Uninsured drivers in the Czech Republic are putting themselves at risk of significant financial problems, warns the Czech Insurance Bureau. Currently, around 150,000 uninsured cars are driving on Czech roads. In the event of an accident, uninsured drivers could face damages reaching millions of crowns. This was demonstrated in a recent case where the at-fault driver did not have compulsory liability insurance. The driver’s failure to see a cyclist traveling along the main road led to severe head injuries for the cyclist, who requires nearly 24-hour care due to motor, orientation, and memory impairments. The total compensation paid out has reached almost 11 million crowns, which the insurance company office paid out of its guarantee fund.

Compulsory liability insurance covers property damage and medical expenses. The Insurance Bureau handles over 200 car accidents caused by uninsured drivers monthly. The bureau’s guarantee fund is composed of contributions from insurance companies and fines imposed on offenders who do not have compulsory liability insurance. Fines can be significant, and the bureau then pursues the uninsured driver for the insurance payout and the penalty.

One of the reasons for the high number of uninsured drivers is that some people cancel their insurance when they finish financing their cars. This frequently happens when the vehicle is initially insured by the financing company, which balances the insurance after the last payment. The result is that many drivers end up driving without compulsory liability insurance.

The Czech Insurance Bureau advises drivers to ensure that they have compulsory liability insurance at all times. It is not only illegal to drive without it, but it is also a severe financial risk. The bureau encourages drivers to shop around for the best insurance rates and to choose the policy that best suits their needs. While car insurance may seem like an unnecessary expense, it is a necessary investment to protect oneself from financial losses and ensure the safety of all road users.

Article by Prague Forum