Anyone who switches to a different third-party liability insurance (WA) policy can save tens of euros a year by doing so. Special offers and changes in the policy conditions are valid reasons to switch. Switching used to be quite a job, but nowadays the switching process takes place online. WA.nl explains how switching to a different insurer works. This page describes the situation in the Netherlands.
Reasons to switch third-party liability insurance
Over the years, competition has developed between insurers. One offers the same insurance at a sharper price than another. Thanks to this competition, there are big price differences. Consumers can benefit from this by choosing insurance with the lowest possible premium but the most complete cover possible. Various factors affect the costs of third-party liability insurance.
The number of no-claims years also counts. Some car insurers are cheap if you have few no-claims years, but become relatively less attractive as the number of no-claims years you have built up increases.
Expensive insurance is not by definition better than cheap third-party liability insurance. It does happen that an expensive policy offers better cover, but that is the exception rather than the rule.
Switching to save money
Research shows that there are considerable price differences between car insurance policies with the same cover. The most expensive insurer, for example, charges no less than three times as much premium as the cheapest policy. That is why it pays to compare third-party liability insurance. Changing your third-party liability insurance can easily save you €200 a year.
Dissatisfied with your current insurer
Not happy with the service of your current third-party liability insurer? You may have problems with the handling of a claim, or you may not be able to get in touch with the insurer. Or perhaps you think the premium is too high compared with other insurers. In that case, consider switching to a different insurer that offers better rates and better customer service.
Multi-policy discount with a different insurer
If you have several insurance policies with the same insurer, you may qualify for a multi-policy discount. This can be as much as 10% of the total premium. If, for example, you have home contents insurance and travel insurance with a different insurer, it is worth finding out whether you would get a discount if you also moved your third-party liability insurance to that other insurer.
Bought a new car
If you have bought a new car, your current third-party liability insurer may no longer be the best option. For example, you may want an insurer that specialises in sports cars or classic cars. Compare different insurers and see which insurer offers the best cover and premium for your new car.
Moving house
If you are moving house, this can also affect your third-party liability insurance. If, for example, you are moving to a busy city or a neighbourhood with a high risk of burglary, the premium for your third-party liability insurance may be considerably higher than before. You may also want to live near your insurer. So compare different insurers to find the best option for your new living situation and save on your premium.
Adjusting your cover
If your current third-party liability insurance no longer offers the right cover for your car, it is time to switch. With an older car, for example, casco cover can become unnecessary, so that third-party liability insurance is enough. If you want more security instead, you can choose more extensive cover, such as limited casco. Your current insurer can of course offer this, but a proposal from a different insurer may be more interesting.
Improved technology
Insurers are making more and more use of new technology to assess risks and set premiums. This can be done, for example, with black box technology or driving behaviour analysis. If your current insurer does not offer these technologies, or your insurer forces you to use this technology against your wishes, it may be worth switching to a different insurer.
Switching to business use
If you are going to use your car for business purposes, it is important to switch to third-party liability insurance for business use. For entrepreneurs, different conditions and cover apply than with a private policy. There are insurers that specialise in insuring business cars and that may be a better option than your current policy.
How switching to a different third-party liability insurer works
Switching to a different third-party liability insurer online is very easy. When switching to a different third-party liability insurer, there are three simple steps to go through. In practice, many third-party liability insurers offer a switching service and will help the new customer make the switch.
- Submit an application to a new third-party liability insurer
When switching, it is important that a new third-party liability insurance policy is applied for with a different insurer. Which insurer is chosen can depend on several factors. When offering the policy, the insurer itself looks at several factors, such as the type of car (determined from the registration, the licence plate), the owner's place of residence, how many kilometres are driven per year and how many no-claims years the motorist has built up. The new insurer checks the number of no-claims years through a database. It is advisable to always submit a new application first and only then cancel the old third-party liability insurance. The new insurer may refuse you, and then there is a risk of ending up without third-party liability insurance.
- Choose a start date
When the motorist applies for a new policy, a date can be agreed on which the insurance is to start. This date must be the same as the day on which the old third-party liability insurance is stopped. You should therefore first check when the old policy will end. The notice period that applies is stated in the policy conditions. There are also insurers where the third-party liability insurance can be stopped immediately. During the first year of the contract, however, switching is often not possible, although there are exceptions. For example, if the insurer decides to increase the premium. Ask your current third-party liability insurer for more information on this.
- Cancel your current third-party liability insurance
Finally, the contract with the current insurer must be cancelled. Do this after you have received the final decision from the new third-party liability insurer. In many cases you can cancel by phone, but more and more often it can also be done digitally using a web form. In any case, it is important to have proof of cancellation. That is why cancelling in writing is always preferred. Good to know: if the policyholder is uninsured for a while because the previous policy has already been stopped but the new one has not yet started, they must not drive. Taking part in traffic is then a criminal offence. That can get the driver a fine.
When can I switch?
Third-party liability insurance comes with a contract term. A contract usually runs for one year. Anyone who wants to switch can cancel the policy with effect from the end of the insurance period. The law sets a notice period of two months for this; the insurer may not agree a longer period (articles 7:940(1) and 7:943(2) of the Dutch Civil Code, Burgerlijk Wetboek, BW). The expiry date of the contract is stated on the policy schedule. A letter is not necessary: the policyholder can always cancel electronically as well, for example by email or via a web form (article 7:940(6) BW). If the insurer changes the conditions to the policyholder's disadvantage, the policyholder may cancel the policy with effect from the day the change takes effect, and in any case up to one month after the change was announced (article 7:940(4) BW).
Selling your car? Then you may switch to a different car insurance policy before the end of the term. You will need the certificate of indemnity (vrijwaringsbewijs) for this. Most car insurers will refund the premium already paid for the remaining period and end the policy. The insurer may also keep the premium already paid and deduct it from the future premium for the new car. In any case, make sure that you are never without third-party liability insurance, or you could get a fine.
Taking your no-claims years with you?
No-claims years are built up with every insurer. They are checked by the insurer, but must be reported to the new insurer in advance. Don't know how many no-claims years you have built up? Then you can request this from your current insurer.
Anyone who uses a no-claims protector should realise that it is not valid with the new insurer. A no-claims protector means that a policyholder can make a claim at most once a year without the no-claims discount going down. The new insurer looks at when a claim was made, but does not take the no-claims protector into account. As a result, a new policy may end up being more expensive than the current one. It is useful to keep this in mind when choosing a policy.
Read also: 10 tips to save money on third-party liability insurance.
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Frequently asked questions about switching third-party liability insurance
By switching to a different third-party liability insurer, you can save a lot. There are a number of things to pay attention to, though. After all, you don't want to end up without any third-party liability insurance at all. To help you with this, we have answered a number of frequently asked questions about switching third-party liability insurance.
Is switching third-party liability insurance always cheaper?
No, that is not always the case. Every insurer uses its own rates. In addition, some people are caught in what is known as the no-claims protector trap. They have a limited number of no-claims years, but still enjoy a high discount on the no-claims ladder (bonus-malus ladder). The new insurer, however, only takes the no-claims years into account, so a higher premium is calculated. In other words, switching third-party liability insurance is sometimes cheaper and sometimes not. That is why comparing is extremely important.
Is cheaper third-party liability insurance also cheaper in the long term?
No, that is not always the case. It is important to take a close look at the no-claims table (bonus-malus table). Each step comes with a discount percentage. Some insurers use more or fewer steps. This affects how quickly the maximum discount is reached. Sometimes your current insurer, which is still slightly more expensive now, can turn out to be cheaper after a few years. In other words, comparing again regularly remains important.
My old third-party liability insurance ends before the new third-party liability insurance has been accepted. What now?
Third-party liability insurance is compulsory, so it is important to take action. Fortunately, some insurers offer provisional cover for problem situations like this, pending acceptance or refusal. Not every insurer grants temporary cover, however. And the fact that no temporary cover is granted does not mean that the application will be definitively rejected (or vice versa).
I have been refused by the new third-party liability insurer. Why is that?
That can have various causes. An insurer takes many things into account, such as the value of the car, the engine power of the car and the safety equipment of the car. Other matters can also play a role, such as the number of no-claims years, a history of non-payment or a criminal record. You can ask the insurer for a clear reason.
Can I leave my third-party liability insurer without costs?
That differs per insurer. With some insurers, cancellation charges or termination fees have to be paid if you cancel before the end of the term. This is usually offset against any premium you are still due to get back. Sometimes it is a few euros and sometimes it is tens of euros.