What does motor liability insurance pay?
In short
Every car in Switzerland needs liability insurance, otherwise there are no number plates.
It pays damage you cause to others with the car, to people and property. By law it must cover at least CHF 5 million per event, and many policies cover more.
Want to know more?
What does motor liability insurance pay?
- Personal injury, for example treatment and lost earnings of an injured person.
- Property damage to other vehicles, buildings or objects.
- Defence against unjustified claims.
The minimum cover is CHF 5 million per accident for personal injury and property damage together. For buses and dangerous goods transport higher sums apply.
What happens after an accident?
- Secure the scene and help the injured.
- Call the police if people are injured.
- Fill in the European accident report together and sign it, but do not admit fault that is not clear.
- Report the damage to your insurer as soon as possible.
What many people get wrong
- “Liability insurance also pays for my car.” Wrong. Casco is for that.
- “With alcohol the insurer does not pay at all.” It always pays the injured parties. It can, however, claim money back from you.
- “Whoever drives the car needs their own insurance.” No. The vehicle is insured, even if someone else drives. Do check, though, whether your policy excludes young drivers.
Frequently asked questions
What does motor liability insurance not pay?
Damage to your own car. For that you need partial or comprehensive casco.
What happens with drink driving?
The insurer still pays the injured parties. It can, however, take recourse against you, which means claiming part of the money back.
Is the minimum cover enough?
With serious personal injury the costs can be high. Many policies therefore cover clearly more than CHF 5 million, often without a big surcharge.
What comes next?
Your path · I am on the move Step 2 of 8
Your next step Partial or comprehensive casco, which one fits your car?Sources and date 2 October 2026
- Ordinance on Traffic Insurance, VVV, in German
- TCS: Liability, partial or comprehensive casco?, in German
This page explains in general terms and does not replace personal advice. Law and your policy are what counts.