How Car Insurance Works in Denmark

Overview

Denmark’s car insurance system is straightforward once you understand the three tiers. Liability is mandatory and covers damage you cause to others. Everything beyond that is optional but highly recommended, especially for newer or more expensive cars.

Insurance is tied to the car, not the driver — anyone with a valid licence can drive an insured car (unless the policy specifically restricts it). Prices vary enormously based on the car, your age, driving history, and where you live.

Mandatory: liability insurance (ansvarsforsikring)

Danish law requires every registered vehicle to have liability insurance. This covers:

• Damage to other people’s property — their car, bike, fence, building, etc.
• Personal injury to others — medical costs, rehabilitation, lost income
• Legal costs if you’re sued after an accident

It does not cover damage to your own car, theft of your car, or your own injuries (those are covered by Denmark’s public health system and potentially your own accident insurance).

Types of coverage

1. Ansvarsforsikring (liability only)

The legal minimum. Covers damage you cause to others. Cheapest option. Suitable for: very old, low-value cars where repair/replacement wouldn’t be worth claiming anyway.

2. Delkasko (partial comprehensive)

Liability plus coverage for theft, fire, vandalism, and glass damage to your own car. Does not cover collision damage to your own car. Suitable for: mid-value used cars where theft/fire is a bigger risk than collision damage you’d pay out of pocket.

3. Fuld kasko (full comprehensive)

Everything in delkasko plus collision damage to your own car — regardless of who’s at fault. Suitable for: newer cars, leased cars (where kasko is usually required), or any car you couldn’t afford to replace out of pocket.

Coverage comparison table

Typical costs (2026)

These are approximate ranges for a 30–50-year-old driver with no claims history. Young drivers (under 25) pay significantly more — often 50–100% extra.

What affects your premium

• Car model and value: More expensive cars cost more to insure. Powerful/sporty cars have higher rates.
• Your age: Under 25 pays the most. Rates decrease until ~55, then can increase slightly.
• Postcode: Copenhagen and other cities have higher rates due to more claims (theft, parking damage).
• Annual mileage: Lower mileage = lower premium. Most insurers ask for an estimate (e.g., under 15,000 km).
• Claims history (bonus): Denmark uses a bonus/malus system. See the no-claims section below.
• Deductible (selvrisiko): A higher deductible (2,500–10,000 DKK) lowers your annual premium.
• Number of drivers: Restricting to named drivers can reduce cost.
• Payment frequency: Monthly payment is usually slightly more expensive than annual.

Main insurance providers

How to get insured

1. Get quotes online. Most providers have English or partly-English quote tools. You’ll need: car registration number (or details of the car you’re buying), your CPR number, and information about your driving history.
2. Choose coverage level. Ansvar for old cheap cars, fuld kasko for new/valuable cars. See the comparison table above.
3. Set your deductible (selvrisiko). Standard is 3,884 DKK (2026). Higher deductible = lower premium. Consider what you can afford to pay out of pocket.
4. Buy the policy. You’ll receive a policy number immediately — you need this to register your car.
5. Proof of insurance is recorded digitally in the DMR system. You don’t carry a paper card.

Switching insurance provider

You can switch providers at any time with 30 days’ notice — you’re not locked into annual contracts. Your no-claims bonus transfers between providers. Steps:

1. Get a quote from the new provider.
2. Accept the new policy (they handle the switch notification).
3. The old policy is cancelled automatically on the transfer date.
4. Any pre-paid premium from your old insurer is refunded pro-rata.

Making a claim

If you cause an accident

1. At the scene: Exchange details with the other party. Fill in a damage report (skadeanmeldelse) — your insurer provides the form, or use their app.
2. Report to your insurer within 24 hours. Most have an app or online claims portal.
3. Police report: Required if anyone is injured, or if you suspect the other party was driving under the influence.
4. Repairs: Your insurer will direct you to an approved repair shop, or you can choose your own (may affect coverage).

If someone else causes the accident

The other driver’s ansvarsforsikring pays for your damage. Contact their insurer directly, or let your own insurer handle it (they’ll recover costs from the other party’s insurer). You don’t lose your no-claims bonus for claims where you’re not at fault.

The bonus/no-claims system

Denmark uses a bonus scale that rewards claim-free driving. You start at step 0 and gain one step per claim-free year, up to a maximum (typically step 6–8, depending on the insurer). Each step gives a higher discount:

When you make an at-fault claim, you drop back 2–3 steps. This is why some people pay small claims out of pocket — the premium increase over several years can cost more than the repair. Your no-claims history transfers between insurers.

Roadside assistance (vejhjælp)

Roadside assistance is not included in standard car insurance. You need to add it separately:

• FDM (Danish Automobile Association): The most popular option. ~600–1,200 DKK/year depending on level. Covers breakdown, flat tyres, lockouts, towing. FDM also offers pre-purchase inspections and travel insurance.
• SOS International: Often available as an add-on to your car insurance policy.
• Falck: Denmark’s main emergency and roadside service. Available through some insurance packages.

Common problems

My premium is very high because I’m young / new to Denmark

Young drivers (under 25) and people without Danish driving history pay the most. Options: increase your deductible, restrict mileage, add yourself as a named driver on a family member’s policy first to build history, or ask if your foreign no-claims bonus can be transferred.

My insurer won’t accept my foreign no-claims history

Try a different insurer — policies vary. If and Tryg are generally more flexible. Get a formal letter from your previous insurer stating your claims history, years insured, and bonus level. Have it translated to English if it’s in a non-Nordic language.

I had an accident — will my premium go up?

If you made an at-fault claim, your bonus drops 2–3 steps. This typically increases your premium by 20–40% for the next 2–3 years until you rebuild your bonus. Not-at-fault claims generally don’t affect your bonus.

My car was stolen — what now?

Report to the police immediately (call 114). Then contact your insurer. If you have delkasko or fuld kasko, theft is covered. The insurer pays the car’s market value minus your deductible. If you only have ansvar, theft is not covered — you’ll need to absorb the loss.

Questions and answers

Can someone else drive my car?

Yes — Danish insurance covers the car, not specific drivers (unless your policy restricts it). Anyone with a valid licence can drive your insured car. Some policies offer a discount for restricting to named drivers only.

Do I need insurance before I pick up the car?

Yes. You cannot drive legally without insurance, and you cannot register a car without it. Buy your policy before taking delivery — most insurers issue a policy number within hours online.

Is my insurance valid in other EU countries?

Yes — Danish ansvarsforsikring includes a green card that provides liability coverage throughout the EU and some non-EU countries. Kasko coverage may have limitations abroad — check your policy. Extended coverage for European trips is usually available as an add-on.

What’s a typical deductible?

The standard selvrisiko is 3,884 DKK in 2026. You can usually choose 2,500 DKK (higher premium) or up to 10,000 DKK (lower premium). Choose based on what you could afford to pay out of pocket in a claim.