During the parliamentary examination of the Economic Maneuver, the proposed amendment signed by Matteo Gelmetti (Brothers of Italy) introduces a novelty which concerns one of the most widespread ancillary components in car liability insurance policies: coverage for driver accidents. The amendment provides for a significant increase in the tax foreseen on this item, with potentially significant consequences for motorists.
The rate would in fact go from 2.5% to 12.5%, with an increase of ten percentage points. The intervention is designed to come into force from January 2026 and to be implemented in the new Consolidated Law on minor state taxes. This is a measure intended to increase tax revenue by approximately 100 million euros per year, a figure estimated by the Government based on the diffusion of accident coverage within car liability insurance policies.
The effect on policies and the role of insurance companies
The rule provides that the tax is physically paid by the companies, but the sum is due by the customers, which is why it is highly likely that the increase will be passed directly on to motorists. In fact, insurance companies act as tax substitutes and, in the absence of a different regulatory framework, tend to overturn on the premium what has been introduced by the legislator.
The increase concerns an additional car insurance coverage that many drivers take out to protect themselves from possible personal damage. The move to 12.5% will presumably lead to an increase in the final costs of policies that include this guarantee, with a potential impact on the number of subscriptions.
The error in the application of the rate
In addition to the adjustment of the rate, the amendment implements a recent interpretation of the Revenue Agency which has clarified the correct application of the tax since the 1980s. The tax administration believes that the companies should have applied a higher rate than that adopted in recent decades. For this reason, payment of arrears relating to the last ten years is now being requested, the period within which the taxes are still due.
According to estimates, the sum that the companies could be asked to pay is around one billion euros. An amount that excludes penalties and interest, since the regulatory intervention allows insurance companies to remedy the situation without additional penalties. Any failure to comply, however, would entail the risk of a much higher bill, with a possible increase of up to 400% in the event of defeat in the disputes.
As reported by Il Sole 24 Oreit all starts from a request that the companies had forwarded to the ministry in 1983 to clarify the rate to be applied. Over the years, the sector has interpreted the ministerial response by opting for the lowest percentage, initially equal to 2% and subsequently increased to 2.5%.
The position of the Lombardy Revenue Agency has reopened the issue, highlighting a discrepancy between the interpretation followed by the market and that deemed correct by the Tax Authorities. Hence the request for recovery of the tax not paid in full. The technicians believe that the rule must be applied uniformly, also due to the objective of harmonizing sector taxes.
The legal strategies of companies
Insurance companies are preparing for a complex legal battle. Various legal opinions were collected to support the position according to which the rate adopted so far was in compliance with the ministerial indications of the time.
Now they could accept the Revenue Agency’s approach and pay the amount requested or start a dispute. For citizens, the most significant immediate effect concerns the increase in the rate on accident policies.
In the absence of corrective interventions, the increased cost will likely be transferred to the insurance premium. The measure could push some motorists to give up additional coverage, even though it is a guarantee that protects the person driving in the event of an accident.
