Mandatory Car Insurance in Austria 2026: Kfz-Haftpflichtversicherung and the Bonus-Malus System
Every motor vehicle taking part in traffic in Austria must have third-party liability insurance. The Kfz-Haftpflichtversicherung covers damage caused to third parties while driving, including property damage and personal injury.
Because the person responsible for causing damage is liable with their entire assets, having valid insurance is particularly important.
Minimum coverage amount
- Under Austrian law, Kfz-Haftpflichtversicherung must cover at least 7.6 million euros. This amount also applies in 2026.
- Of this total, 6.3 million euros is allocated to personal injury and 1.3 million euros to property damage.
- Insurers may offer higher coverage amounts.
The minimum coverage is intended to provide compensation even after serious accidents. Higher coverage can provide additional protection in major incidents, such as a mass collision on a motorway or a case involving lifelong disability and a substantial compensation claim.
Where the insurance is valid
- The Kfz-Haftpflichtversicherung applies throughout the whole European region.
- Within the EU, the number plate serves as proof of insurance.
- For travel outside the EU, you must request a Green Card from your insurer.
How long the policy lasts
- The Kfz-Haftpflichtversicherung has a one-year term. Cancellation is possible on the renewal date with prior written notice.
- If there is no longer an insurable interest—for example, because the car has been dismantled or scrapped—the one-year obligation does not apply.
- If the car is sold, the insurance transfers to the buyer under the law. The buyer can cancel it within one month of the purchase.
The policy usually renews automatically unless it is cancelled on time. Ordinary cancellation must reach the insurer in writing no later than one month before the end of the insurance year.
If the premium increases, cancellation is also possible within one month of receiving the notification. After a claim, cancellation is possible within one month of the insurer acknowledging or rejecting the compensation claim.
If the policy lasted less than one year, the insurer may calculate a more expensive short-term premium, known as a Kurztarif.
Insurance confirmation and policyholder obligations
A vehicle cannot be registered without insurance. To put a vehicle into circulation, you need proof of insurance. This confirmation is issued after the insurance contract has been concluded.
Paying the premium
The first premium must be paid within 2 weeks of receiving the insurance policy. Paying the premium on time is essential for maintaining insurance coverage. If the premium is not paid, the insurer informs the authorities and the number plate may be withdrawn.
Driving under the influence
If a driver causes an accident while under the influence of alcohol or drugs, the insurer pays the injured parties’ claims but can recover the amount paid from the driver who breached the rules.
The Austrian Bonus-Malus system
The Bonus-Malus system is intended to distribute insurance premiums more fairly. It is no longer regulated by law, so the rules and premium percentages can differ between insurers.
The system applies to passenger cars, including motorhomes weighing 3.5 tonnes, as well as rental cars and taxis. The best classification is level 0, for which insured people pay significantly reduced premiums. The worst classification is level 17, which results in a higher premium.
How the classification changes
- New customers, or people who have not owned a car for at least 1 year, generally start at level 9.
- After each claim-free year, the policyholder moves down by 1 level to a more favourable classification.
- After an at-fault claim, the policyholder moves up by 3 levels to a less favourable classification.
- The policyholder can avoid this change if they reimburse the claim paid by the insurer within six weeks.
When taking out insurance in Austria after moving there, Austrian insurers are not required to recognise claim-free years earned in another EU country. In practice, many insurers do recognise them, so it is worth requesting a claims-free certificate from the previous insurer.
Changing vehicle or insurer
The Bonus-Malus classification does not disappear when you change vehicle or insurer. The current bonus or malus level can be transferred.
It can also be transferred to a close relative, such as a child. In that case, the person transferring the classification returns to the basic level 9, while the beneficiary receives the transferor’s previous bonus level.
The general calculation described by ÖAMTC is therefore: a new contract starts at level 9, each claim-free year reduces the level by 1, and each at-fault claim increases it by 3. However, insurers’ rules and premium percentages may differ because the system is no longer set by law.
Practical steps
- Arrange a Kfz-Haftpflichtversicherung before registering the vehicle.
- Obtain the insurance confirmation after signing the contract and keep it with your vehicle documents.
- Pay the first premium within 2 weeks of receiving the policy and continue paying premiums on time.
- Ask your previous insurer for a claims-free certificate if you want an insurer in Austria to consider your earlier record.
- Check the renewal date and submit ordinary cancellation in writing at least one month before the insurance year ends.
- Request a Green Card before travelling outside the EU.
- After selling a car, inform the buyer that the insurance transfers to them and note that they can cancel within one month of purchase.
Sources: ÖAMTC: Bonus-Malus-System and ÖAMTC: Kfz-Haftpflichtversicherung kündigen.