Car without compulsory motor liability insurance: Guarantee Fund notice and terminated registration
A notice from Bulgaria’s Guarantee Fund about missing compulsory motor third-party liability insurance calls for a prompt check. Failure to provide evidence of valid insurance within the statutory period may lead to the vehicle’s registration being terminated administratively. Having number plates and a registration certificate does not prove that the registration is still active.
Is insurance required if the car is not being used?
Under the general rule in Article 483(1)(1) of the Insurance Code, the owner of a vehicle registered in Bulgaria that has not formally been taken out of use must obtain compulsory insurance. Simply leaving a car in a garage, in a car park or on private property is not equivalent to formally taking it out of use under the applicable procedure.
This means that saying “I do not drive it” is usually insufficient. Where a car will not be used for a prolonged period, its legal status should be considered rather than simply allowing its policy to expire.
What does a Guarantee Fund notice mean?
The Fund’s Information Centre exchanges data with insurers and the competent authorities. If it identifies the absence of a policy, or a terminated policy that has not been renewed, the owner is notified and given a period in which to provide evidence of valid insurance.
The period under Article 574(10) of the Insurance Code is 14 days from the date the notice is sent. It should not automatically be counted from the day the letter is read. The notice is not itself a penalty decree, but ignoring it may result in further action.
What should you do after receiving a letter?
- Check the vehicle and the period. Compare the registration number, vehicle identification number and the start and end dates of cover.
- Check the policy and payments. Locate proof of all instalments due and information about any termination.
- Ask the insurer to investigate. If the data do not match, request written confirmation and correction of the information submitted.
- Respond with evidence. Submit the relevant documents in the manner indicated in the notice and retain proof of submission.
- Check the registration before driving. If administrative termination is suspected, clarify the vehicle’s status with the Traffic Police.
Taking out a new policy does not prove that cover existed during an earlier period. If the dispute concerns a past date, the policy in force at that particular time must be checked.
When is registration terminated administratively?
If evidence of insurance is not provided within the period, the Fund notifies the registration authority. Article 143(10) of the Road Traffic Act provides for administrative termination of registration upon receipt of that notification.
It is important to distinguish between having no insurance and driving a vehicle whose registration has been terminated. These can have different consequences. Do not assume that a car can be driven simply because its number plates remain attached.
How is registration restored?
The law provides for restoration automatically after the Guarantee Fund supplies information about insurance being taken out, or at the owner’s request upon presentation of valid compulsory motor liability insurance. Before driving, check that restoration has actually been recorded. If number plates or documents have already been seized during a police check, the applicable procedure for their return must also be completed.
Unpaid instalment: is a separate termination letter necessary?
A policy with an annual term does not guarantee uninterrupted cover where the premium is payable in instalments and an instalment has not been paid. Article 368(4) of the Insurance Code permits termination subject to the prescribed conditions and a period of no less than 15 days.
Where the policy expressly provides for automatic termination after a specified period from the payment due date that complies with the law, a separate additional written notice may not be required. The exact contractual wording, due date, payment and termination date should therefore be examined, rather than relying solely on not having received a letter.
What should be checked if an offence report or penalty has been issued?
Defence begins by identifying the document: a notice, an administrative offence report, a penalty decree, an electronic penalty notice or an administrative measure. The procedure and deadline for responding depend on the type of document.
Relevant factors include the date of the alleged offence, whether the person acted as owner or driver, the actual insurance cover, the time registration was terminated or restored, and the version of the law applicable to the case. A penalty cannot be promised to be overturned merely because the owner says they did not know about termination. Particular care is needed when relying on older case law because of subsequent legislative amendments.
Legal assistance with insurance and registration disputes
For a review of your case, prepare the policy, payment evidence, the notice and its envelope, correspondence and all Traffic Police documents. Tomovi Law Firm in Varna provides legal assistance in insurance disputes and challenges to administrative penalties.
Related reading
Current as of 18 October 2026. Legal basis: Articles 368(4), 483, 574 and 638 of the Insurance Code; Article 143(10–12) of the Road Traffic Act. Official legislative sources: Financial Supervision Commission – Insurance Code and Ministry of Interior – Road Traffic Act.