Why and to whom to pay for an uninsured car?  The guarantee fund protects against crooks
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For a number of reasons, it can happen that a person has a car at home that is properly registered and has tags, but is not insured. Maybe because he works on it over the winter – performs maintenance and repairs, so he doesn’t drive the car. In such a case, it is understandable that there is no point in paying liability insurance for the operation of the vehicle (abbreviated as POV) – the vehicle is not operated.

But this has one major drawback. The law assumes that a vehicle that is registered as in operation also actually drives on the roads, and therefore it must be insured. That is why there is a so-called obligation to pay a contribution to the ČKP guarantee fund (Czech Insurance Office).

This contribution was originally introduced in 2014, but it was canceled already in 2015 due to frequent unauthorized requests for payment by the CCP. However, it was reintroduced in January 2018.

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The guarantee fund serves to cover damages caused by drivers of vehicles without liability insurance. Although it then recovers the costs from the culprits, in 2017 when the mandatory contribution was reintroduced, it argued that honest motorists participate in the payment of these compensations from their paid liability insurance.

The contribution rate currently ranges from 4 to 563 crowns depending on the type of vehicle; everything from small motorcycles up to 50cc to buses and tractors is included. This rate is paid for each day the vehicle does not have an agreed POV, so it can climb into the tens of thousands quite quickly.

How to avoid it? There are two ways. An obvious option is to normally arrange a compulsory insurance policy for a newly purchased car. The second, suitable when you do not plan to drive the car for a long time, is to remove the car from the register and hand over its registration plates. It is popularly called “deposit”, but officially this term is no longer used.

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If you are on the selling side in the process of changing the car’s owner, it makes the most sense in connection with the contribution to the warranty fund not to rely on the buyer to do everything according to the agreement, and to ensure the transfer yourself. Either in cooperation with the buyer or with a power of attorney.

If the buyer does not fulfill his part of the agreement and the car is still registered in your name, but you cancel the compulsory warranty based on the purchase contract, the ČKP will contact you with the reimbursement contribution. It will then prove to you that you are not the real owner or operator of the car.

However, that is not all – it is the responsibility of the seller, not the buyer, to ensure the transfer of the vehicle. If he does not fulfill it, he risks a fine of up to 50,000 crowns.

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