The basic principle of compulsory motor third-party liability insurance (MTPL) is that a vehicle in circulation must have cover for every single day. Where a gap still opens up, the system’s least popular item kicks in: the uncovered-period fee. It isn’t called a penalty – but in practice, it’s worth thinking of as the most expensive “cover” you could ever end up paying for.
- An uncovered-period fee applies to every calendar day without cover – settled afterwards, when the new policy is taken out, under the rules in force.
- Its daily rate is published annually (by MABISZ, the Association of Hungarian Insurers) – typically noticeably higher than the daily level of normal premiums.
- Claims caused during an uncovered period are still settled with the injured party, but the cost can be recovered from the at-fault driver.
When does an uncovered period arise?
Three typical sources: the days following a lapse for non-payment; a gap between buying a car and taking out the new policy (which is why the article on buying and selling a car urges you to arrange cover from the day you take possession); and a badly timed switch, where the old policy ends before the new one starts. What they have in common is that none of them are intentional – but the system doesn’t look at intent, only at the days.
How is it calculated – and why is it so expensive?
The uncovered-period fee is calculated per calendar day: the annual, publicly announced rate (published by MABISZ, by vehicle category) is multiplied by the number of uninsured days, and becomes payable when the new policy is taken out, under the rules in force. We won’t quote a specific figure here – the rate changes every year – but the order of magnitude can be stated: it’s typically several times the daily level of ordinary market premiums.
The high cost has a systemic reason: an uncovered period is a risk borne by the wider community, and the fee needs to have a deterrent effect. It works, too: once someone has paid an uncovered-period fee, they rarely let it happen a second time.
The bigger stake: a claim during uncovered days
The uncovered-period fee is only the smaller risk. If the vehicle causes a claim during an uninsured period, the injured party is compensated from the Compensation Account – but the amount paid out can then be recovered from the uninsured registered keeper. For a serious claim, this is the sum next to which the uncovered-period fee looks like a rounding error. So the rule is simple: not a single metre with an uninsured vehicle.
How to avoid it – and what to do if it’s already happened?
Avoiding it comes down to mostly gap-free administration: arranging cover from the day you take possession when buying a car, starting the new policy exactly on the renewal date when switching, and keeping premium payments in order – see the three articles on starting a new policy, the step-by-step switching process, and the routine for avoiding the traps. And if the uninsured days have already happened: take out the new policy immediately, and settle the uncovered-period fee in one go – disputable items (for example, an incorrect record) can be queried, and I can help with that.
FAQ: where can you check the current rate?
MABISZ publishes the annual rates for the uncovered-period fee – the mabisz.hu website lists the announced daily rates by year and vehicle category. We deliberately don’t quote figures here: the rate changes every year, and the aim of this article is to explain the mechanism, not to record a figure that will soon be out of date. If you’re affected – if you’ve ended up with uninsured days – two steps are worth taking: check the current year’s rate in the official publication, and ask the insurer or me for an exact calculation for your specific days. The best way to avoid surprises, though, stays the same: make sure there are no uninsured days in the first place – which is exactly what the rest of this article is about.
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