Car Insurance Terminology
Understanding the language of Swedish car insurance
Navigating car insurance in Sweden can be challenging, especially for non-Swedish speakers. This glossary explains common insurance terms and Swedish-specific concepts to help you better understand your policy options.
We've included both English insurance terminology and Swedish terms you'll encounter when shopping for car insurance in Sweden.
A
Accident (Olycka)
An unexpected, sudden event resulting in damage to a vehicle or injury to a person. In insurance terms, accidents must generally be unforeseen and unintentional to qualify for coverage.
Act of God (Force Majeure / Naturkatastrof)
An event outside of human control, such as floods, earthquakes, or other natural disasters. Whether these are covered depends on your specific policy type.
Actual Cash Value (Dagsvärde)
The current market value of your vehicle, accounting for depreciation from age, condition, and wear and tear. This is what standard insurance policies typically pay in the event of a total loss.
Additional Insured (Medförsäkrad)
A person other than the policyholder who is covered by the insurance policy. In car insurance, this might include family members or others who regularly drive the vehicle.
Assistans
Roadside assistance coverage that provides help if your vehicle breaks down, including towing services, battery jumps, fuel delivery, and lockout services.
B
Bonus (No-claims Bonus / Bonus)
A discount given to policyholders who haven't made claims over a specified period. In Sweden, this is often expressed as a percentage discount on the premium and increases with each claims-free year.
Besiktning
The mandatory vehicle inspection required in Sweden, typically conducted annually for older vehicles. Having a valid inspection is often a prerequisite for insurance coverage.
C
Comprehensive Insurance (Helförsäkring)
The most complete form of auto insurance in Sweden, covering damage to your vehicle regardless of fault, plus theft, fire, vandalism, and third-party liability.
Claim (Skadeanmälan)
A formal request to your insurance company for payment based on the terms of your policy. In Sweden, claims can typically be filed online, by phone, or through a mobile app.
Coverage Limit (Ersättningsbelopp)
The maximum amount an insurance company will pay for a covered loss. Swedish policies typically have different limits for different types of coverage within the same policy.
D
Deductible (Självrisk)
The amount you pay out of pocket when making a claim before your insurance coverage kicks in. In Swedish policies, there are often different deductible amounts for different types of claims.
Depreciation (Värdeminskning)
The decrease in your vehicle's value over time due to age, wear, and market factors. Insurance companies consider depreciation when determining payouts for claims.
Direktreglering
The "direct settlement" system in Sweden where your own insurance company handles your claim even if another driver was at fault, then seeks reimbursement from the at-fault party's insurer.
E
Exclusion (Undantag)
Specific conditions, situations, or items that are not covered by your insurance policy. Common exclusions include wear and tear, mechanical breakdowns, and deliberate damage.
Endorsement (Tilläggsförsäkring)
An addition or amendment to your basic insurance policy that modifies its terms or coverage. In Sweden, common endorsements include extended geographic coverage or specialized vehicle protection.
F
Försäkringsbolag
Insurance company that provides coverage in exchange for premium payments. Major insurance companies in Sweden include If, Folksam, Trygg-Hansa, and Länsförsäkringar.
Försäkringsbrev
Insurance policy document or certificate that outlines the terms, conditions, coverage limits, and exclusions of your insurance agreement.
Försäkringspremie
The premium or amount paid for insurance coverage, typically quoted as an annual amount but often payable monthly in Sweden.
G
Glasförsäkring
Glass coverage that protects against damage to your vehicle's windshield and windows. In Sweden, this often comes with a lower deductible than other types of claims.
Green Card (Grönt kort)
An international certificate of insurance that proves you have the minimum insurance required in countries you visit. For travel outside the EU, this may be necessary.
H
Halvförsäkring
"Half insurance" - a medium level of coverage that includes mandatory third-party liability plus protection for fire, theft, glass damage, and roadside assistance, but does not cover damage to your own vehicle in at-fault accidents.
Helförsäkring
"Full insurance" or comprehensive coverage that includes everything in Halvförsäkring plus collision coverage for your own vehicle regardless of fault.
I
Indemnity (Ersättning)
The compensation provided by an insurance company to restore an insured to the same financial position they were in before the loss or damage occurred.
L
Liability Insurance (Ansvarsförsäkring)
Coverage for damage or injury you cause to others. In Swedish car insurance, this is part of the mandatory Trafikförsäkring.
M
Maskinskadeförsäkring
Engine and mechanical breakdown insurance that covers repair costs for mechanical failures. This is particularly important for newer vehicles and is often limited to cars under a certain age or mileage.
Motorförsäkring
Motor insurance, the general term for auto insurance in Sweden.
N
No-Claims Bonus (Bonusrabatt)
A discount given for each year without making an insurance claim. In Sweden, this can significantly reduce your premium over time.
P
Premium (Premie)
The amount paid for insurance coverage, usually on a monthly, quarterly, semi-annual, or annual basis.
R
Roadside Assistance (Vägassistans)
Service that provides help if your vehicle breaks down, including towing, battery jumps, and lockout services. In Swedish policies, this is often called "Assistans" or "Bärgning."
Rättsskydd
Legal expenses coverage that helps pay for legal representation in disputes related to your vehicle, such as disagreements about repairs or liability.
S
Stöldförsäkring
Theft insurance that covers the loss of your vehicle or its components due to theft, as well as damage caused during a theft or break-in attempt.
Skadereglering
The claims adjustment process where an insurance company investigates, evaluates, and settles a claim.
Självrisk
The Swedish term for deductible - the amount you pay out of pocket when making a claim before insurance coverage applies.
Skadestånd
Compensation or damages paid to a third party who suffers injury or property damage as a result of the insured's actions.
T
Trafikförsäkring
The mandatory third-party liability insurance required for all vehicles in Sweden. Covers damage you cause to other people and their property, but not damage to your own vehicle.
Tilläggsförsäkring
Additional or supplementary insurance coverage that extends beyond the basic policy. Common add-ons include rental car coverage, enhanced accident protection, or gap insurance.
Total Loss (Totalskada)
When a vehicle is damaged to the extent that repair costs would exceed its current market value, or when it's stolen and not recovered. In these cases, the insurer typically pays the vehicle's actual cash value rather than funding repairs.
U
Underwriting (Riskbedömning)
The process insurance companies use to evaluate risk and determine premium rates. Factors considered include driving history, vehicle type, location, and usage patterns.
V
Vagnskadeförsäkring
Collision damage insurance that covers damage to your own vehicle in an accident, regardless of fault. This is what distinguishes Helförsäkring (full insurance) from Halvförsäkring (half insurance).
Vagnskadegaranti
A collision damage warranty that often comes with new vehicles purchased in Sweden. It functions similarly to collision insurance and typically lasts for three years from the vehicle's purchase date.
Vållande
Fault or negligence in causing an accident. While Sweden has a no-fault insurance system for personal injuries, fault determination still matters for vehicle damage claims and can affect your no-claims bonus.