Situations in which third-party car insurance does not pay for damage

Have you suffered damage? Then there is a good chance that you are now trying to claim this damage from your car insurance. It can happen that the damage is not covered. We call these cases, in which the car insurer does not pay for the damage, "exclusions". This page describes the situation in the Netherlands.

When is the damage not paid for?

There are all kinds of reasons why damage may not be paid for. For example, because you made a mistake yourself. Or because you did not have a valid driving licence but drove anyway. The terms and conditions of your insurance set out exactly which exclusions apply to your policy.

In any case, damage is not paid for in these situations:

You are driving without a valid driving licence;
The damage occurred because you were driving under the influence of alcohol or drugs;
The driver was driving your car without permission;
The damage occurred during a speed race;
The damage was caused intentionally;
The car was rented out to someone else;
Other passengers were being carried for payment (not carpooling).

With all insurance, and therefore also with car insurance, damage caused by a catastrophe is not insured. By catastrophes we mean natural disasters, wars, riots or nuclear reactions. In everyday language a flood is a catastrophe, but damage to your own car caused by a flood is usually covered by limited casco or all-risk insurance. Third-party liability insurance does not cover that damage, because it only pays for damage to others (source: the Dutch motoring association ANWB, car insurance cover in extreme weather).

If you do not have third-party liability insurance (WA), you will of course not receive any compensation either. What you will receive is a fine.

Damage to victims

Damage to victims is always paid for. This is also sometimes called personal injury. This is the basic principle of third-party liability insurance (WA). After all, a victim should not suffer the consequences of the driver's mistake.

So if a driver is drunk behind the wheel and drives into the neighbour's car, the neighbour simply has the damage paid for. The damage to the driver's own car will not be paid for. After all, the driver was drunk when he or she was driving. In some cases the insurer will even recover the damage paid to the victim from the driver. Then all costs must be paid back to the insurer.

Following the traffic rules

Anyone who wants a better chance of having their damage paid for would do well to follow the traffic rules. In normal traffic it is not allowed to hold speed races or to get behind the wheel after having a drink. That is why car insurance does not pay for it either.

In short: if you break the Road Traffic Act (Wegenverkeerswet), that could easily result in an exclusion on your car insurance. The damage you do to your own car will then not be paid for. The damage to someone else may have to be paid back. That is why it is a wise decision to follow the traffic rules.