If you have TVDE vehicles in operation and are still using personal car insurance, you are operating at enormous risk. In the event of a claim during a TVDE trip, the insurer may refuse coverage — and the liability falls entirely on you.
This guide explains what the law requires, what types of policy are available in Portugal, how much they cost, and what to check before signing any insurance contract for your fleet.
What the law says: Law No. 45/2018
Law No. 45/2018, which regulates the activity of individual paid passenger transport in unmarked vehicles (TVDE), is clear: the responsibility for insurance lies with the operator, not the partner driver.
The mandatory coverages are:
- Third-party liability for passengers — covers bodily and material damage caused to third parties during the provision of TVDE service
- Personal accident for occupants — covers the driver and passengers in the event of an accident during the trip
Personal or mixed-use car insurance does not meet these requirements. Even if the vehicle is covered for normal road use, commercial TVDE activity requires a specific policy.
Types of policy available in Portugal
The Portuguese insurance market has evolved in recent years to address the reality of the TVDE sector. These are the main options available:
Individual commercial TVDE insurance
The most common solution for operators with one or two vehicles. Covers a single vehicle with declared TVDE activity. The cost typically ranges between €1,500 and €3,000 per vehicle per year, depending on the driver profile, vehicle and expected mileage.
Fleet insurance (3+ vehicles)
From three vehicles onwards, operators can negotiate a fleet policy. The advantages are significant: centralised management under a single policy, unified billing and discounts ranging between 20% and 35% compared to individual policy costs. This is the recommended solution for those scaling the business.
Pay-per-use / telematics
Insurance models based on kilometres driven or driving data collected by telematics devices. Still uncommon in Portugal, but some European insurers are introducing these products. They may be advantageous for vehicles with low usage.
Insurers with TVDE products in Portugal
Insurers with specific coverage for TVDE activity include: Fidelidade, Generali, Tranquilidade and Ageas. We recommend requesting quotes from at least two or three insurers before deciding — prices vary considerably for the same profile.
What to check in the policy before signing
Not all "TVDE" policies are equal. There are critical points you should analyse carefully:
- Does it cover the partner driver (not just the policyholder)? If you have drivers operating your vehicles, the policy must explicitly cover them — or you'll need to add them as regular drivers.
- 24h coverage or only during active trips? Some TVDE policies only apply when the app is active. Understand exactly when coverage starts and ends.
- Third-party liability limit — the legal minimum may be insufficient for serious claims. Consider whether it makes sense to increase the coverage limit.
- Excess in the event of a claim — confirm the excess amount and whether a zero-excess option exists (generally with a higher premium).
- Up-to-date insurance certificate — always request a physical or digital certificate from your insurer. The IMT may require it at any inspection.
Fleet vs. individual policies: cost-benefit comparison
| Criterion | Individual policies | Fleet insurance |
|---|---|---|
| Minimum number of vehicles | 1 | 3+ |
| Average cost per vehicle/year | €1,500 – €3,000 | €1,000 – €2,100 |
| Administrative management | One policy per vehicle | One policy for the entire fleet |
| Adding new vehicles | New policy | Simple endorsement |
| Driver substitution | Per-vehicle notification | Centralised management |
| Volume discount | Not applicable | 20% – 35% |
For an operator with 3 vehicles, the saving with fleet insurance can represent between €900 and €2,700 per year compared to three individual policies — not counting the significant reduction in administrative management time.
Insurance as a deductible expense
The insurance premium for TVDE vehicles is a business expense, tax-deductible — both under IRC (for companies) and IRS (for sole traders, whether on the simplified scheme or organised accounting).
To ensure deductibility:
- The invoice must be issued in the company's name, with the corresponding NIF
- Always keep the original invoice and the corresponding insurance certificate
- In organised accounting, insurance must be recorded in the correct category (accident and damage insurance)
Frequently asked questions about TVDE insurance
Can the driver take out the insurance instead of the operator?
No. Law No. 45/2018 is explicit: the obligation to provide insurance coverage lies with the licensed operator, not the partner driver. The operator can pass the cost on in the agreement with the driver, but the legal responsibility is always theirs.
Does the insurance cover accidents when the driver is waiting for a trip (without a passenger)?
It depends on the policy. Some TVDE coverages apply only when the app is active and the vehicle is on a trip. Others also cover the waiting period with the app on. Check this distinction in your policy — it is a critical point.
What happens if there is a claim without valid TVDE insurance?
The personal insurance provider may refuse coverage due to undeclared commercial use. In that case, the operator becomes personally liable for all damages — bodily and material — with no defined limit. The financial risk is potentially unlimited.
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