Motor third-party liability — Hungary

What is MTPL (Kötelező Gépjármű-Felelősségbiztosítás) in Hungary and who is required to have it?

Motor Third-Party Liability (MTPL) insurance, known in Hungary as Kötelező Gépjármű-Felelősségbiztosítás (KGFB), is mandatory under Act LXII of 2009 (2009. évi LXII. törvény a kötelező gépjármű-felelősségbiztosításról) for every keeper (üzemben tartó) of a motor vehicle registered in Hungary. A valid KGFB must be in place before the vehicle is used on public roads — proof is verified electronically through the MABISZ KGFB Központi Nyilvántartás. The policy covers damages caused to third parties by the insured vehicle and does not extend to damage to your own vehicle or your own bodily injury as the at-fault driver.

What are the mandatory minimum coverage limits for KGFB in Hungary?

Under Section 13 of Act LXII of 2009, the statutory minimum cover for KGFB is €6,450,000 per accident for bodily injury, disability or death (regardless of the number of injured persons), and €1,300,000 per accident for property damage (regardless of the number of damaged parties). These limits were aligned with EU Directive 2021/2118 effective 23 December 2023. Every KGFB policy issued in Hungary by Allianz, Generali, Groupama, K&H, Magyar Posta Biztosító, Union, Uniqa, Wáberer, CIG Pannónia and other licensed insurers must meet these EU-aligned minimums.

What does Hungarian KGFB actually cover?

Hungarian KGFB covers damages caused to third parties by the insured vehicle. This includes: bodily injury, disability or death of pedestrians, occupants of other vehicles, cyclists or other road users; property damage to other vehicles, buildings or any third-party property; consequential financial loss flowing from a covered event (e.g. loss of earnings, increased living expenses caused by personal injury); reasonable rehabilitation and medical expenses; and funeral costs. KGFB does not cover damage to your own vehicle (you need a CASCO policy), your own bodily injury as the at-fault driver, intentional acts, racing or losses caused while driving under the influence of alcohol or drugs (with right of recourse against the driver).

Are the at-fault driver's own damages covered?

No. Under Section 11 of Act LXII of 2009, damages suffered by the at-fault driver are excluded from KGFB coverage. If you cause an accident in Hungary you are not entitled to compensation for your own injuries or your own vehicle damage under the obligatory KGFB. For own vehicle damage you need a CASCO (Casco-biztosítás) policy — partial or full — and for personal injury protection you can add a Driver's Accident Insurance (Vezetői balesetbiztosítás) rider that pays a defined sum independently of fault. CASCO is voluntary in Hungary, unlike KGFB.

Are passengers in the at-fault vehicle covered?

Yes. Under Section 3 of Act LXII of 2009, passengers in the insured vehicle who are injured in an accident caused by that vehicle's driver are treated as third parties and their bodily injury, disability, death and reasonable medical expenses are compensated within the KGFB bodily injury limit (€6.45 million per accident). The only exception is the at-fault driver themselves. Compensation may be reduced if the passenger contributed to their own injury (e.g. not wearing a seatbelt). Property damage suffered by passengers (luggage, clothing) is generally not covered by KGFB and requires a separate household or travel insurance.

What is the Hungarian KGFB annual renewal campaign (Kampányidőszak)?

Hungary historically operated a uniform KGFB renewal date — 1 January — with an annual switching campaign (Kampányidőszak) culminating in late November when insurers published the next year's tariffs and policyholders could switch insurers without penalty. Since 1 January 2010 the renewal date is the policy anniversary (the date the policy started), not 1 January, so today a switching campaign runs continuously for each policy 60–30 days before its anniversary date. The cancellation deadline is 30 days before the policy anniversary (Section 21 of Act LXII of 2009). MABISZ publishes the comparative tariff data on its KGFB portal each year for transparency.

What is the Bonus-Malus system in Hungary and how does it work?

Hungary operates a 15-class Bonus-Malus (B-M) system under Government Decree 21/2011 (V.20.) Korm. r. The system runs from M4 (worst — three or more at-fault claims, +160% surcharge) through A0 (entry/no history) to B10 (best — ten years claim-free, up to 70% discount). Each claim-free year moves you up one bonus class (B0→B1, B1→B2, etc.); each at-fault claim moves you down two classes. The B-M class is transferred automatically between Hungarian insurers via the MABISZ central register, but is not transferred from foreign insurance experience by default — though many insurers will accept foreign claim history at policy commencement. Pricing impact of the B-M class varies significantly between insurers and can be 10–60% of the premium.

Which countries does Hungarian KGFB cover?

Hungarian KGFB is automatically valid in: Hungary; all EU Member States and EEA countries — Norway, Iceland, Liechtenstein; Switzerland, Andorra, Serbia and Bosnia and Herzegovina (the Hungarian registration plate is sufficient proof of cover under the multilateral plate-based system); and the United Kingdom, post-Brexit, where the Green Card requirement was reinstated and then waived under the Council of Bureaux. Cover is granted up to the higher of the Hungarian minimums and the local mandatory minimums (per EU Directive 2009/103/EC). For other Green Card system states — Turkey, North Macedonia, Albania, Montenegro, Ukraine, Moldova, Israel, Iran, Morocco, Tunisia — a paper Green Card (Zöld Kártya) is required and is issued by your insurer on request, generally within 1–3 business days.

What must I do immediately after a road accident in Hungary?

After an accident you must: stop immediately and secure the scene (warning triangle at the prescribed distance, hazard lights, high-visibility vest required under the KRESZ); render first aid and call the single European emergency number 112 where there are injuries; call the police (also via 112) where required by law — bodily injury, fatalities, hit-and-run, suspected drunk or drug driving, refusal to exchange details, damage to road infrastructure, or where a foreign-registered vehicle is involved; exchange identity, vehicle and KGFB details with the other party and complete the European Accident Statement (Kék-sárga baleseti bejelentő); photograph the scene and damage from multiple angles; and notify your KGFB insurer within 5 working days of the accident under Section 27 of Act LXII of 2009. Late notification can lead to a reduction of compensation or right of recourse by the insurer.

Can I buy Hungarian KGFB online and pay in instalments?

Yes. All major Hungarian insurers — Allianz, Generali, Groupama, K&H, Magyar Posta Biztosító, Union, Uniqa, Wáberer, CIG Pannónia — offer online subscription through their own portals and through licensed brokers and comparators (Netrisk, Biztosítás.hu, CLB, AlphaPénzügyek). The KGFB takes effect from the date stated in the policy and the policy is registered electronically with the MABISZ KGFB Központi Nyilvántartás. Instalments are standard: annual, half-yearly, quarterly or monthly payments are offered, often with a small instalment surcharge (typically 2–4%). Premium calculation uses the keeper's Bonus-Malus class, vehicle category, engine power, place of registration, age of keeper, and driving experience. From 2021 onward online subscription and electronic confirmation of KGFB is fully legal under Hungarian e-commerce and insurance regulations.