Insuring a car: what you need to know
Insuring a car is not only a legal requirement in the Netherlands, but it also offers important financial protection against the costs of damage and accidents. As a car owner, you are required to have at least a Third Party Liability Insurance (WA insurance) to take out, but depending on your situation, it may be smart to choose more extensive coverage. In this article, we discuss the different types of car insurance, what to look for when taking out insurance, and how to find the best deal.
Different Types of Car Insurance
In the Netherlands you can choose from three main types of car insurance:
- Third Party Liability (WA insurance): This is the minimum insurance that is required by law. Third-party liability insurance covers the damage you cause to others with your car, such as damage to vehicles, property or bodily injury. However, damage to your own vehicle is not covered.
For who?
This insurance is particularly suitable for older cars with a low current value, where the costs of comprehensive cover do not outweigh the value of the car. - WA + Limited Casco (WA Plus): In addition to the coverage for legal liability, a WA+ Limited Casco insurance also offers coverage for damage to your own car due to, for example, theft, fire, storm or window damage. Damage due to collisions that you cause yourself is not covered.
For who?
This type of insurance is suitable for cars that are between five and ten years old. The value of the car is still high enough to make additional coverage worthwhile, but the car is not new enough to insure fully comprehensive. - All-risk (Full Casco): The comprehensive insurance offers the most extensive coverage. In addition to the coverage of WA and Limited Casco, this insurance also reimburses damage to your own vehicle, even if it is your fault.
For who?
This insurance is especially suitable for new cars (less than five years old) or for cars with a high value. With this coverage you are optimally insured against almost all types of damage.
How to Choose the Right Car Insurance?
When choosing the right car insurance, there are several factors to consider:
- Age of the car: For new and more expensive cars, a fully comprehensive insurance is often the best choice, because repair costs can be high. For older cars, a WA or WA+ Limited Casco insurance may be sufficient.
- Your driving behavior: If you drive a lot of kilometers, a more extensive coverage such as all-risk can be attractive. If you use the car less or if you run little risk, a third-party insurance is often sufficient.
- Financial situation: Determine if you can afford to pay for damage to your own vehicle yourself. If not, then more comprehensive insurance may be a good idea.
- Bonus-malus system: In the Netherlands, most insurers work with a bonus-malus ladder. The longer you drive without damage, the more discount you get on your premium. Pay attention to how many claim-free years you have, because this can have a big influence on the height of your premium.
It is also always good to have your car insurance to compare before you actually take out insurance.