Italian drivers are increasingly turning to a cross-border scheme to bypass the country’s skyrocketing auto insurance rates by registering their vehicles in Poland. While mandatory liability coverage in Italy averages around €600 ($650) annually - and frequently tops €1,100 ($1,200) in high-risk metro areas like Naples - the average policy in Poland costs just €130 ($140).
To cut insurance and tax expenses by up to 70%, thousands of motorists transfer ownership of their vehicles to shell companies based in cities like Warsaw or Krakow, leased back for everyday use in Italy. Estimates from the Polish Motor Insurers' Bureau (PBUK) indicate that over 60,000 Polish-registered vehicles now regularly operate on Italian roads.
However, this administrative trick is fueling a growing financial strain. Accidents in Italy caused by Polish-registered vehicles - many lacking valid coverage - rose from 8,000 in 2024 to more than 11,000 in 2025. In the first eight months of 2026 alone, payout claims against Poland's guarantee fund reached 35 million zloty (approximately $8.9 million).
Italian authorities are tightening oversight through the Foreign Vehicle Register (REVE) and considering requiring local insurance policies for residents. Meanwhile, Polish officials plan to mandate physical photo inspections for registrations to crack down on phantom foreign vehicles.