50,000 motorists face compulsory insurance for unused cars (2)

Ford Sierra was one of the most favorite car models in Estonia in the 1990s. The owners who have left their old cars to rust to dust, now face paying the insurance. (Wiki)
7/21/2015 2:14 PM
Category: Politics

From October 1, every registered vehicle or trailer has to have a valid insurance policy. If owners fail to choose a policy, one might be arbitrarily forced upon them.

Hitherto, a transitional provision for the change in the motoring law that took effect last year stipulated that cars that are not in use don't need insurance. The provision will expire on October 1.

The change in the law is estimated to affect around 50,000 motorists, Lauri Potsepp from the Estonian Traffic Insurance Fund said.

"When the law came into force there were over 100,000 vehicles without a valid policy," he said. "These were presumed to be cars that are not used. The transitional period was set so that the owners could delete such vehicles from the register. Nevertheless, many have paid no attention to the threat of having to pay for compulsory insurance."

"If you have a car that you use, you need to sign an insurance contract. If you have a registered vehicle that you don't use, this vehicle has to be removed from the register so as to avoid paying for insurance," Potsepp explained.

People who have sold their cars should also make sure that the vehicles have been re-registered to avoid being hit by a compulsory insurance bill for a car they no longer own or have control over.

The bill, moreover, is greater than the average insurance premium, and in case of an accident, owners with compulsory insurance need to pay a 640 euro deductible.

M. Oll

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