Compulsory insurance in Finland: which you must take and which you need not

Motor insurance: for every vehicle in road use

Motor insurance is compulsory for every motor vehicle in road use. According to the Motor Insurers' Centre, a vehicle is in traffic also in yards, fields, forests and on ice, so the insurance obligation is not limited to public roads. A vehicle in the vehicle register must always have motor insurance.

Seasonal vehicles, such as mopeds and snowmobiles, must be insured immediately after purchase. A snowmobile must always have traffic insurance when driven. An inherited vehicle must be insured within seven days of the distribution of the estate or the will becoming legally valid.

Some light electric vehicles also need motor liability insurance. According to the rule of thumb from the Finnish Motor Insurers' Centre, insurance is required if the motorised device weighs over 25 kilograms or its speed exceeds 25 km/h.

Motor insurance compensates personal injuries arising in a traffic accident, including to the driver and passengers of the vehicle that caused the damage, as well as property damage caused to others. It does not compensate damage to your own car; for that there is voluntary comprehensive (casco) insurance.

What follows from neglect

If a vehicle lacks motor liability insurance, the Finnish Motor Insurers' Centre collects an uninsured vehicle fee. In 2025 the fee was imposed on about 32 000 vehicles. More than half of the lapses lasted at most a week, and for a short lapse the fee for a passenger car is typically about 70 euros.

For a prolonged failure, the charge can rise above 10,000 euros. In 2025, charges of over 5,000 euros were imposed on about 300 vehicles, and nearly two thirds of the largest charges concerned motorcycles. The charge is levied for the current calendar year and the five preceding ones.

If a vehicle is not in use, it can be taken out of traffic in Traficom's or the insurer's service. Deregistration ends the insurance obligation.

Entrepreneur: YEL insurance

An entrepreneur must take out YEL insurance if estimated earned income is at least 9 423 € a year (2026) and the business has continued uninterrupted for at least four months. The insurance obligation applies to entrepreneurs aged 18–69. Owning a company alone is not enough; the entrepreneur must also work in the company.

In 2026 the YEL contribution is 24.4% of the confirmed YEL work income. A new entrepreneur receives a 22% reduction on the contribution for four years. In addition to the pension, YEL work income affects, for example, the amount of Kela's sickness allowance and parental allowance.

The level of earned income is worth choosing carefully. For example, to receive an entrepreneur's earnings-related unemployment security in 2026 requires annual YEL earned income of at least €15,481. Earned income estimated too low reduces not only the pension but also sickness and parental allowances.

Employer: TyEL and occupational accident insurance

The employer must insure its employees' pension cover with a TyEL policy. The obligation also applies to a household that hires, for example, a cleaner or a childminder under an employment relationship. In 2026 the TyEL contribution averages 24.4% of pay, of which the employee's share is 7.30%.

Statutory workers' compensation and occupational disease insurance is mandatory if the employer pays wages totalling more than 1,200 euros in a calendar year. It is worth taking out the insurance before the limit is exceeded.

The employer's share of the TyEL contribution in 2026 averages 17.10%. According to the agreement of the central labour market organisations, contributions will remain unchanged in 2027, and the Ministry of Social Affairs and Health confirms them late in the year. Employer's side costs also include, among others, the health insurance contribution, the unemployment insurance contribution and the accident insurance premium.

Voluntary insurance

Home insurance, comprehensive car insurance, travel insurance, life insurance and boat insurance are voluntary. Home insurance is nevertheless the most common voluntary insurance: in Finance Finland's 2025 insurance survey, 84% of respondents' households said they have home insurance. Comprehensive car insurance was held by 49%, travel insurance by 45% and life insurance by 26%.

Although the law does not require it, a landlord may require the tenant in the lease to hold home insurance, and a lender may require the property used as collateral to be insured. So check your own agreements.

Kela's European Health Insurance Card is free of charge, but it does not replace travel insurance. Kela stresses that the card and travel insurance complement each other.

Review your insurance when your life situation changes

Insurance needs change when you move, buy a car, set up a company or hire your first employee. Go through which insurance policies are mandatory and whether your voluntary policies have overlaps or gaps.

Insurance Radar tells you impartially which insurance policies are mandatory and where to get help. It does not sell, compare or recommend insurance policies or insurers. You can check the registration of an intermediary offering insurance in the Financial Supervisory Authority (FIN-FSA) register of insurance intermediaries.

Frequently asked questions

Is home insurance mandatory?

It is not. Home insurance is voluntary, but the landlord can require it in the lease. In 2025 home insurance was held by 84% of respondents' households (Finance Finland).

Does an electric scooter need motor liability insurance?

According to the Motor Insurers' Centre's rule of thumb, insurance is needed if the motorised device weighs more than 25 kilograms or its speed exceeds 25 km/h.

When must an entrepreneur take out YEL?

When estimated earned income is at least €9,423 a year (2026) and the business has lasted continuously for at least four months.

What does it cost if you forget your car's motor liability insurance?

The Motor Insurers' Centre charges an uninsured fee. For a short lapse on a passenger car it is typically about 70 euros, for a long one even over 10 000 euros.

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.