Poland targets vehicle insurance fraud scheme involving Italian drivers

insurance fraud Polish Bureau of Motor Vehicle Insurers vehicle registration car insurance costs cross-border fraud

The Polish Bureau of Motor Vehicle Insurers (PBUK) and the Polish Ministry of Infrastructure are taking legal and regulatory action to combat a fraudulent scheme known as the ‘Italian practice’. This scheme involves Italian motorists, particularly in the Naples region, registering their vehicles in Poland to avoid high domestic insurance premiums.

Under this mechanism, vehicle owners formally transfer ownership to Polish leasing companies, re-register the cars in Poland, and then regain use through long-term rental contracts. This allows drivers to bypass Italian insurance costs and inspection requirements. However, many of these vehicles operate without valid insurance or proper inspections, leaving the financial burden of accidents on guarantee systems and the PBUK.

PBUK has reported a significant increase in uninsured accidents involving Polish-registered vehicles abroad, noting 3,188 such incidents in 2025 compared to 1,574 in 2024. In response, Poland has initiated approximately 500 legal actions seeking 80 million euros in compensation. Proposed legislative changes may also allow for the automatic removal of non-compliant vehicles from the Polish automotive register.