What to look out for when you buy car insurance in Greece!
Navigating the Greek car insurance market can be confusing, especially with terms like ‘Friendly Settlement’ or specific local regulations. This guide breaks down how the system works, what the law requires, and the practical details you should know to stay protected on Greek roads
According to Bank of Greece’s website (www.bankofgreece.gr) the insurance companies that operated in Greece were more than 100. This means that a company might be legally registered in Greece but might not have the know-how or financial capabilities to support its customers in case of a claim.
This became particularly apparent after the suspension of Evima insurance, Diethnis Enosi insurance in 2013 and International Life insurance in 2016, leaving thousands of customers without insurance cover. Bank of Greece has intensified checks regularly on insurance companies and there will be more developments in this area.
So when you look out for insurance in Greece you should not base your decision only on premiums, as a cheap premium might mean that the firm is trying to attract customers in order to compensate for its poor financial performance.
Instead, look for reputable companies that will give you value for money.
Below are important tips to take into consideration when you buy car insurance:
- What is the company’s financial record?
What is the agreed timeframe for a claim to be handled? What is the solvency margin of the firm you are about to sign up to? Your insurance advisor should be able to answer the above questions.
- The Legal Minimum: Third-Party Liability
Ιn Greece, Third-Party Liability (TPL) is mandatory by law. It covers damages to other people, vehicles, or property if you are at fault. Keep in mind: This is the bare minimum. While it keeps you legal, it doesn’t cover your own car’s repairs if you are responsible for an accident.
- The “Friendly Settlement” System (Filikos Diakanonismos)
Greece uses a specific system called the “Friendly Settlement.” Most insurance companies participate in this to speed up claims.
How it works: If two drivers have an accident and agree on who is at fault, they sign a “Blue Form.” Your own insurance company then pays for your repairs and settles the debt with the other company later. It saves you months of legal battles.
- Understanding the “Excess” (Deductible)
When looking at Greek policies, you will see a “Deductible” (απαλλαγή). This is the fixed amount you pay out of pocket before the insurance company covers the rest.
Tip: A higher deductible usually means a lower annual premium, but make sure it’s an amount you can comfortably afford in an emergency.
- Roadside Assistance: Not Always Included:
Unlike some other European countries, Roadside Assistance (Odiki Voitheia) isn’t always a standard feature in basic Greek policies.
Expat Advice: Given the mountainous terrain and the language barrier in rural areas, checking if your policy includes 24/7 support is often more important than the premium price itself.
- Green Card:
Is it issued for free or is there an extra premium in order to get it? Which covers apply abroad?
Bringing a Foreign-Registered Car to Greece (The Green Card)
If you are driving your vehicle from another country into Greece, the “Green Card” (International Motor Insurance Certificate) is your primary document. It proves that you have the minimum compulsory insurance required by Greek law. Read our extended guide HERE.
- EU/EEA Residents: Most modern policies from EU countries automatically cover you for Greece, but always check your policy’s territorial limits.
- Non-EU Residents: You must ensure Greece is listed and not crossed out on your Green Card. If it is, you will need to purchase “Frontier Insurance” (Oριακή Ασφάλιση) at the border.
- The 6-Month Rule: Keep in mind that a foreign-registered car can typically only stay in Greece for up to 6 months. After that, you must either export the vehicle or begin the process of “re-registering” it with Greek plates, which will also require a local insurance policy.
- Is the current commercial value of your vehicle reflected in your plan?
Your contract should be revised each year in order to reflect the correct commercial value of your vehicle. Otherwise you might end up paying a higher premium for a value that will not be reflected in a compensation!
- Is your advisor / company accessible at all times?
Is there a 24-hour help line when your advisor is not able to pick up the phone or answer your emails?
- Do you have cover against un-insured drivers?
(Even in the most basic plan). Unfortunately due to the crisis Greeks cut back on their expenses and there are more than 600.000 vehicles in Greece without cover at the moment!
Finally remember this: A drunk driver is considered a driver with no insurance cover by the Greek insurance firms!
Need advice?
We specialize in helping expats find the right car insurance in Greece. Get a quote or contact us to discuss your needs.
Planning to drive in Greece? Make sure you have paid your Greek Road Tax to avoid heavy fines.