Car insurance from another State?

MrPudding

I have the opportunity to buy car insurance in another European state. There is a considerable difference in cost (Just under €400 instead of just under €3000 here.) I did some research and it seems that as an EU citizen I am entitled to buy my Car insurance where ever I like as long as I can find a company willing to cover me. A guy in a car showroom in Dublin told me that if I was in Ireland my insurance had to be sourced here, this seems to be against EU law. Does anyone know what the story actually is? The insurance company does not care where I drive or how long I drive there.

seamus

There should no problem with you being covered by another EU company. After all, it's free trade, isn't it? I'd say the guy in the showroom is talking out his arse - they probably do a car + insurance deal that he wanted to sell to you.

Just double-check this company is insuring you correctly as required under Irish Law.

And then.....post up the details.....if you can

MrPudding

My gf and myself are doing a lot of research at the moment. I think that if the insurance company is part of the green card scheme then there is common law involved. It would seem that the insurance we would get would be fully compliant with Irish law. I do not know law so this is my laymans interpretation of some legal docs.

MrPudding

If you want to have a good cry to yourself (and understand a bit of French) go to www.maaf.fr and get an insurance quote. NOTE This company will only insure you if you have an address in France, they don't care if you move to Ireland after but you need an address to start. We are trying to find a company that will insure someone from another state directly.

Mailman

If you've got any details I'd appreciate it if you would pass them on so that I can investigate this for myself.

Are you an Irish national? I've heard of some Polish people being able to get properly insured to drive here from Polish companies but nothing for Irish nationals.

b20uvkft6m5xwg

If you are insuring your car in Ireland you have to use an Irish Company or alternativelky you can use another EU owned company so long as they have an office/subsidiary in Ireland. The main reason for this is that all companies writing car insurance are statutorily bound to contribute to the Motor Insurance Bureau. This amount is 10% of their annual turnover in motor insurance. The MIB compensates innocent third parties where uninsured drivers are to blame.

So you can get Insurance from AXA (A French Company) because they have an office/subsidiary in Ireland and contribute to the MIB, But you couldnt get insurance from a Spanish Insurance company if they do not have an office or are reigistered as an insurance broker in Ireland and not subject to the Irish Regulations.

There is no prohibtion with you getting insurance in another EU state but it would almost certainly breach the terms of your policy unless you have some arrangment on travelling thro Europe. However that is only for tourists or the transport sector. If your Principle Private Residence is in Ireland and they are insuring you for theft at that address for instant that is not allowed.

All the above applies to Car Insurance. You can get certain insurance abroad if there is no market for it in Ireland.

Seamus,
The changes in competition and market conditions is regarding the free movement of capital and services. (also in conjunction witht WTO's GATS[Genral agr. on Trade in Services]). Free trade is not a universal EU concept especially in terms of Finanical Services or Insurance where National Regulations still very much supercede EU law.


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Overall while you could technically be insured on the road, it would breach one of the core principles of Insurance...uberrimae fidei (of Utmost Good Faith) and you run the serious risk of not being adequatly covered

MrPudding

The following is from the European Commission website FAQ.

<Begin>

Can a citizen get cross-border insurance cover in a Member State other than that of his residence?

According to the rules on registration of vehicles, these have to be registered in the Member State in which the owner has their normal residence. Under the Motor Insurance Directives, the Member State of registration of the vehicle determines the localisation of the risk.

Citizens can get insurance cover in a Member State other than their country of residence provided that they find an insurance undertaking that wishes to provide the service and that meets the conditions set out in the Insurance Directives. According to EU insurance legislation, all insurers established in the EU are granted the freedom to operate throughout EU territory, either by establishment in any Member State(s) they choose or through the free provision of services across borders. An EU insurance undertaking wishing to provide cross-border motor insurance services in another Member State must meet several conditions: 1) it must be incorporated into the local bureau of the green card system 2) it must participate in the local guarantee fund 3) it must appoint a representative in the Member State concerned to handle claims in that country 4) it must communicate to the host authorities, through the home supervisory authority, that it wishes to operate through the free provision of services guaranteed by EU legislation.

These conditions arise from the fact that the EU system on motor insurance was created on the basis of the pre-existing green card system and from the need that the insurance undertaking wishing to operate cross-border in another Member State participates in the local mechanisms for the coverage of compulsory motor insurance.

Citizens may contact the competent national authorities for supervision of insurance undertakings in order to check whether an insurer established abroad has met the aforementioned conditions to cover a vehicle registered in their Member State of residence. These authorities should have this information available, as provided for in the Insurance Directives.

It should be noted that, while the EU insurers must be allowed to operate on a cross-border basis if they meet the conditions explained above, they cannot be obliged to insure risks (cross-border or in any other way) if they do not wish to do so, according to the principle of contractual freedom.

<End>

My reading of this is that if the company pays into MIB and they are will to cover you there should be no problem.

b20uvkft6m5xwg

Originally posted by MrPudding
The following is from the European Commission website FAQ.

<Begin>

Citizens can get insurance cover in a Member State other than their country of residence provided that they find an insurance undertaking that wishes to provide the service and that meets the conditions set out in the Insurance Directives. According to EU insurance legislation, all insurers established in the EU are granted the freedom to operate throughout EU territory, either by establishment in any Member State(s) they choose or through the free provision of services across borders.

etc.
etc.
<End>

Well that confirms what I was saying above.

Originally posted by MrPudding
My reading of this is that if the company pays into MIB and they are will to cover you there should be no problem.

In answer to that...
Yes but in effect that means using an irish Company cos unless they are established in Ireland they are not going to be paying into the MIB

MrPudding

Originally posted by 80project

In answer to that...
Yes but in effect that means using an irish Company cos unless they are established in Ireland they are not going to be paying into the MIB

ahhh...Perhaps I picked that up wrong. I was going to use a company in France which has offices here, for example AXA. The quote you would get from AXA in France to insure your car to drive and keep it in Ireland is considerable less than AXA in Ireland will give you. Will that not be OK as AXA will be paying into the MIB?

thegills

Mr. Pudding - Your idea seems good. But I would imagine that insurance companies based in Ireland would have examined all of these possibilities and covered there proverbial backsides so as to maintain their rip-off monopoly.
Reading the previous responses it would seem that the compnay does not need to reside here. As regards the MIB fund, I imagine that the 10% only applies to profits geberated in Ireland. I'm sure you wouldn't mind paying an extra 10% onto your quote considering it's so much cheaper abroad.

b20uvkft6m5xwg

Gills

The MIB Contribution is not on profits its on Turnover- ie. actual business *DONE* in Ireland. Hence if your writing buisness for Irish Cars you have to pay pro-rata your business.