Car Insurance in the Netherlands: A Complete Guide

When moving to or living in the Netherlands, owning a car comes with many responsibilities—one of the most crucial being car insurance. Understanding how car insurance works in the Netherlands is essential for both Dutch residents and expatriates. This article provides a comprehensive overview of the types of car insurance, costs, legal requirements, how to choose the right provider, and tips to save money on premiums.

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1. Is Car Insurance Mandatory in the Netherlands?

Yes. According to Dutch law, car insurance is mandatory for all motor vehicles operating on public roads. At a minimum, every car must be insured with WA coverage (Wettelijke Aansprakelijkheid), which is third-party liability insurance. This ensures that if you cause damage to another vehicle or injure someone while driving, your insurance will cover the costs.

Driving without valid insurance is illegal and can result in heavy fines, penalties, and even confiscation of your vehicle.

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2. Types of Car Insurance in the Netherlands

There are three main types of car insurance available:

a. WA (Third-Party Liability Insurance)

This is the minimum legal requirement. It covers damage you cause to other people, vehicles, or property. However, it does not cover any damage to your own car.

Best for: Older cars (10 years or more) with lower value.

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b. WA+ (Third-Party, Fire & Theft Insurance)

Also known as “WA Beperkt Casco,” this includes third-party liability coverage plus limited coverage for your own vehicle in cases like:

• Fire

• Theft

• Vandalism

• Storm or hail damage

• Broken windows or glass

Best for: Cars between 6–10 years old.

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c. Allrisk (Full Coverage)

Known in Dutch as “Volledig Casco,” this is the most comprehensive form of car insurance. It includes all of the above, plus damage to your own vehicle even if the accident is your fault.

Best for: Newer cars (up to 5 years old) or high-value vehicles.

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3. Additional Insurance Options (Optional Coverages)

Insurance providers in the Netherlands offer various optional add-ons, such as:

• Roadside assistance (Pechhulp): Useful if your car breaks down.

• Legal assistance (Rechtsbijstand): Covers legal costs if you're in a dispute.

• No-claim protection: Helps maintain your bonus/malus discount even after a claim.

• Replacement vehicle coverage: Provides a temporary car if yours is under repair.

• Personal accident insurance: Covers injuries or death caused by a car accident.

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4. Cost of Car Insurance in the Netherlands

The cost of car insurance in the Netherlands depends on several factors:

• Age and driving experience: Younger drivers usually pay more.

• Type and age of the car: New and expensive cars cost more to insure.

• Annual mileage: More kilometers = higher premium.

• Location: Urban areas tend to have higher premiums due to more traffic and theft risks.

• No-claim discount: The longer you go without filing a claim, the higher your discount.

• Coverage type: Allrisk is the most expensive; WA is the cheapest.

Average cost:

• WA: €25 – €60 per month

• WA+: €40 – €80 per month

• Allrisk: €60 – €150 per month

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5. No-Claim Bonus (Bonus-Malus System)

The Netherlands uses a bonus-malus system to reward claim-free driving. For every year you don’t make a claim, you earn a no-claim bonus which reduces your premium. However, if you do make a claim, you may move several steps down on the scale and your premium can increase significantly.

Insurers have different scales, so compare carefully before switching providers.

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6. How to Choose the Right Insurance Provider

There are many insurers in the Dutch market, including:

• ANWB

• Centraal Beheer

• Allianz Direct

• Univé

• FBTO

• InShared

When comparing insurers, consider:

• Monthly premium

• Level of coverage

• Customer service reputation

• Online management tools

• Claim handling process

• Discounts for multiple policies (home + car, for example)

Online comparison tools like Independer, Pricewise, and Vergelijk.nl can help you compare prices and coverage options.

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7. How to Apply for Car Insurance

Getting car insurance in the Netherlands is relatively easy:

1. Gather documents:

   • Dutch driving license or valid foreign license

   • Vehicle registration (Kentekenbewijs)

   • Personal identification (passport or ID card)

   • Address in the Netherlands

2. Apply online or by phone: Most insurers have English-language options and allow full online sign-up.

3. Get insured immediately: In most cases, your car will be insured from the moment you finalize the application.

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8. Can Expats Drive with Foreign Car Insurance?

If you bring your foreign car to the Netherlands, you can drive it with your foreign insurance for a limited time (usually up to 6 months). After this period, you must:

• Register the car with the Dutch authorities (RDW)

• Pay BPM tax (registration tax)

• Obtain Dutch car insurance

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9. What Happens in Case of an Accident?

If you're involved in an accident:

1. Stop and make sure everyone is safe.

2. Call emergency services (112) if needed.

3. Fill in the European accident report form (Schadeformulier), which all insurers provide.

4. Take photos of the scene, damage, license plates.

5. Exchange details with the other party (name, address, insurance info).

6. Notify your insurer within 48 hours.

If the accident is not your fault, your insurer may help you recover costs from the other driver’s insurance.

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10. Tips to Save on Car Insurance in the Netherlands

• Increase your deductible (Eigen risico): A higher deductible = lower premium.

• Drive less: Low mileage = cheaper policies.

• Build no-claim years: Avoid small claims and enjoy future discounts.

• Bundle policies: Insure your car and home with the same provider.

• Compare annually: Don't stay loyal if you can find better deals.

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Conclusion

Car insurance in the Netherlands is well-structured, but it's important to understand your rights, responsibilities, and options. Whether you're a new driver, an expat with a foreign license, or a long-term resident, choosing the right type of insurance can save you money and give you peace of mind. Make sure to compare, customize, and ask questions before signing up—because the best insurance is one that fits both your car and your life.