Things to Know Before Choosing Car Insurance in Norway

Car insurance in Norway (Bilforsikring) , as it is across all EEA (European Economic Area) countries and the United Kingdom is mandatory. It’s not only a legal requirement but also a crucial safeguard against unexpected expenses related to road accidents, theft, and other incidents. Given Norway's unique terrain and road conditions, having the right coverage is vital for your safety and financial protection.

The Motor Liability Act and Compensation in Traffic Accidents

In Norway, The Motor Liability Act (Bilansvarsloven) regulates liability in traffic accidents, ensuring that injured parties receive compensation for personal injury and property damage. The responsible insurance company is required to cover the claim, regardless of whether the driver is at fault, and it also covers damage to the driver’s own vehicle in cases of right-of-way violations.

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Injured parties have the right to claim compensation for incurred expenses, loss of income, and any permanent medical disability. Engaging a professionals lawyer with experience in traffic injury cases can be beneficial to ensure proper compensation and support throughout the claims process.

Daily Penalties for Lack of Car Insurance in Norway

Chapter 4 of the Motor Liability Act (Bilansvarsloven) mandates that all vehicles defined as motor vehicles must have valid liability insurance. The vehicle owner is responsible for obtaining and maintaining insurance that covers the various types of damage specified in the law. Failing to obtain or maintain liability insurance can have significant and costly consequences, including daily penalties. The size of the penalty depends on the type of vehicle:

Passenger cars and motorcycles: NOK 150 per day
Mopeds and tractors: NOK 50 per day
Buses and trucks: NOK 250 per day

These fees can quickly add up to substantial amounts. An uninsured private owners car, for instance, incurs a penalty of NOK 4,500 in just one month—significantly more expensive than purchasing car insurance. Additionally, you must pay a traffic insurance fee to the state for each day the vehicle remains uninsured.

Driving without insurance also has severe consequences. Without an insurance company to cover potential damages, you would be personally liable for any harm caused to others in an accident.

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Four Main Coverage Options

The Norwegian Car Insurance National System offers four main coverage options, each designed to provide varying levels of protection. Understanding these options will help you select the right plan tailored to your needs and vehicle.

1. Basic Liability Car Insurance (Ansvar Bilforsikring)
Liability insurance (Ansvar) is the mandatory, foundational type of car insurance in Norway. It covers third-party damages if you are at fault in an accident, including:
Repair costs for third-party vehicles and property.
Compensation for personal injuries to other parties, including passengers in your vehicle. For full protection, additional coverage under a bodily injury, including driver and passengers (Fører-passasjerulykke) policy may be required.

2. Partial Coverage Car Insurance (Delkasko Bilforsikring)
Delkasko extends basic liability insurance to cover more than just road accidents. In addition to Ansvar, it includes:
Coverage for damaged windows, including front windscreen, side, rear, and panoramic glass roofs.
Protection against vehicle theft and vandalism.
Fire and explosion damage.
Roadside assistance in case of breakdowns or accidents.

3. Comprehensive Car Insurance (Kasko Bilforsikring)
Kasko provides the most extensive standard coverage, including all the benefits of Ansvar and Delkasko, plus:
Coverage for repair costs or compensation for collision damages, even if you are at fault.
Roadside assistance across all EEA and EU countries, with the right to a replacement vehicle.
Coverage for rollovers, off-road incidents, and collisions.
Protection for additional equipment, with some limitations.

4. Super Comprehensive Car Insurance (Superkasko Bilforsikring)
Superkasko offers the broadest range of coverage, combining all the benefits of Ansvar, Delkasko, and Kasko. This premium plan also includes:
Mechanical breakdown coverage for engine, transmission, and axle repairs up to 200,000 km or 10-12 years old (for electric cars, it covers the motor and battery).
No bonus loss for parking accidents (up to 20,000 NOK).
Additional compensation in the event of a total loss of the vehicle.

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Legal Assistance Insurance (Rettshjelpforsikring)

Rettshjelpforsikring is typically included in every car insurance policy in Norway. It covers the cost of legal aid if you find yourself in a legal dispute related to your insurance.

Why Choose Comprehensive Car Insurance in Norway?

Norway’s challenging and diverse landscape increases the risks for drivers. With over 1,000 tunnels, long distances between cities, and harsh weather conditions leading to slippery roads, road safety is a priority. Moreover, vehicle repair costs are high, making comprehensive insurance a wise choice to avoid substantial expenses.

Factors Affecting Insurance Costs

In Norway, your insurance costs are significantly influenced by your Accident-Free Driving Record. For each year without an accident, you accumulate discounts on your insurance. Conversely, causing an accident can lead to a loss of these discounts. Other factors impacting costs include annual mileage, place of residence, and the driver’s age.

Transferring Foreign No-Claim Bonus. Consider Expert Advice

It’s essential to note that not all Norwegian insurers recognize previous foreign no-claim bonuses. There are no legal requirements in Norway for insurers to accept such discounts. Therefore, it’s recommended to consult a local Insurance Advisor (Forsikringsrådgiver) or Insurance Agent (Forsikring Agent) to see if this option is available and how it could help reduce policy costs.

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Key Takeaways - Check Insurance Protection

Choosing the right Car Insurance in Norway is not just about meeting legal requirements—it’s about ensuring you and your car are protected against unexpected incidents. With various plans to choose from, it’s important to consult an insurance agent or advisor to find the best policy that fits your needs and budget.

To check if your car is insured or to find out which insurer covers a vehicle involved in an accident, visit the official website of the Norwegian Motor Insurers' Bureau (TFF - Trafikkforsikringsforeningen) at www.tff.no.