Did you know that car insurance costs can sometimes differ by hundreds of euros depending on the year? Car insurance in the Netherlands can be rather tricky to navigate. There are various factors that affect what you pay. These will include the age of the insured, the type of car driven, and the region of residence.
These average costs of insuring your car will be dealt with in this article. We will start tracing the factors that really impact your premium. Besides, we will provide a list of some tips on how you can save for your own situation. Without wasting much time, let’s jump in and get you covered!
The Basic Understanding of Car Insurance in the Netherlands
Understanding the three types of insurance coverage for cars is ultra-important; you want to be sure to have the right coverage. There are WA, WA+, and All Risk insurance types usually found in the Netherlands. Let us discuss each in detail so that we might help you to decide which is the one for you.
WA (Liability) Insurance
WA insurance is the basic kind of car insurance in the Netherlands. It’s also the only type of car insurance required by law. WA is an acronym for Wettelijke Aansprakelijkheid, which means legal liability. Although this coverage pays for damages you cause to others, it does not cover damages to your own car.
That is to say, if you accidentally bumped into another car, your WA insurance would only pay the repair cost of the other car. It will not fix your own car. WA insurance is generally the cheapest available option, and for good reason: it’s best left to older vehicles of lower value.
WA+ (Limited Casco) Insurance
WA+ offers slightly enhanced coverage beyond primary WA coverage. Coverage in WA+ will add some extra occurrences beyond what WA covers. In other words, WA+ is a leg up from your WA basic coverage. The term Limited Casco is also applied to WA+.
WA+ covers you against theft, fire, and damage from storms. As an example, if a massive storm causes a tree to fall and strike your parked car, WA+ should cover the repairs. So WA+ offers suitable protection at a reasonable price; this makes it a sweet spot for many car owners.
All Risk (Volledig Casco) Insurance
All Risk insurance provides full protection with the highest coverage you could ever imagine. This is alternatively known as Volledig Casco. It covers nearly all types of incidents, including damage to your own car. This also includes accidents you cause.
Imagine that you keyed your husband’s new car while parking. All Risk insurance would most likely cover the repairs for this particular instance. Its major selling point is that it is mostly recommended for newer cars. The premium is high, but there is definitely peace of mind.
Most All Risk policies come with a deductible, which is the amount you would pay on a claim before your insurance would pay anything. A higher deductible will lower the cost of your premium; however, you’ll need to consider that this would also be a larger amount that you’d have to pay.
Factors Influence in Car Insurance Premiums
Many things influence how much you pay for car insurance. Insurance companies look at different risk factors. Let’s explore some of the major ones.
The Young Age And Driving Experience
Younger drivers often face higher insurance premiums. Insurance companies consider them higher risk. Having minimal driving experience increases the chances of accidents. Rates usually go down as you get older and experience more driving.
For example, a 19-year-old driver would pay many times more than a 40-year-old driver. Some data say young drivers can pay more than double or even triple the amount that older drivers pay. Keeping a clean driving record is key to getting lower rates over time.
The Type and Value of Cars
The type of car you drive plays a much bigger role in how much you pay for your insurance. Insurance tends to be priced high for more expensive cars. The reason is that repairs are quite costly, apart from a car being more likely to be stolen.
A small, old vehicle will generally cost less to insure compared to a new luxury vehicle. Insuring a Fiat 500 would likely cost you a lot cheaper compared to a similar insurance plan for BMW. So perhaps now consider insurance costs when picking your next car.
Residential Area
It follows that your location affects your premiums, judging by how it is said to be. Generally, big cities will have higher premiums than rural areas. This has to do with the traffic density and the crime rate as regards accidents and thefts. The fact that you live in a place where lots of car thefts occur, you are much likely to pay higher car insurance premiums.
Living in Amsterdam means paying a much higher premium than living in a very small village. Insurance companies are more interested in the risks that come with your locality.
No-Claim Discount (No-Claim Korting)
A no-claim discount, or no-claim korting, is a great aid in saving money. It’s earned by each claim-free driving year. This discount can be compounded significantly by years. It makes your insurance costs significantly lower.
Making a claim usually reduces your no-claim discount. It might even increase your premium. So, drive safely and avoid accidents to maximize such discounts. Long-term benefits accrue to building a good driving record.
Conclusion
Understanding the average car insurance cost in the Netherlands is crucial. The influence factors that determine your premium are to be known by you. The comparing of quotes, as well as exploring alternatives, leads to great savings.
