on individual driving records.

Insurance brokers and companies

In Austria, third-party car insurance, known as Haftpflichtversicherung, is mandatory. You can arrange this with the help of an insurance broker (Versicherungsmakler) or an insurance company (Versicherungsunternehmen).

The Insurance Association Austria regulates car insurance in Austria. You will need to buy Haftpflichtversicherung (third-party liability) insurance before you can drive. This covers damage to others in an accident. However, many companies that provide car financing in Austria will require more comprehensive insurance.

The vehicle owner (policyholder) is covered by insurance, as well as any additional authorised drivers. Trailers must be insured and registered separately from cars. You may insure up to three cars on the same license plate, as long as they are the same type of vehicle.

There are several insurance companies in Austria, including:

• Allianz
• Grawe
• Nexible
• VAV
• Zurich

The insurance must be purchased from an insurance company that is entitled to provide third-party liability insurance services in Austria. The insurance covers damage caused by your vehicle to another car, people, property, and any financial loss. If you are at fault for an accident, your own third-party liability insurance will cover the cost of the damage incurred by the other driver, but not your own damage costs. For this, you will need fully comprehensive insurance.

Types of insurance

There are three main types of car insurance in Austria, but only third-party liability is compulsory. The other types are optional but often advisable.

Third-party liability insurance

Third-party liability insurance is required by law to register your car. It covers damages to other people’s health or property.

Partial coverage

Partial coverage is optional and additional. It covers damages to your car from events such as break-ins, shattered glass, and damages while parked, including animal damage, fire, and theft.

Full coverage

Full coverage includes all of the above, as well as damage to your car after accidents.

Additional forms of insurance

In Austria, you can obtain a Green Insurance Card (Green Card), which proves that you have the minimum compulsory insurance coverage to drive in the country. The Green Card system currently covers 47 countries, including most European countries. If you are stopped at the border of a country covered by the Green Card system, you only need to show your Green Card to confirm that you have valid car insurance.

Insurance brokers

If you are unsure about which insurance to choose, you can seek advice from an insurance broker. They can help you navigate the different types of insurance and find the best option for your specific needs.

Cost of insurance

Austria is considered to be expensive when it comes to car insurance. You can expect to pay anything from between €60 and €150 per month. The cost of your insurance will depend on several factors, including your driving experience, the size and power of your engine, and where you live. If you have a good no-claims driving record, you may be able to get a discount on your insurance premium.

Frequently asked questions