Guarantee fund - what it is and in what cases it is used

Road traffic accidents happen every day in Bulgaria, and even a minor collision usually results in some form of material damage. This is why every vehicle owner in the country is legally required to hold Third Party Liability insurance and renew it annually.

Problems arise when the driver at fault has no valid policy in place. In these situations, the Guarantee Fund exists to make sure that victims of an accident are not left to cover the cost themselves.

What the Guarantee Fund Does and How It Relates to TPL Insurance

Third Party Liability insurance is designed to protect other road users, since it covers the cost of damage that a driver causes to someone else during an accident. The Guarantee Fund is a separate Bulgarian institution that steps in whenever this compulsory cover is missing.

This matters directly for anyone renting a car, since Bulgarian law makes TPL cover compulsory for every vehicle on the road, including rental fleets. For more detail on how this compulsory Third Party Liability insurance for drivers in Bulgaria works, our dedicated guide covers the requirements in full.

Both systems work together under the Bulgarian Insurance Code to keep the cost of accidents from falling on innocent drivers.

When the Guarantee Fund Pays Compensation

The fund becomes involved in a limited number of situations set out in the Insurance Code. The clearest example is when the driver who caused the accident either never took out TPL cover or let an existing policy lapse.

A second scenario covers accidents caused by a vehicle that cannot be identified, for example after a hit-and-run. The Guarantee Fund also guarantees compensation when a licensed insurer becomes insolvent and can no longer pay valid claims.

These rules mean that anyone injured or left with damage to their vehicle can pursue compensation, even if the person responsible turns out to be uninsured, unidentified, or covered by an insurer that no longer trades.

Other Responsibilities of the Fund

Beyond paying compensation, the Guarantee Fund also runs an Information Centre that keeps electronic registers of every active TPL policy, Green Card certificate, and border insurance contract issued in Bulgaria.

This Centre supports accident victims by supplying details about the insurer and the policy of the driver at fault, which is especially useful when this information is missing from the official accident report.

The fund also operates the electronic system used to issue TPL and passenger accident policies nationwide, and this same infrastructure supports the online insurance checks available to drivers and renters alike.

Cross border cover works the same way, since a Green Card is issued automatically with every TPL policy in Bulgaria.

Why This Matters When You Rent a Car in Bulgaria

For visitors picking up our full range of rental cars, none of this needs to be arranged separately. Every vehicle already carries the compulsory Third Party Liability cover required by Bulgarian law before it leaves the office.

At SpeedyCars, every car rental in Sofia already includes this cover as standard, so drivers do not need to buy anything extra just to meet the legal minimum before setting off.

If a rental car is ever involved in a collision with an uninsured or unidentified vehicle, the same Guarantee Fund protections described above apply, which gives extra peace of mind on unfamiliar roads.

Anyone unfamiliar with local requirements can also review the documents needed to rent a car in Bulgaria and the road rules for foreign drivers in Bulgaria before collecting a vehicle, whether pickup happens in the city or straight from car rental at Sofia Airport.

How to Check That a Vehicle Has Valid TPL Insurance

No one is immune to accidents, but confirming that a policy is active takes only a moment. You can check the status of any vehicle by entering one of the following details on the Guarantee Fund website:

• Vehicle registration number;
• Chassis, or VIN, number;
• Insurance sticker number.

This is particularly useful for anyone comparing rental options, since it works alongside the general safety information covered in our guide to 24-hour roadside assistance, which explains what to do if a breakdown happens instead of a collision.

The same habit of checking official records online applies to checking traffic fines online and checking your vignette status, both of which take only a few minutes before or during a trip.

For more on insurance cover, deposits, and other rental terms, our frequently asked questions about renting a car page covers the details in full.