Switching to a different car insurance policy

By switching to a different car insurance policy, policyholders can save a considerable amount, while the new policy may also be a better fit for their changed situation. Of course, there are a number of things policyholders need to watch out for, and there is also a lot they need to know. This page describes the situation in the Netherlands. You will find the most important information below.

Cancelling your car insurance

When you can cancel your car insurance differs from insurer to insurer. In the past, almost all insurers had the rule that there was first a fixed period of one year, after which the car insurance could always be cancelled with a notice period of one month. Due to increased competition, however, more and more insurers are offering more flexible cancellation options. With these insurers, it is always possible to cancel your car insurance. Check the policy conditions to find out the exact cancellation terms.

Cancelling car insurance after an en bloc change

Remember that it is sometimes possible to cancel your car insurance in any case, in particular when the insurer changes the policy conditions or the car insurance premium to the disadvantage of the insured person. This is also known as an en bloc change (en-blocwijziging). The insurer must announce such changes in good time and give the insured person the chance to reject them and cancel the insurance contract. The following guidelines apply:

• In the event of an en bloc change, the insured person may always cancel within 30 days of the change
• If the car insurer does not communicate the change, or cannot prove that it has communicated it, cancellation after the change is still permitted
• This free cancellation rule does not apply to changes resulting from a claim or a change in personal circumstances

It is also always permitted to end the insurance contract when the insured object is lost, for example because the car is scrapped or sold.

Price differences between car insurance policies

There can be various reasons why someone wants to switch to a different car insurance policy. A lower premium is often mentioned, which is of course a very good reason to switch. Always take the policy conditions into account, though, because a lower premium is not always better. When people switch other insurance policies, it is often best for the car insurance to follow, so that they can qualify for all kinds of package discounts. It is important to know that such package discounts are not necessarily cheaper in themselves. So always compare very carefully and do not be tempted by promised discounts.

Costs of cancelling your car insurance

It is advisable to always be able to prove your cancellation, which is why sending it by registered post is still recommended. In addition, insurers sometimes charge administration fees. These costs are often not stated in the policy conditions and can be as much as €25. Finally, bear in mind that the premium owed must always be paid first. If a premium has already been paid in advance, the insurer must refund the part that is not owed (including insurance premium tax, assurantiebelasting). The insurer may deduct any administration fees from this. This also applies when the policyholder dies: the heirs are then entitled to part of the car insurance premium that has already been paid.

Watch out for compulsory insurance

In the Netherlands, insurance is only compulsory for third-party liability insurance (WA), not for casco cover. Anyone who does not have third-party liability insurance (WA) not only runs a great risk of claims for damages that they have to pay themselves, but can also be fined. That is why it is advisable to first arrange everything with the new insurer and have it properly approved before cancelling the old car insurance.

Notice period when cancelling your car insurance

When you decide to cancel your car insurance, it is important to take the notice period into account. A notice period is the period between the moment you indicate that you want to end the insurance and the moment the insurance actually ends. The purpose of the notice period is to give the insurer enough time to deal with the administration and to prevent the insurer from unexpectedly being left without premium income.

The law states that you may cancel your car insurance after one year with a notice period of one month. However, many insurers allow you to cancel sooner. There are no legal rules on this, so it is important to check the policy conditions. The policy conditions state whether early cancellation is possible and what the notice period is in that case. There are even insurers where you can cancel on any day without a notice period. But there are also insurers where you cannot cancel sooner.

Switching car insurance and no-claims years

No-claims years are not lost when you switch. The insured person does not have to do anything for this either, because the old insurer is obliged to record the number of no-claims years in a database, and this database is then used by the new insurer. Policyholders therefore do not need to worry about losing their no-claims discount. With no-claims protection (no-claimbeschermer), things are different. Anyone who has an accident and has no-claims protection does not have to pay a higher premium to their insurer after the accident. The accident does affect the number of no-claims years, but not the premium payable. However, that is an agreement between the current insurer and the insured person, and a new car insurer does not have to take it into account. As a result, car insurance with the new car insurer can still be considerably more expensive. No-claims protection can certainly be worthwhile, but it does make it harder to switch freely to another car insurer. So weigh this up carefully.

Switching is not always necessary

Although switching car insurance can pay off, that will not always be the case. Even then, it is advisable to take a close look at your current car insurance and check whether the cover still matches the current value of the car, and whether it would be better to choose a more limited type of cover. Keep the following guidelines in mind:

• Increasing the cover to a more expensive type during the policy term is almost always possible straight away
• Reducing the cover to a cheaper type during the policy term is often only possible to a limited extent, for example after the first year
• Switching from all-risk insurance to WA + limited casco is often worthwhile when the car is six years old
• Switching from WA + limited casco to third-party liability insurance (WA) is often only worthwhile when the car is ten years old

Finally, for older cars, always check whether other types of cover, such as youngtimer insurance or classic car insurance, are a better match for your changed needs. The premium for this kind of insurance is considerably lower, but do take all kinds of restrictions into account.

Right of withdrawal when switching car insurance

When you cancel and switch car insurance, you may have to deal with a cooling-off period. By law, consumers have a 14-day cooling-off period when they take out car insurance. This cooling-off period starts from the moment the policy is received, for example by post or by email. Within this 14-day period, you have the right to cancel the insurance free of charge and without giving a reason. It is important to mention that if you change your mind and cancel the insurance, you have also not been insured for any damage, with retroactive effect. It is also crucial not to simply remain uninsured, and to take out new car insurance straight away. The insurer may also grant a longer cooling-off period in its conditions, but this can never be shorter than 14 days.

Read also: Switching to a different casco insurance policy.