Motor Vehicle
Frequently asked questions about motor vehicle insurance.

Why buy motor vehicle insurance?
Motor Vehicle Civil Liability Insurance is mandatory and covers the vehicle's owner or driver liability in respect of any damage caused to third parties. The lack of motor vehicle insurance is sanctioned by law and may lead to seizure of the vehicle, payment of a fine and, in case of an accident, the owner or driver my incur serious liabilities given the compensation that may be requested from him/her.

When driving, which documents shall I carry always?
Please try to carry the following: Identity Card/Citizen's Card; Driving Licence, Vehicle Registration Document; Ownership Document; insurance document (green card, provisional card insurance), Annual Car Tax receipt, and a copy of the Car Accident Statement (DAAA), in case an accident occurs.

Who should buy motor vehicle insurance?
Any vehicle owner, long-term user, buyer or lessee should buy motor vehicle insurance.

Is the Travel Assistance coverage valid abroad?
Most travel assistance policies provide cover in Europe and the Mediterranean basin countries. However, the validity of some policies are different, such as Personal and Luggage Assistance, which provide cover in most parts of the world, or Wheel Replacement, in case of a flat tyre, or Lack or Replacement of Fuel, which are valid only Portugal.

If someone else drives my car, can he/she benefit from the insurance?
Yes, if he/she holds a valid driving licence. Otherwise, in case of an accident, the Insurer shall compensate the injured parties in accordance with the mandatory insurance cover, and shall have the right to seek reimbursement from the driver for any compensation paid.

What should I do in case of a car accident?
If only the cars involved are damaged, you should fill in the Motor Vehicle Accident Statement (DAAA). This form is used to name the parties involved, Insurers, any witnesses, and describe the circumstances of the accident. The DAAA shall be signed by the drivers involved in the accident and each of them shall give his/her copy to the relevant Insurer. If there are any witnesses, you should provide the Insurer with the relevant contact details. Their depositions can be crucial when determining liability. While you can waive any police force involvement, it may be useful where the damage is serious or the circumstances of the accident are unclear. In case anyone is injured, you should seek to bring in the police in order to make the official report of the accident.

What is the Direct Indemnity to the Insured (IDS) convention?
The IDS Convention is a Direct Indemnity to the Insured agreement, subscribed by almost every Insurer that offers motor vehicle insurance in Portugal; its aim is to make the settling of most road accidents occurring in our country easier and simpler. This convention settles only property damage arising from repairs and/or total loss, expenses incurred in removal and towage, collection and costs other than loss of profit. The main benefit of this Convention is that it allows you to settle your accident with your own Insurer, without having to call the Insurer of the party that caused the accident. However not all claims can be settled under this convention. For this to happen, the following conditions have to be met: The accident must have occurred in Mainland Portugal, the Azores or Madeira; cars must be insured with two participating Insurers and the DAAA must be duly filled in and signed by both drivers; no more than two motor vehicles may be involved and direct contact must have occurred between both; and the cost of repairing the damaged motor vehicle must not exceed €15,000.

What does the Car Guarantee Fund guarantee?
This Fund guarantees payment of the indemnities due in respect of bodily injuries or property damages through car accidents caused by non-insured motor vehicles.

If repair is not feasible in case of accident, how is my motor vehicle's commercial value assessed?
If the other party (Third Party) is liable for the accident, the amount to be paid to you shall be the commercial value of the motor vehicle at the accident and the salvage value shall be deducted from any indemnity to be paid, if you are to keep the salvage.