IT
Don’t miss the deadline: Key insurance cut-off dates to watch before the end of the year in Hungary
The Association of Independent Insurance Brokers of Hungary (FBAMSZ) has issued a warning about crucial year-end insurance deadlines, stressing that 31 December is a key date both for certain compulsory motor insurance policies and for pension insurance schemes.
Motor insurance: 31 December is a hard deadline for thousands
According to market estimates, more than 65,000 vehicle owners cancelled their compulsory motor third-party liability insurance (known in Hungary as kgfb) by 1 December, as their policies expire at the end of the year. These motorists must take out a new insurance contract by midnight on 31 December.
Although most affected drivers arranged their new insurance at the same time as cancelling their old policy in November, experience from previous years shows that several thousand people leave this step until December, FBAMSZ said in a statement sent to MTI.
Driving uninsured can have severe consequences
Anyone who fails to conclude a new contract in time will be without insurance cover from 1 January. This represents a serious risk: if an uninsured driver causes damage, they must personally pay compensation, which in cases involving personal injury can amount to tens of millions of forints.
In addition, under Hungarian regulations, motorists will be required to pay a penalty fee for the uninsured period, which can be several times higher than the normal insurance premium.
What to do if confirmation hasn’t arrived
Lajos Papp, head of FBAMSZ’s motor insurance section, emphasised that motorists should check the status of their policy if they arranged a new contract in time but have not received confirmation from either the insurer or the insurance broker.
The first instalment of the new insurance premium is due on 1 January. However, drivers who have switched insurers have until 1 March 2026 to pay this amount. Those who remain with their existing insurer must follow the standard procedure and settle their premium by the end of January at the latest.
Pension insurance: tax benefits depend on year-end payments
FBAMSZ also noted that in recent weeks, several thousand people may have taken out new pension insurance contracts in order to benefit from the maximum annual tax allowance of HUF 130,000 available for the current year.
However, the tax credit can only be claimed if the amount forming the basis of the allowance arrives in the insurer’s account by 31 December.
How the pension insurance tax credit works
The tax refund linked to pension insurance contributions amounts to 20 per cent of the annual payments, capped at HUF 130,000 per year. To reach this maximum, total annual contributions of HUF 650,000 would be required.
In practice, average payments fall well below this level. At the end of last year, the average annual contribution was around HUF 350,000, which translated into a tax refund of approximately HUF 70,000 – just over half of the possible maximum.
One-off payments still possible before year-end
FBAMSZ highlighted that, in addition to regular monthly contributions, policyholders still have the option to make one-off payments before the end of the year. This can increase the amount eligible for tax relief for the current year.
A growing segment of the insurance market
According to the association, pension insurance remains one of the strongest-performing products on the Hungarian insurance market. Based on data from the Hungarian National Bank (MNB), by the end of the third quarter of 2025, there were already more than 527,000 active regular-premium pension insurance contracts registered that qualify for tax benefits.