How to avoid fines for not maintaining third party liability insurance continuity

What is a lack of third party liability insurance continuity?

Discontinuity in liability insurance means that there is a gap between the end of one policy and the start of the next. Each registered vehicle must be continuously insured – from the moment it is registered until it is deregistered. 

Usually, lack of liability insurance continuity results from driver absentmindedness, administrative errors, ignorance, or an intentional attempt to save several hundred zlotys. Such conduct may lead to hefty fines and liability for damage caused without insurance protection.

Considerable fines for lack of liability insurance continuity

Fines for lack of third party insurance are closely tied to the minimum wage. In the first half of 2024, this amounts to PLN 4,242, while the amount of the fine varies depending on the type of vehicle and the time during which the vehicle was left without mandatory insurance.

The amount of the fine depends on the type of vehicle

• Passenger cars: for lack of liability insurance for over 14 days, the owner of a passenger vehicle may be charged a fine of twice the minimum wage, which in 2024 equals PLN 8,480.

• Trucks, tractors and buses: in this category the fine is three times the minimum wage, which translates into PLN 12,730.

• Other vehicles (e.g. motorcycles, mopeds): here the fine is one third of the minimum wage, i.e. PLN 1,410.

An important aspect is rounding the charges to the full PLN 10. This practice aims to simplify the payment process and administration, making it easier for both policyholders and institutions to enforce these fees.

Determining the fine based on the length of the gap

• Gap of up to 3 days: the charge is 20% of the full fine.
• Gap of 4 to 14 days: the vehicle owner will pay 50% of the full fine.

Insurance recourse may additionally increase the financial burden on the perpetrator of the accident.

How to avoid fines for gaps in liability insurance continuity?

There is an old Polish proverb that goes: prevention is better than cure. This rule also applies to compulsory third party liability insurance. However, there are proven methods that will help you avoid fines for lack of third party insurance continuity.

1.      Monitor the validity of your policy

In this age of digitalization, the use of mobile applications offering reminders about expiring insurance policies can be an invaluable tool that will help you avoid fines. Currently, policies are often extended automatically by the insurer, as part of your contract. Therefore, any gaps in liability insurance continuity usually result from conscious negligence and failure to pay the appropriate fee by the vehicle owner.

2.      Prove the insurance company is at fault

If you receive an unjustified request for payment, prove to the UFG that in your case there was no lack of third party insurance continuity, and any errors result from the provision of incorrect information by the insurer.

3.      Prove that compulsory liability insurance does not apply to you

This mainly applies to situations in which your car has been stolen or when the allegation concerns a sold vehicle that currently has a different owner. In such a situation, you should present the car sales agreement along with information about the policy that applied until the sale.

4.      Fine expiration

The fine for the lack of liability insurance continuity expires after 3 years from the date of the gap in the insurance. However, it must be taken into account that UFG charges interest, and the expiry period may be extended in the event of an admission of guilt, suspension of enforcement proceedings or initiation of court proceedings to determine the validity of the third party liability insurance.

5.      Submit an application for fine remission

Remission of the fine is possible, but requires solid justification and documentation confirming the specific situation. The UFG takes into account various factors, such as the driver’s living and financial situation, or even serious health problems. The main criterion taken into account when deciding on the remission is a difficult financial situation, confirmed by debt, or even an unemployed status at the Labor Office.

Reacting quickly to not having liability insurance

Responding quickly to the lack of a valid liability insurance policy can significantly reduce potential negative consequences, both financial and legal. Being proactive, not reactive, is key to managing insurance continuity. 

It is important not only to act quickly, but also to report this fact to the insurer, which may affect the terms of further insurance. You should also verify whether the interruption in insurance was not caused by an administrative error.

How to pay the fine for lack of liability insurance continuity

You have 30 days from the date you receive the fine payment request for lack of liability insurance continuity. It comes down to transferring money to the individual bank account number indicated in the document. Failure to meet the deadline is tantamount to the commencement of enforcement by the competent tax office.

Spreading the fine into installments

If it is impossible to pay the fine for the lack of liability insurance continuity in one instalment, it is possible to divide the payment into interest-free instalments. This can be a maximum of 24 instalments. An appropriate application can be submitted through an account on the Insurance Guarantee Fund portal.

Summary: the lowest fine is higher than the price of liability insurance

Compulsory third-party insurance is real protection in the event of a collision and a guarantee of coverage for any resulting damage. Unfortunately, data shows that nearly 1% of vehicles traveling on Polish roads do not have the required insurance. This is interesting because the minimum penalties for lack of third party liability insurance are higher than the lowest prices for third party insurance. So is it worth taking the risk?

FAQ

Can one day without third party liability insurance lead to a fine?

Yes, continuity of liability insurance is so important that even a one-day break may lead to fines.

How can I check the expiration date of my liability insurance?

In addition to paper documents, many insurers offer access to electronic versions of policies that can be checked online at any time.

Can you be sent to prison for interruptions in liability insurance?

In Poland, penalties are limited to fines. However, in some European countries, such as Germany, Belgium, Switzerland and Greece, penalties can involve imprisonment.