Car Insurance in Italy: What You Need to Know
Italy, a country renowned for its beauty, is a fantastic place to explore by car. However, before you hit the road, it’s crucial to handle some essential administrative tasks. One of the most important is securing appropriate car insurance. Italian law mandates a minimum level of insurance for all vehicles. This guide provides a detailed explanation of car insurance in Italy, covering various aspects from policy types to claims procedures.
The Italian Insurance Market
The Italian motor insurance market is substantial, accounting for over half (50.6%) of all non-life insurance in the country. This prominence is largely due to the compulsory nature of car insurance. All drivers in Italy are legally required to have at least third-party liability insurance to cover potential costs to others in the event of an accident. It’s important to remember that when you take out car insurance in Italy, the vehicle itself is insured, rather than the driver. Consequently, you need separate coverage for each car you own.
The Italian Insurance Supervisory Authority (Istituto per la Vigilanza sulle Assicurazioni – IVASS) regulates all insurance companies in Italy. IVASS maintains a list of registered providers and mediates disputes between consumers and insurance companies.
Using Insurance from Another Country
If you already have valid overseas car insurance, you can typically use it in Italy. Similarly, if you purchase Italian car insurance, you may be able to obtain an extended plan that provides coverage in other countries. Most policies from the European Union (EU) and the European Free Trade Association (EFTA—Iceland, Liechtenstein, Norway, and Switzerland) are valid in Italy, and vice versa. Italy is also a member of the Green Card system, which recognizes car insurance in 47 countries worldwide.
Italian Car Insurance Companies
Italy has a large number of insurance companies, with 97 registered. Some of the main car insurance providers in Italy include:
- Allianz
- AXA
- Generali
- Reale Mutua
- Zurich Connect
Additionally, numerous companies offer car insurance specifically tailored for expats. Many Italian banks also provide insurance products, so it’s worth checking with them too. Before selecting an insurance company, it’s crucial to verify that it is registered with IVASS. Websites such as Facile and 6Sicuro help you compare different policies. For basic third-party liability contracts, you can also use a public estimator service provided by IVASS (all links are in Italian).
Types of Car Insurance in Italy
Third-Party Liability (Responsabilità Civile verso Terzi)
This is the legally mandated minimum coverage. It covers the costs of damage to other vehicles and injuries to other parties if you are at fault in an accident. However, it doesn’t cover damage to your own vehicle or your own expenses like medical bills or the repair or replacement of your belongings. Policies typically have a claims limit, such as €1 million. Most insurance companies offer third-party insurance, and many allow you to add individual items to your plan for an increased premium.
Personal Accident (Persona autovetture)
This type of insurance covers the costs of accidents and injuries to you, including medical expenses, in incidents where you are at fault. You can take out separate accident insurance. Many companies allow you to add accident insurance to third-party liability plans, but this will not cover costs relating to damage of your car.
Physical Damage
This is similar to third-party plus fire and theft coverage. This option covers damage to your vehicle caused by natural disasters or external events, as well as theft. Common exclusions include damage to vehicle glass and damage or loss resulting from negligence. If you choose this policy, your car will not be covered for damage resulting from accidents where you are at fault. Personal costs, such as medical bills from injuries, are also not covered.
Comprehensive Vehicle Protection (Danni autovetture)
This is the most extensive car insurance option in Italy, combining the coverage of the above types. Each insurance company has its own specific policy. Common exclusions include breakdown coverage, no-claims bonus protection, and damage due to negligence. It’s always important to check exactly what each policy covers as the level of protection can vary. You can usually add in additional coverage for an increase to your monthly premiums.
Car Insurance Costs in Italy
The cost of car insurance in Italy depends on several factors:
- Insurance Type: Third-party liability is typically the most affordable, while comprehensive policies are the most expensive.
- Risk Factors: These include your age, driving history, the type of vehicle you are insuring, and its usage.
- Deductible: Many insurers allow you to increase your deductible (the amount you pay upfront for a claim) in return for lower monthly premiums.
- Location: Costs can vary across different regions of Italy.
The average yearly car insurance cost in Italy is between €380 and €650.
Additional Forms of Italian Car Insurance
Additional insurance coverage is frequently available to tailor policies to your particular needs. These optional extras may include:
- Breakdown coverage (for towing, repairs, and a temporary replacement vehicle)
- Legal protection (covering legal costs)
- Bonus protection (guaranteeing your no-claims bonus)
- Overseas coverage (for countries where your insurance isn’t normally valid)
Many companies also offer policies for other vehicles in Italy, including motorcycles, vans, trucks, and boats.
Car Insurance Bonuses and Penalties
Italy uses the bonus-malus system to calculate insurance costs. This rewards drivers with a good driving record and penalizes those who have made previous claims. The system ranks vehicles on a class scale from 1 to 18, with Class 1 being the highest. New drivers and vehicles often start in Class 14.
For each claim-free year, you move up a class; a claim can drop you two classes. Better class ratings translate to significant discounts on your insurance premium, potentially up to 50% with some companies.
You can usually transfer no-claims bonuses from companies in other EU/EFTA countries to Italy. Italian insurance companies aren’t obliged to recognize no-claims periods from non-EU/EFTA nations, but they can choose to do so. Most companies recognize no more than five years of no claims. As a result, when importing a car to Italy, the highest class you’re generally able to achieve is Class 9.
If you have made prior claims, or if you have a poor driving record (e.g., points on your license due to careless driving) or are a young or inexperienced driver, you will likely pay a higher premium for car insurance in Italy.
Choosing Car Insurance in Italy
When selecting car insurance in Italy, make sure to consider:
- Policy customization: Can you eliminate unnecessary elements and add any that are missing to create the best coverage for your needs?
- Bonus-malus system: Understand what discounts are offered, and check transfer options if importing a car.
- The claims process: How simple and speedy is the claims process, and is it available online?
- Deductible: While most third-party liability policies in Italy don’t offer a deductible option, more extensive plans may. Understand how much premiums can be reduced by increasing the deductible.
- Company reputation: Check consumer ratings and reviews.
- Incentives: Some insurers partner to offer additional benefits or discounts.
- Ethical rating: Look at company ethical and sustainability ratings on sites such as CSRHub, Standard Ethics, and Corporate Knights.
You can find further guidance on the IVASS website regarding choosing car insurance in Italy.
How to Apply for Italian Car Insurance
Most main insurers allow you to apply for car insurance online. Alternatively, you can set up a policy over the phone or via the company’s local branch. Applying online typically starts with filling out an online quote form. You will usually need to provide:
- Your date of birth
- Contact details
- Vehicle license plate number
- The desired type of coverage
You may also be required to provide vehicle-specific details. Once you receive a quote, the company will advise on how to proceed. To purchase the insurance, you will likely need to provide:
- A valid driver’s license
- Certificate of ownership
- Vehicle log book (libretto di circolazione)
- Italian tax number
Once your form is completed, you will need to make your first payment, and your car will then be covered. You’ll receive an insurance certificate and policy details, which you should carry at all times. You may also receive a European accident report form and a Green Card.
Making a Car Insurance Claim in Italy
If you need to make an insurance claim in Italy, contact your insurance provider as soon as possible.
- Take photos of any damage and record witness statements, if available.
- In the event of an accident, complete the accident report form provided by your insurance company, or use the standardized European Accident Statement form. Keep a copy of your car’s report form inside the vehicle.
- Contact emergency services if it is a serious accident.
- Report theft or intentional damage of your vehicle to the police.
- File your claim as soon as possible. The legal deadline for claims is two years, however, it is harder to get compensation if you delay. You will typically need to provide:
- Date, place, and time of the incident Detailed description of the event
- Names of all parties involved
- Vehicle registration details
- Your Italian tax number
Your insurance company has 60 days to assess your claim (90 days if there are personal injuries, and 30 days if both parties have signed the accident form.) If an uninsured vehicle causes the accident, you’ll receive compensation through the Guarantee Fund for Road Accident Victims (CONSAP). If the accident involves a vehicle insured outside of Italy, the National Motor Insurance Bureau will deal with the claim. Your insurer handles dealings with these organizations for you. See the IVASS website for additional information about the steps to take after an accident.
Cancelling a Contract or Changing Providers
Most Italian car insurance contracts are valid for one year. You can cancel early in the following specific situations:
- The premium price increases
- Changes to terms or conditions
- Your vehicle is lost, stolen, or damaged beyond repair
- Other circumstances beyond your control
Some insurers allow early cancellation if you sell your car or transfer a policy to another vehicle. Most car insurance contracts don’t automatically renew. You usually receive a renewal notification. If you fail to renew or switch providers, your vehicle will not be insured. Your insurer can cancel the contract if you break the conditions, and you’ll need to find an alternative provider.
If you cancel a contract without a valid reason, you may have to pay a penalty or charges. Cancelation should be done in writing. If you change providers, many offer help with cancelling your old contract, such as providing template termination letters. Many providers offer an insurance suspension service to temporarily suspend your contract by up to 12–18 months if your car is off the road.
Making a Complaint About an Insurance Company in Italy
To complain, contact the insurance company’s complaints team first. They have 45 days to reply. If you are unsatisfied, take the complaint to IVASS, the national regulator. IVASS normally assesses complaints within 90 days. If IVASS finds a breach, they have the power to sanction the company. If no breach is found, you may have to pursue the matter through the Italian courts. IVASS is establishing the Arbitro Assicurativo, an insurance ombudsman, as an alternative form of dispute resolution, due to launch in 2023.
Roadside Assistance in Italy
You can usually add breakdown assistance to your policy as an add-on to your policy, unless you own a comprehensive policy. You can join the Automobile Club d’Italia (ACI), which is a non-profit organization offering services to Italian drivers. The ACI has a free number (803 116) which you can use 24/7 if your car breaks down on Italian roads. If there’s been a serious accident, contact emergency services at 112.
Useful Resources
- Italian Insurance Supervisory Authority (Istituto per la Vigilanza sulle Assicurazioni – IVASS): Supervisory and regulatory body for the Italian insurance industry
- National Motor Insurance Bureau (Ufficio Centrale Italiano – UCI): Deals with the Green Card system etc.
- Public Insurance Service (Concessionaria Servizi Assicuriativi Pubblici – CONSAP): State insurance body that compensates for accidents involving uninsured vehicles
