Italy targets foreign-plated vehicle abuse with new insurance rules

The Italian government is preparing a crackdown on “esterovestizione,” the practice of registering vehicles abroad—most commonly in Poland—to evade domestic taxes, fines, and high insurance costs. This phenomenon is particularly prevalent in southern regions like Campania and Naples, affecting tens of thousands of vehicles.

Proposed reforms to the Highway Code (Codice della Strada) would require vehicles registered in the Foreign Vehicle Register (REVE) to hold mandatory third-party liability (RC Auto) insurance through an Italian company or a foreign insurer authorized to operate in Italy. This measure aims to ensure traceability and adequate coverage for accident victims, addressing concerns that some foreign policies are non-existent or provide insufficient protection.

Additionally, the reform includes a proposal to mandate a digital domicile, such as a certified email (PEC) registered with the National Index of Digital Domiciles (INAD), for various automotive administrative tasks including new registrations, ownership transfers, and periodic inspections. Industry associations have until September 13 to submit observations on these draft texts, with a final version expected by mid-October.