Car insurance – types and its cost
If you have a car or motorcycle, legal liability insurance is mandatory. This insurance reimburses damage that you inflict on your car or motorcycle to others.
You can also opt for the more extensive limited hull or full hull car insurance. You will also be reimbursed for the damage to your own car.
What does a car insurance cost?
The amount of the premium that you pay per month depends primarily on your number of claim-free years. The more years you did not cause damage, the less you pay. You do not use the insurance. That is why you get a discount on the premium.
The amount of the premium you pay is also dependent on:
- The region where you live
- The number of kilometers you drive
- The weight of your car
- Your age
- Your possible excess
80 % is the maximum no-claim discount for many claim-free years
Compare multiple insurance policies before you take out a car insurance policy.
There are significant differences in costs. Pay attention to this:
- What you insure;
- Whether you have a deductible;
- How the discount scheme is for the number of claim-free years. See also: vanatotzekerheid.nl/Schadevrije jaren (pdf);
- The extra premium you pay if you have damage. This differs per insurer. These extra monthly costs are sometimes higher than the costs of the damage on an annual basis.
Tip: claiming window damage does not affect the no-claim discount and the number of claim-free years.
Tip: If the costs in case of damage are not too high, it may be cheaper to pay the damage yourself. You will then retain your claim-free years and will therefore continue to pay a lower premium each month. The decline in the premium discount can continue for years and lead to a much greater loss.
Types of car insurance
In addition to the mandatory liability insurance for your car, you can opt for a limited hull or full hull insurance. The latter is also called an all-risk insurance. With these insurances you not only cover the damage to others, but also your own damage.
For a new car an all-risk insurance is sensible, for a slightly older car a hull insurance policy. With old cars, you can suffice with third-party liability insurance.
With a limited hull insurance you are insured against the costs of damage to your own car caused by theft, fire, lightning or storm. The liability insurance does not cover this.
With a full hull insurance you will be reimbursed for all damage to your own car. Even if you caused the damage yourself.
Which car insurance is suitable for me?
Do you want to take out one of these insurance policies? Then think carefully first if you could pay any costs yourself. Does someone throw the window to steal your car radio, can you pay for a new window or not?
If you are considering taking out a full hull (all risk) insurance, pay attention to the age of your car. If the car is total loss, you will receive the daily value. In the first few years the daily value decreases considerably. After a number of years the higher premium for the all-risk insurance often no longer outweighs the compensation.