Vehicles with foreign license plates circulating in Italy may be required to purchase insurance from an Italian company or a company authorized to operate in the country. This rule is included in the draft of the new traffic code, which industry associations are still working on and are expected to comment on by September 13th, according to the newspaper Il Sole 24 Ore.
The target is the so-called "Polish plate" phenomenon, technically defined as foreign investmentThe practice involves keeping the vehicle registered abroad to reduce the cost of mandatory insurance and also to avoid penalties for traffic violations. The phenomenon is widespread, especially in Campania, a region where liability insurance is expensive due to the high number of accidents.
The circulation of foreign vehicles in Italy was first regulated by the 2018 Security Decree, which prohibited, with exceptions, the use of cars registered abroad by residents of the country. Later, Article 93-bis of the traffic code banned their use by those residing in Italy for more than three months and created a registration requirement for vehicles belonging to foreign residents that circulate in the country for more than 30 days a year, even if not consecutive.
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Read the original article in Italian in the newspaper. Il Sole 24 Ore .
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