Green card

What it means

A green card is the international certificate of compulsory motor liability insurance. The insurer issues it with the policy and it proves cover at a roadside check or after an accident abroad.

Under the green card system a claim is handled by the rules of the country where the accident happened, but with the at-fault vehicle’s insurer. That shortens the path to payment considerably.

A green card adds no cover beyond motor third-party liability. It does not insure damage to your own vehicle or injury to the driver who caused the accident; that is what own-damage cover and accident insurance are for. The card merely confirms that compulsory liability cover applies in the countries listed on it and not struck out.

How it works in practice

In a company vehicle it lives with the registration certificate. Drivers benefit from a simple accident procedure: what to photograph, which form to complete, whom to call.

The European accident statement completed on the spot speeds up claims handling more than any later explanation. A copy belongs with the vehicle’s accounting records.

For company cars that also travel outside the EU, we recommend checking before the trip that the destination is listed on the card. A country outside the system requires border insurance bought separately. If the driver pays for it, the receipt goes with the travel expense claim and the company reimburses it as a cost of the business trip.

What to watch out for

The card’s validity follows the policy: it lapses when the insurer changes or the premium goes unpaid. At a check abroad that means a fine, and at worst the vehicle being detained.

With a leased or borrowed vehicle the policyholder is often not the user, and the card is issued under their policy. Drivers should not assume the leasing company holds it but carry it themselves. A missing card after an accident abroad does not void the cover, but it makes handling the claim much slower and messier.