Significant changes to car liability insurance will take effect in the Czech Republic on 1 October 2024. These changes aim to promote comprehensive digitalization and will affect both drivers and insurance companies.
One of the key changes is the abolition of the “green card,” which served as an international confirmation of third-party liability insurance. Drivers will no longer need to carry this document in physical or electronic form. The reason for this change is the introduction of an online register by the Czech Insurance Bureau, enabling real-time verification of a vehicle’s insurance. In the future, police and other authorities will have access to this register, significantly simplifying the verification of compulsory insurance during roadside checks. However, until January 2025, drivers must still carry the green card when traveling abroad.
Another significant change involves the activation of liability insurance policies. In the future, it will no longer be possible to activate a contract retroactively. Insurance companies will determine the start date of the insurance individually. Additionally, the process of concluding a contract will be made more flexible: contracts can still be concluded through signing or payment of the premium. However, the premium must be paid before the start of the insurance, emphasizing the need for timely payment.
To facilitate premium payments, the list of payment methods has been expanded. In addition to traditional bank transfers, an online payment system will be available for fast and uncomplicated transactions. This is particularly important, as the goal is to activate the insurance immediately upon receipt of payment.
Previous Changes to the Law
Some legal amendments were already made in April 2024. The definition of “vehicle” was expanded to include self-propelled motor vehicles with a design speed exceeding 25 km/h or a weight over 25 kg, making them subject to compulsory insurance. Additionally, the minimum sum insured has been raised to CZK 50 million, and the obligation to insure has been extended to the operator of the vehicle.
Recent statistics from the Czech Insurance Office indicate a steady increase in the number of insured vehicles. In the first half of 2024, 9,472,944 vehicles were insured, up from 9,295,217 in the second half of the previous year. The number of insured vehicles is expected to exceed ten million by the end of 2024.
