Greece to mandate natural disaster insurance for all vehicles starting June 1

The regulation applies not only to operational vehicles but also to those officially declared as non-operational and with license plates returned. According to the law, vehicles without such coverage will not be eligible for state compensation in the event of damage resulting from natural catastrophes.

To comply with the new requirements, insurance companies in Greece are preparing special policies focused exclusively on natural disaster risks. These are expected to be particularly relevant for vehicles that are not in use.

The Hellenic Association of Insurance Companies announced that insurance premiums for natural disaster coverage will be calculated based on the current market value of the vehicle. The estimated cost is relatively low, ranging between €1 and €1.50 per €1,000 of a vehicle’s value. For instance, insuring a vehicle worth €10,000 would cost approximately €15 per year.

Currently, natural disaster protection is not a standard part of most vehicle insurance policies. Approximately 71.5% of insured drivers in Greece opt for basic third-party liability coverage, which is legally required. Only 23.8% include fire or theft coverage in their policies. The most popular additional coverage remains roadside assistance.

Vehicle owners are encouraged to contact their insurance providers or brokers to update their policies and ensure compliance with the new mandate. Failure to obtain this coverage could result in financial vulnerability in the face of increasingly frequent extreme weather events.