Legal liability

Insurance allows policyholders to cover a certain risk. The most important feature of insurance is risk spreading. This means that the insured person chooses to pay a premium so that several people bear the risk and if something happens, the insurer will absorb the damage. Insurance is a valid option in many scenarios. There are a lot of people who would like to be insured against fire or theft, for example. The same applies to driving: a car is often expensive and it is too expensive to replace the car yourself in the event of a total loss. That's why we take out car insurance. Most people also insure themselves because they do not have the financial resources at their disposal to finance risks themselves.

When we talk about an insurance company or an insurer, we mean a company that covers risks for consumers or business users. This is a financial service that commits itself to paying out claims for a monthly premium. The insurer has money in cash because many people take out insurance, but not everyone has a claim. An insurance company must have a license from the Dutch Central Bank (DNB) and maintain licenses from the Netherlands Authority for the Financial Markets (AFM). License registers can be found on the DNB and AFM websites.

Saving money on insurance can be straightforward. Many people double insure or over-insure. That gives a safety net of coverage, but it is often a waste of money. If you want to save money, it is better to take another look at your insurance policies and find out which insurance is too expensive or unnecessary. Too expensive insurance can be replaced by cheaper insurance. In some cases, the policy conditions and coverage are virtually the same, so always compare for the best price. Alongside this, there is often overlap in different insurance policies. As a result, the insured person pays twice for the same risk. That is why it is wise to read the coverage carefully and make sure you are not paying too much.

Comparing insurance policies could save you money. Comparing is the best way to see which insurance policies are actually too expensive or unnecessary. In addition, it provides insight into insurance premiums. It is important to first look carefully at your own situation and take out the necessary insurance. You can compare several insurance policies online, such as car insurance, liability insurance and travel insurance.

Premium and policy costs are not the same thing. The policy costs are the costs for drawing up the policy. These costs are always in addition to the premium. Almost all consumers have insurance where the premium must be paid monthly. It may also be the case that policy costs have to be paid every month. Anyone who chooses to pay the entire premium per year will pay a one-off policy charge which the insurer often gives a discount for. The costs may differ between insurers, so always include the policy costs, in addition to the premium and coverage, in the comparison.

The most expensive insurance is not always the best option, but neither is the cheapest insurance. Anyone who wants to save would do well not only to look at the monthly premium. Look at what you really need and then determine whether or not the premium is too high. Make a selection from the insurance policies you come across that suit you the best. Once you have made an overview, start comparing the cheapest insurance policies, but please pay attention to the policy conditions. Sometimes a slightly more expensive insurance policy is the best (and cheaper in the long-term) option for your specific situation.

Underinsurance is the amount by which someone is insured below the actual value of the object. This is where less compensation will be paid than the value of the actual damage. With overinsurance, the insured amount is higher than the actual value of the object. This is not a good idea, because a higher amount than the actual damage is never paid out, as you will then pay a higher premium for the insured object.

Insurance websites often get asked the same question: 'What is the best insurance?' This is a difficult question to answer, because the best insurance is relative. It depends on your own wishes and preferences. For example, pay attention to what insurance you need specifically, what/how much should be covered, what the maximum premium is and whether you have a preference for a particular insurer (for example because the service is better reimbursed here). Choosing insurance is therefore a personal choice. Calculate the premium for different insurance policies and use online comparison tools.

In the Netherlands it is mandatory to have health insurance and to take out third party liability insurance if the driver is the owner of a car. There are also importance insurance policies to consider. For example, many people opt for liability insurance, home contents insurance or legal expenses insurance is. Funeral insurance is another common insurance policy. These types of insurance policies are a personal choice.

It is a good idea to identify which insurance policies are already in place. It is useful to know which coverage is included. This allows you to begin the comparison with all the relevant information to hand. Look at what you currently pay for insurance and try to find insurance with the same coverage, but at a (lower) price. Comparing is the best option to start saving. View insurance coverage and policy costs as these vary among insurers. An insurer may determine the monthly premium itself. Once you know what the best insurance is, you can look for an affordable insurer.

The cooling-off period starts immediately after taking out insurance. The law stipulates that the consumer has at least 14 days where they can change their mind. This applies to products and insurance. The period starts after the first policy has been received (usually by post or email), but this varies per insurance company. You can often indicate how you want to receive the policy. Still not satisfied with your choice? Then the insurance can be cancelled within the 14 day period and can be done without giving any reason and completely free of charge. Cancellation is done by contacting the insurer and indicating that you are invoking your cooling-off period.