Mandatory liability insurance covers liability for the risks arising from operating a vehicle. It does not cover damage to your vehicle that is your fault. Those risks are covered by collision insurance. Mandatory liability insurance also covers trips abroad. Each insured party receives a “green card” from the insurance company and takes that card on trips abroad. The terms of mandatory liability insurance coverage and the minimum insurance benefit limits are governed by law. For personal injury, the minimum limit is CZK 35 million, and for property damage the minimum limit is CZK 35 million.
!!!Attention!!! From 1 Jan. 2009, for every day their vehicle is uninsured, uninsured motorists are required to pay a contribution of between CZK 20 and CZK 300 (depending on the type of vehicle) to the guarantee fund of the Czech Insurers’ Bureau. Click here for more information.
Collision insurance is intended to cover the risk of damages arising in case of a collision, theft, natural disaster or the actions of a third party (vandalism). If you have collision insurance and you pay your premiums regularly, according to the given terms of coverage, the insurance company will pay you compensation for damages occurring to your vehicle. You can insure yourself against collision, theft, damage or destruction by a natural disaster or the actions of a third party (vandalism). The various insurance companies combine these types of coverage in different ways, but most customers choose complete “all risk” insurance coverage. There are other secondary types of risk, and these must be covered separately. These include insurance coverage for windshields, luggage and personal items, injury of transported persons, special equipment, the cost of a replacement vehicle etc.