Automobile Liability Insurance and Casco Insurance

What is compulsory automobile liability insurance?

Automobile liability insurance is a legally required insurance which you conclude when registering motor vehicle. This insurance covers your liability as the owner, and/or the user, when while driving the motor vehicle you cause a damage to third parties, to the extent of either death, body injury, health impairment, destruction or damaging the property, except for the damage made on things which were admitted for transport.

In case you conclude the automobile liability insurance contract, the insurance company will, on your behalf, indemnify all material and immaterial damages suffered by the third parties if you are the one responsible for causing the car accident.  

The insured party loses the insurance rights, only in the following cases:

  • if the driver did not use the motor vehicle according to its intended purpose,
  • if the driver did not have a driving license allowing him/her to drive a certain category of motor vehicle,
  • if the driver had his/her driving license revoked or the court ruled a protective measure against the driver, prohibiting him/her to drive a motor vehicle,
  • if the driver, at the time of accident, was driving the motor vehicle under the influence of alcohol or other abuse substances,
  • if the driver deliberately caused the damage,
  • if the damage was caused due to technical fault in vehicle,
  • if the driver, after the car accident, left the scene without giving his/her personal data and insurance data.

Bonus  Malus System

Insurance premium for certain vehicle is determined by applying appropriate premium rate, depending on whether you had a damage reported in the previous period for which you were responsible. If you did not have any damages, when concluding the insurance contract you can expect the reduction and if during the preceding period there was damage(s) reported, you can expect the increase on your premium insurance.

European Report on Car Accident

In line with the new Law on compulsory transport insurance, all motor vehicle drivers are obliged, in addition to automobile liability insurance policy, to keep in the vehicle a copy of the European report on car accident and to show it at the request of the authorized official.  If you conclude the automobile liability insurance policy in Komercijalna banka, along with the insurance policy you will receive a free copy of the European report.
The European report on car accident is a standard form used in whole of Europe and is deemed valid in lieu of police report in case of minor material damages in the car accidents in which no persons are injured and where the participants agreed on liability for the damage.

The automobile liability insurance policy does not cover the damages to one’s own vehicle; these kinds of damages are covered by Casco insurance.

Casco Insurance – Secure Your Car

Think ahead and insure your car! Casco car insurance will provide you a maximum protection in case of any material damage that may be caused to your vehicle in the country and abroad, due to:

  • car accident (caused even by your fault),
  • fall or blow/impact of some object,
  • fire, explosion or flood,
  • recalcitrance of third parties...

You can opt for insurance with share (5%, 10% and 20%), or without share in damage.
You can obtain special discount:

  • based on not having any damage reported in previous years of insurance,
  • based on duration of insurance, up to 10%,
  • based on number of insured vehicles, up to 10%,
  • based on possession of protective devices.

Example for insurance of new vehicles (with theft risk included):

Example for insurance of new vehicles (with theft risk included)


Vehicle make and type

Purchase price of new vehicle (EUR)

Insurance premium with relative share in damage (EUR)





I (up to EUR 10.000)

Fiat Punto 188*






II(from EUR 10.001-20.000)

Škoda Oktavia 1,9






*calculation includes the tax on non-life insurance of 5%
*insurance premium does not include discounts
*purchase prices for new vehicles are approximate and include customs duties and VAT