Vehicle Insurance in Hungary
General information on taking out an insurance policy in Hungary, with comprehensive details on insuring a vehicle (options from third party to all risks) and making a claim...
In Hungary, it is the car and not the driver that is insured, although some policies have restrictions on the age of drivers, and the policy holder’s age, gender and marital status influence the price.
Only cars registered in Hungary can get insurance in Hungary, and third party liability auto insurance (kötelez? felel?ség biztosítás) is obligatory. The proof of payment - bank transfer or yellow postal cheque receipt (sárga csekk) - must be carried in the vehicle at all times, together with the car’s registration papers (forgalmi igazolvány).
There are also other kinds of insurance available. For example, comprehensive insurance (CASCO) is usually for new or financed cars.
Types of Insurance
There are two main types of insurance in Hungary:
- Third party liability auto insurance (kötelez? felel?ség biztosítás)
- Comprehensive insurance (CASCO). Insurance companies offer several kinds of comprehensive insurance from basic insurance which is called mini-CASCO to teljes-CASCO, which is a fully comprehensive policy
The cost of vehicle insurance varies from one insurance company to another. Cars are insured for one year and it is advisable to shop around or to use an insurance broker. There is a 30 percent accident tax added to third party insurance which is collected by the insurance company and forwarded to the state.
The cost of vehicle insurance depends on the following factors:
- Make and model of the vehicle, its power and age, and occasionally, its colour
- Driving history and age of the driver(s)
- If there are small children in the family
- Where the car is registered (town or countryside)
Some insurance companies give discounts for various memberships or multiple insurance. Other companies give discounts for direct debit or bulk payment.
Hungarian car insurance has a system of no-claims discounts, known as the Bonus-Malus system, which is regulated by the state. The annual rate increases if a claim is made when an accident is the driver's fault. However, if the driver does not have an accident, the rate decreases.
All new drivers start at a premium level, which is called "A00". If they have been insured in the previous two years they can transfer their previous bonus.
A no-claims bonus accumulated abroad can be transferred to a Hungarian insurance company. The certificate issued by the previous insurance company is needed, and maybe a translation. English-, German- and French-language certificates are usually accepted, but it is advisable to check with the insurance company first.
Making a Claim
In the event of an accident, the Accident Report Form (Kárbejelent? lap) should be sent to the insurance company within a limited time, which differs from one company to another. It is usually five days for the driver responsible and 15 for the victim.
The Green Card
An international motor insurance green card, which is needed when travelling abroad to prove that a car is insured, is sent by post by the insurance company.
Cancelling or Transferring a Car Insurance Contract
Insurance contracts are automatically renewed at expiry date, unless they are cancelled in writing 30 days previously. It is advisable to shop around each year to benefit from discounts.
- For further information about car insurance from an insurance broker: Click here (in Hungarian)