First you need a statutory motor liability insurance as provided in the Finnish Motor Liability Insurance Act. In addition, you need to take out a voluntary comprehensive motor vehicle insurance policy called Kasko for financed car.
“What does the statutory motor liability insurance cover?”
In the event of an accident, the motor liability insurance covers any personal injuries. Furthermore, if you are deemed to be at fault for the accident, your insurance policy covers any vehicle damage to the party deemed innocent. Thus the motor liability insurance does not cover any damage to your own car.
”What does the comprehensive motor vehicle insurance (Kasko) cover?”
The comprehensive motor vehicle insurance covers any damage to your own car. Insurance companies offer a wide range of motor vehicle insurance packages. They may include accident or collision insurance or fire and theft covers etc.
”There is often talk about bonus systems. What do they actually mean?”
If your motor liability insurance has a reward system, your insurance premiums go down every year you do not make a claim for an accident. If you have an accident, you lose some of your bonus. Your bonus discount may be up to 70–80%, in which case it may be better to pay for smaller damage yourself rather than making a claim and losing your bonus. It is a good idea to read more about these reward systems before taking up an insurance, as they differ between insurance companies and insurance policies.
”And what does an insurance deductible mean?”
Each insurance policy includes a deductible which is the amount of money you are obliged to pay in the event of a claim while the insurance company will cover the rest. Check the amount of deductible your insurance company has set, as it also varies depending on the insurer.
”Where is my insurance valid?”
Everywhere in the EEA, ie in the EU countries, Norway, Liechtenstein and Iceland, and in all the Green Card countries, ie all the other European countries (except Kosovo) and some countries in the Middle East and North Africa. Check from your insurance company in which countries your car insurance is valid.
”What type of an insurance policy does Nordea Car Finance offer?”
Read more about our comprehensive Liikennekasko insurance policy here.