Swedish Car Insurance Guide

Yes, third-party liability insurance (Trafikförsäkring) is legally required for all vehicles registered in Sweden. This minimal coverage ensures that if you cause an accident, the injured parties will receive compensation. Driving without this insurance is illegal and can result in significant fines.

Several factors determine your insurance premium in Sweden, including: your age and driving experience, your driving history and claims record, the make, model, and age of your vehicle, where you live (urban areas typically have higher premiums), your annual mileage, where you park your vehicle (garage vs. street parking), and any security devices installed in your vehicle.

This decision typically depends on the value of your car and your risk tolerance. For newer or more valuable vehicles, Helförsäkring (full insurance) is generally recommended as it covers damage to your own vehicle in case of accidents. For older vehicles with lower market value, Halvförsäkring (half insurance) might be more cost-effective, as the premium savings could outweigh the potential cost of repairing or replacing the vehicle if you caused an accident.

Most Swedish insurance policies automatically cover driving within the EU/EEA countries, but the level of coverage might be different from what you have in Sweden. Typically, when driving abroad, your insurance automatically provides the minimum coverage required by the country you're visiting. For complete protection, check with your insurer before traveling and consider additional coverage if needed.

Sweden uses a bonus/malus system that rewards safe drivers and penalizes those who make claims. For each year without claims, you typically earn a bonus that reduces your premium. After an accident where you're at fault, you may lose some or all of your bonus and face higher premiums. Some insurers offer "bonus protection" as an add-on that prevents your bonus from being affected by a single claim within a certain period.