All the differences between third-party liability insurance (WA) and personal liability insurance (AVP)

WA stands for wettelijke aansprakelijkheid (legal liability). Third-party liability insurance (WA) and personal liability insurance (AVP) are often confused with each other. The most important difference: third-party liability insurance only applies to damage involving a motor vehicle, and personal liability insurance to damage caused as a private individual without a motor vehicle, including in traffic, for example as a cyclist or pedestrian. But besides this difference, there are other differences too. This article describes the situation in the Netherlands.

Main differences between WA and AVP insurance

Although third-party liability insurance and personal liability insurance both fall under the heading of liability insurance, there are certainly important differences between these two types of insurance. It is therefore important to check carefully whether third-party liability insurance or personal liability insurance is needed.

Difference 1: Obligation

Third-party liability insurance is compulsory by law. Anyone who owns a motor vehicle, or who is the registered keeper of one, is obliged to take out third-party liability insurance (Article 2 of the Motor Insurance Liability Act, WAM). This applies not only to a car, but also, for example, to a light moped (snorfiets) or an e-scooter (source: Government of the Netherlands, Rijksoverheid). With this insurance, the owner of the vehicle insures themselves against the damage that he or she causes to someone else with the vehicle. Anyone who does not have third-party liability insurance risks a fine.

Personal liability insurance, on the other hand, is not compulsory, but in many cases it is advisable to take it out. This insurance costs a few euros a month and covers the insured person and any co-insured persons against damage caused to someone else (or their belongings).

Why is third-party liability insurance compulsory and personal liability insurance not?

Third-party liability insurance is compulsory because, with so many road users, the chance of an accident is relatively high. The chance of damage is therefore also high. The amount of damage can quickly add up, and the chance that a road user can bear the damage themselves is small. That is why this insurance is compulsory by law.

There has been debate for quite some time about why personal liability insurance is not compulsory. Some experts argue for compulsory cover, because personal liability insurance is considered indispensable. After all, in everyday life costly damage can occur for which people are not financially prepared. Various studies have shown that unexpected damage often causes financial problems, and that is why good insurance is very important.

Difference 2: The cover

The cover differs as well. With third-party liability insurance, only damage caused with the motor vehicle to someone else (or their belongings) is covered. In short: it must have happened in traffic, and with the motor vehicle. Accidentally making a small scratch on your neighbour's car with a key is therefore not covered by this insurance. Personal liability insurance applies to that.

Damage to your own vehicle is not covered by third-party liability insurance either. That is no different with personal liability insurance: your own damage is not covered, but damage to someone else is. With third-party liability insurance, damage to your own vehicle can also be covered, but then fully comprehensive insurance or all-risk insurance is required.

Difference 3: Who is it for?

A third difference is who the insurance is intended for. Third-party liability insurance is intended for anyone who owns a motor vehicle and causes damage with it to someone else (or their belongings). Both personal injury and material damage are covered.

Personal liability insurance is intended for private individuals. The AVP covers all kinds of damage that the insured person may cause to others, including in traffic, for example as a cyclist. Only damage with or by a motor vehicle is generally excluded (Dutch Association of Insurers (Verbond van Verzekeraars), Fatbikes en verzekeren). Not only the insured person is insured, but possibly also his or her children, pets or property. Property that causes damage includes, among other things, roof tiles blown off in the wind. This falls under strict liability.

In addition, personal liability insurance really is intended only for private individuals. So not for people who are practising a profession or running a business. For that, there is professional indemnity insurance or business liability insurance.

Difference 4: Exclusions

Another important difference between third-party liability insurance and personal liability insurance is the number of exclusions. Third-party liability insurance generally has fewer exclusions than personal liability insurance. This is because third-party liability insurance is aimed specifically at damage caused with a motor vehicle. As a result, its scope is already very narrow. Personal liability insurance, on the other hand, has many more exclusions. For example, damage caused with a motor vehicle is excluded.

Difference 5: Premium

Another important difference between third-party liability insurance and personal liability insurance is the factors that determine the premium. With third-party liability insurance, the type of vehicle and the age of the driver are the main factors that determine the amount of the premium. With personal liability insurance, completely different factors play a role in determining the premium.

Summary of differences between third-party liability insurance and personal liability insurance

To make a well-considered choice between third-party liability insurance and personal liability insurance, it is important to know the differences between these types of insurance. The table below therefore lists the main differences between third-party liability insurance and personal liability insurance. This makes it easy to see which insurance best suits the personal situation.

	Third-party liability insurance (WA)	Personal liability insurance (AVP)
What is covered?	Damage caused with a motor vehicle	Damage that you may cause to someone else as a private individual, for which the insured person is liable under the law
Compulsory?	Yes	No, but recommended
Who does the cover apply to?	The owner and/or driver of the motor vehicle	The private individual who is held liable for the damage
Excluded damage	Damage to your own motor vehicle, personal injury to the driver of the motor vehicle ... In the case of intent or alcohol, the insurer does pay the victim, but can recover the damage from the policyholder or the driver (Articles 11 and 15 WAM)	Damage caused by motor vehicles, damage caused intentionally, damage to items that have been rented or borrowed, damage related to the possession and use of a weapon while hunting ...
Premium	Depends on various factors, such as the type of vehicle, the number of claim-free years and the age of the driver	Depends on various factors, such as dangerous hobbies, household composition and the amount insured
Excess	Often yes, but depends on the policy conditions	Often not, but depends on the policy conditions

Which insurance covers which damage?

Situation	Third-party liability insurance (WA)	Personal liability insurance (AVP)
Hitting another car with your car	Yes	No
Accidentally scratching the neighbour's car with a key	No	Yes
Knocking over a pedestrian as a cyclist	No	Yes
A roof tile from your own house blows onto the neighbours' car	No	Yes
Your own dog bites someone	No	Yes
Damage to your own car after your own mistake	No (that requires casco insurance)	No
Damage caused during work	No	No (that requires business liability or professional indemnity insurance)