What Are the Risks in the Event of An Auto Insurance Default?

In 2020, the Compulsory Insurance Guarantee Fund counted between 370,000 and 740,000 uninsured vehicles circulating in France. A practice that unfortunately tends to multiply. However, the risks in the event of an insurance default are serious.

Compulsory Liability Insurance

According to article L211-1 of the Insurance Code, any owner of a land motor vehicle must be covered by civil liability insurance to be authorized to travel on public roads. The latter takes the place of the driver to compensate for damage he may have caused to third parties while driving his car.

To prove that he is well insured, the motorist must affix the insurance certificate on his windshield (the famous green sticker). In addition, he must always carry his insurance certificate with him.

If he does not meet this legal obligation, he is guilty of a lack of insurance.

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Penalties for Default of Insurance

The penalties in this case are heavy. The careless driver risks a fine of 3,750 euros. But other penalties can also be inflicted on him, depending on the seriousness of the offense and the damage:

• Suspension or even cancellation of the driving license for a maximum period of three years, with a ban on re-taking the tests for a maximum of three years

• Prohibition to drive any land motor vehicle, even cars without a license

• Confiscation of the vehicle

• Obligation to follow a course relating to road safety at the driver’s expense

• Work of general interest to be carried out

• Prison sentence for the most serious cases

In addition, if he is responsible for an accident resulting in bodily injury and/or material damage, the motorist will have to reimburse the victims out of his pocket. And the score can quickly become astronomical. We should also specify that the compensation that he will pay to third parties will be increased by 10%. This is a percentage returned to the Guarantee Fund for compulsory insurance.

Call the Central Pricing Office

Have you been terminated by your old insurer and you are struggling to find another one likely to accept the risk you represent? Above all, don’t get behind the wheel without being insured. Instead, call  the Central Pricing Bureau . The latter has the power to compel the insurance company of your choice to insure you. The instance will also set the amount of your premium.

As you will have understood, insuring your car is not only compulsory but also essential in order not to have to compensate victims all your life.