27 Oct, 2021

Renew Europe delivers key elements of revised Motor Insurance Directive

Last week, the European Parliament adopted the revised Motor Insurance Directive (MID), a law governing all vehicle insurance in Europe. This brings new guarantees for better safety on European roads, while avoiding increased insurance premiums and other costs for citizens.

During the legislative process, the Renew Europe Group in the European Parliament secured greater protection for motor vehicle accident victims through rapid and adequate payment of compensation, even if the motor insurer becomes bankrupt, and through the establishment of a minimum compensation level across the EU.

Another important element of the revised directive is the exclusion of e-bike usage and motorsport activities from its scope, as long as the organiser of the activities has alternative insurance. The exclusion from the insurance obligation also applies to vehicles with a speed of less than 14 km/h, while allowing Member States to exclude a number of other non-road vehicles such as garden tractors, golf carts and indoor forklifts.

There have also been new developments for those moving to a different EU country and signing an insurance contract for their motor vehicle. For the first time, a common EU form for claims history statements will be created, allowing Europeans to get the same levels of premium discounts as current residents in other Member States.

ALDE Party Vice-President Dita Charanzová MEP (ANO, CZ), Vice-President of the European Parliament and European Parliament Rapporteur on the revised Motor Insurance Directive, said:

“Today is a good day for all vehicle users in Europe and for anyone who unfortunately finds themselves injured in an accident. If your insurance company goes bankrupt, you will be protected. Harmonised claims history statements will mean no more excuses for discriminating against good drivers in the EU. The European Parliament has also protected the uptake of e-bikes, confirming they do not require European insurance. We also ended uncertainty about European motorsports, which can continue to race without impossible insurance requirements. These are concrete examples of a Europe that works for its citizens.”

The new Motor Insurance Directive will enter into force 20 days after its publication in the EU Official Journal and will be applicable from November 2023.

Photo credit: Alain Rolland, European Parliament 2021. 

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