Folksam

territorial_scope

The traffic insurance (MTPL) is valid worldwide under TSL for damage in connection with traffic using a Swedish-registered vehicle, affecting Swedish citizens or persons resident in Sweden. All other coverages (property damage, legal protection, etc.) apply in EEA countries and other countries connected to the Green Card system, and also during transport between these countries. For deregistered (avställd) vehicles, coverage applies in Sweden only. Some countries require a physical Green Card to be presented.

green_card_rules

Sweden is a member of the Green Card system. Folksam issues an international insurance certificate (Green Card / Grönt kort) on request, free of charge. The Green Card is required for proof of insurance when driving in certain non-EEA Green Card system countries. EEA countries generally accept the vehicle registration document as proof of insurance. The traffic insurance applies worldwide per TSL regardless of Green Card issuance for Swedish citizens/residents.

driver_restrictions

The policyholder must be the owner and primary user of the vehicle. It is not permitted to register the policy under another person (e.g. a family member) if you are the actual owner; the policy would then be invalid. The driver's licence must be valid in Sweden: EEA licences are valid as long as valid in the home country; non-EEA licences are valid for up to 1 year after Swedish registration. Without a valid Swedish personal identity number (personnummer) or coordination number (samordningsnummer), a policy cannot be taken out. Driving without a valid licence triggers an elevated excess of 10% of one price base amount. Under-24-year-old drivers face a standard excess surcharge of 1,000 SEK on traffic claims.

claim_notification_deadline

Claims must be reported to Folksam as soon as possible. Theft, unlawful taking, vandalism, collision with animal, or damage caused by an unknown motor vehicle must also be reported to the police in the country where the event occurred. A copy of the police report must be provided to Folksam. Damage occurring during transport on another vehicle must also be reported to the transport company. The right to compensation is lost if legal action is not commenced within 10 years of the event giving rise to the claim (prescription). Once a claim has been submitted, there is always at least 6 months to commence legal action from the date Folksam declares its final position.

bonus_malus_rules

Traffic insurance uses a bonus/malus class system (classes 1–8+). New policies start in class 7. Policies with a claim in the last year start in class 6. Moving from class 7 to class 8 requires 15 consecutive claim-free years. Each claim resulting in a payout reduces the class by one step from the next insurance year. Each claim-free year moves the policy up one class. Policyholders with at least 15 claim-free years do not lose their bonus for the first claim. The bonus is not reduced in certain exempt cases (e.g. damage while vehicle was stolen, damage inspected by police/authority, or damage caused by a proven third party without contributory fault). A separate vagnskade (own-damage) bonus system applies to comprehensive coverages.

Third-party liability (Traffic insurance)

Mandatory motor third-party liability insurance covering personal injury and property damage caused by the insured vehicle

Own damage / Comprehensive collision coverage

Optional coverage for damage to the insured vehicle itself from collision, external events, or vandalism

Glass damage coverage

Coverage for windscreen and glass damage from stone chips or breakage

Theft protection

Coverage for vehicle theft and attempted theft

Fire and explosion coverage

Coverage for vehicle damage from fire, lightning strike, or explosion

Machinery and electronics damage

Coverage for engine, motor, and electronic component failures (excluding wear and maintenance issues)

Rescue and roadside assistance

Coverage for towing and emergency transportation costs when vehicle breaks down

Legal protection

Coverage for legal and attorney costs in motor-related disputes

Rental car coverage

Coverage for rental vehicle costs when insured car is in repair shop due to covered damage

Accidental damage extras (cup holder, fuel tank, key loss)

Optional coverage for incidental damage including cup holder damage from liquids, wrong fuel in tank, and lost or damaged vehicle keys

Mandatory traffic insurance requirement

Swedish law requires all vehicles in traffic to have minimum third-party liability insurance

Policy must be registered to vehicle owner

The policy holder must be the owner of the vehicle or the primary user, not a relative or third party

Driver license validity requirement

The driver's license held by the policyholder must be valid in Sweden for the insurance to be valid

Swedish personal identity number required

Must have Swedish personal identity number (personnummer) or coordination number (samordningsnummer) to be registered as vehicle owner and insured

Deductible (self-insurance) structure

Customer pays a fixed amount per claim depending on coverage level and damage type. Varies by policy choice.

Geographic coverage scope

Third-party liability covers entire world per Motor Traffic Damage Act. Comprehensive and half coverage generally covers European countries with Green Card requirement for some regions.

New vehicle warranty coordination

New vehicles often include manufacturer's damage warranty for 3 years, allowing reduced coverage purchase

Duty of care and diligence

Policyholder must exercise reasonable care and diligence; failure to do so can result in reduced or denied coverage

Bonus/rebate system for policyholders

Folksam is member-owned (mutual insurance) and distributes profits as rebates to customers based on company performance

Multi-policy bundling discounts

Customers can receive discounts by combining home insurance with car insurance