Types of car insurance

September 2021

What types of car insurance are available in Latvia

You can buy MTPL (with its several variants) and CASCO insurance for your vehicle in Latvia.

You can draw up a policy for your car in person at the insurer, by contacting your insurance specialist remotely, using the services of brokerage companies, or buy it yourself online at one of Latvia's largest insurers. When forming a policy on your own on the Internet, it can often be more advantageous, because no administrative costs are applied at the expense of which your policy receives a discount.

mini cooper car in a parking lot in fall

MTPL insurance

MTPL is a mandatory type of insurance for every vehicle owner. If you have decided to participate in road traffic, then do not do without this policy, because it is required by law. MTPL can be purchased for 1, 3, 6, 9 and 12 months. What are the other types of MTPL policies available on the market? Let's see below..

Standard contract

The classic MTPL policy in the language of the insurers is a Standard Contract, this insurance policy will be valid throughout the European Economic Area, incl. Switzerland, as well as Serbia, Croatia and Andro. When crossing the borders of these countries, you just need a regular MTPL policy and you do not have to buy anything extra.

"Green card"

Insurers also offer to buy a Green Card. This insurance is intended for cars registered in Latvia and its movement is insured in the Member States of the Green Card system (list of countries avaiable here). If you are planning a trip to one of the following countries, then you need to form a Green Card: Albania, Bosnia and Herzegovina, Belarus, Israel, Iran, Morocco, Moldova, Macedonia, Montenegro, Russia, Tunisia, Turkey and Ukraine.

Examine your insurance policy thoroughly before going abroud with your vehicle, the Green Card is valid in the countries specified in your policy (EEA + the above-mentioned countries).

Border agreement

It is also possible to purchase a MTPL insurance policy for a vehicle that is not registered in a European Economic Area country, for example in Russia, the USA, Moldova, Belarus, etc. Border agreement is valid in the Member States of the European Economic Area and in the Swiss Confederation.

When entering a country that is not part of the European Economic Area or the Green Card system, a local insurance contract of the purchased country is required. Find out where to buy the cheapest OCTA you can in the section Compare MTPL.

CASCO insurance

CASCO is a voluntary type of insurance for your vehicle. If MTPL covers losses you cause to other persons, then CASCO will indemnify you and your car. Read more about what is covered by CASCO insurance in our article What's insured with CASCO.

Remember, the cheapest is not always the best choice. If it is really not worth overpaying for the MTPL policy, because all MTPL products in the insurance market are identical (except for additional coverage, for example, Mini CASCO or Golden MTPL), then CASCO requires more in-depth research on your end. CASCO offers many different risks, which is very useful for some but unnecessary for others. Therefore, before deciding in favor of one insurer, find out the insured risks and most importantly the deductibles. When buying online click on the different options and see how the price of the insurance policy changes.

As an example is the insurance area. Consider the idea that perhaps Europe or whole world is not needed to be insured in at all if you do not drive your car beyond the Baltic borders. Save a few percent of the policy price and better choose a lower deductible for glazing damage instead. When buying your policy online and "playing" with the insurance calculator in this way, you can find out the best coverage against the price you will have to pay.

When buying insurance, we recommend using OCTA and KASKO calculators. Insurers and intermediaries websites or their e-shops have a great opportunity to calculate the price for your policy, no one has the hassle of choosing the most suitable policy and overpaying for what is not necessary.

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