Polish license plates, car insurance tightens: Italian insurance becomes mandatory for foreign vehicles

A new crackdown is coming on foreign-registered cars regularly circulating on Italian roads. The government is addressing the phenomenon of "esterovestizione," a practice that allows Italians to use a vehicle formally registered abroad, avoiding some of the costs associated with taxes and insurance.

The measure, which specifically affects Polish license plates, requires that vehicles registered in the REVE, the Register of Foreign Vehicles managed by the ACI, must have insurance coverage guaranteed by an Italian company or by a company authorized to operate in Italy.

The new provision will come into force in the coming months and adds to the measures already adopted to tighten checks on vehicles registered outside of Italy.

The case of Campania

The phenomenon is particularly significant in Campania. According to estimates reported by Corriere della Sera, of the approximately 53 foreign license plates in Italy, 35 are concentrated in Naples and its province.

In recent years, Polish license plates have become an increasingly frequent presence on Campania's roads, along with those from other countries, such as Bulgaria and Germany.

Using foreign-registered vehicles can benefit from lower insurance and tax costs. However, the practice has also created operational difficulties for law enforcement and local authorities, especially when it comes to notifying administrative fines to owners or companies based abroad.

First the Reve, then the insurance obligation

The new measure follows the first regulatory intervention that came into force on May 25, which introduced the obligation to pay the IPT upon registration with the Reve.

Starting in 2022, vehicles registered abroad and used by Italian residents must be registered in the register managed by the ACI.

Now the government is adding another element: once registered with Reve, the insurance obligation cannot be satisfied with coverage that does not meet the requirements of the new Italian regime. It will be necessary to contact an Italian company or one authorized to operate on the national market.

Real-time checks on Polish license plates

On the enforcement front, an important role will be entrusted to the police.

A circular from the Ministry of the Interior dated August 13th made links to Polish government portals available to the police. This will allow operators to directly check data relating to vehicles registered in Poland.

The databases will allow checking, among other things, vehicle registration documents, insurance coverage, and driving licenses issued in Poland.

A system that aims to speed up checks at roadblocks and to identify any irregularities in vehicles with Polish license plates circulating on Italian roads.

How the Polish license plate system works

The mechanism used to circumvent the higher Italian costs generally involves re-registering the vehicle abroad.

The owner can rely on a motor vehicle registration agency to formally export the vehicle to Poland, where it is re-registered. Subsequently, a rental agreement is drawn up through a Polish company registered as the vehicle's owner, allowing the vehicle to continue to circulate in Italy.

The financial advantage can be significant. For scooters, for example, the indicated costs for the first year can be around €600-800, then dropping to around €300-350 in subsequent years.

It is precisely this system that the new initiative aims to impact, strengthening both insurance requirements and the tools available to law enforcement to verify vehicle compliance.