In most countries, auto insurance is compulsory in order to protect victims of road accidents. Everyone is then free to take out more protective guarantees to be better compensated in the event of a claim. Let’s find out which auto insurance is compulsory, the penalties in the event of an insurance default and the additional guarantees to be taken out.
Compulsory auto insurance
What does the law say about compulsory auto insurance?
important article L211-1 of the Insurance Code defines the obligation of automobile insurance in France. According to this article, any land motor vehicle, “that is to say any self-propelled vehicle intended to travel on the ground and which can be actuated by mechanical force without being linked to a railway track, as well as any trailer, even not hitched ”must be insured.
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What are the penalties for defaulting on compulsory auto insurance?
The lack of car insurance has been sanctioned by a fixed fine of € 500 since 2017. Please note, this fine is only intended for people guilty of a lack of insurance for the first time. The fine is reduced to € 400 for any payment within 15 days and increased to € 1,000 in the event of non-payment within 45 days.
In the event of a repeat offense, the penalties are increased:
fine of up to € 3,750;
cancellation or suspension of the license for up to 3 years;
road safety awareness course;
ban on driving a land motor vehicle for 5 years;
confiscation of the vehicle or immobilization of it;
work of general interest ;
day fine in case of non-regularization of the situation.
The file of insured vehicles (FVA)
The file of insured vehicles was set up in 2019. Thus, the police can check electronically whether the car is really insured. In the event of control by an automatic radar, a crossing with the FVA is carried out, it is thus possible to be sanctioned at the same time for a speeding violation and a lack of insurance since 2020.
The compulsory insurance guarantee fund (FGAO)
The FGAO is a fund which intervenes in the context of an accident linked to a lack of insurance of the responsible driver. Let’s go back to our example. You hit a third party with your vehicle and this time you are not insured. As soon as the third party is the victim of bodily injury, the compulsory insurance guarantee fund compensates him, for both bodily injury and material damage.
Compulsory auto insurance guarantee fund
Additional guarantees for compulsory auto insurance
If this insurance is required by law, remember that only civil liability coverage is required. Should you be satisfied with it? Nothing is less sure.
compulsory auto insurance guarantee
We explained to you that this guarantee only covers damage caused to a third party. This means that, whatever the loss, you do not get any compensation from your insurer as long as you are responsible.