Owning a car in the Netherlands is expensive — between insurance, road tax, fuel, and parking, costs add up quickly. But for many expats living outside the Randstad or with families, a car is essential. Understanding how Dutch car insurance works can save you hundreds of euros per year.
This guide explains the three coverage types, how the no-claims discount system works, and what you need to know about transferring your driving history from abroad.
Car Insurance Is Mandatory
In the Netherlands, every registered vehicle must have at least third-party liability insurance (WA-verzekering). Driving without insurance is a criminal offense that can result in fines starting at €610 and potentially having your vehicle confiscated.
Unlike personal liability insurance, car insurance is a legal requirement — not just a strong recommendation.
The Three Coverage Types
1. WA (Wettelijke Aansprakelijkheid) — Third-Party Liability
This is the minimum legal requirement. WA insurance covers damage you cause to other people, vehicles, and property. It does not cover damage to your own car.
- Best for: older cars (roughly 8+ years) with low market value
- Cost: approximately €30-60 per month, depending on your profile
- Logic: if your car is worth less than €3,000-4,000, the repair costs may exceed its value, making comprehensive coverage uneconomical
2. WA+ (Beperkt Casco) — Third-Party Plus Limited Comprehensive
WA+ covers everything in WA, plus damage to your own car from events outside your control:
- Theft or attempted theft
- Fire damage
- Storm and hail damage
- Collision with animals
- Vandalism
- Broken windshield
Best for: cars aged 3-8 years or worth between €4,000 and €15,000. Cost: approximately €50-90 per month.
3. Allrisk (Volledig Casco) — Fully Comprehensive
Allrisk covers everything in WA+, plus damage to your own car that is your fault — such as hitting a pole in a parking garage or a single-vehicle accident.
- Best for: new or high-value cars (under 3 years old or worth more than €15,000)
- Cost: approximately €80-150+ per month
- Note: if you are financing or leasing a car, the financing company typically requires allrisk coverage
The No-Claims Discount (Schadevrij Jaren)
The Dutch no-claims discount system is one of the most important factors in determining your premium. For each year you drive without making a claim, you accumulate one schadevrij jaar (claim-free year). Most insurers allow up to 25+ claim-free years.
The financial impact is substantial:
- 0 claim-free years: you pay the base premium (or even a surcharge)
- 5 claim-free years: approximately 40-50% discount
- 10+ claim-free years: approximately 60-75% discount
A single at-fault claim can cost you 5 or more claim-free years, which may increase your premium by hundreds of euros per year for several years. This is why many drivers choose to pay for minor damage out of pocket rather than claiming.
Transferring Your No-Claims History from Abroad
Good news for expats: many Dutch insurers accept no-claims history from abroad. However, the process has specific requirements:
- You need an official letter from your previous insurer stating your claim-free years. The letter should include dates of coverage, number of claims (or lack thereof), and be on official letterhead
- The letter must typically be less than 12 months old
- Not all years may transfer equally — some insurers cap foreign no-claims years at 5, while others accept up to 10 or more
- Translation may be required — if the letter is not in English or Dutch, you may need a certified translation
Pro tip: Before leaving your home country, request a detailed claims history letter from your insurer. It is much easier to get this before you cancel the policy.
What Affects Your Premium?
Dutch car insurance premiums are calculated based on several factors:
- Claim-free years — the biggest factor, as discussed above
- Age and driving experience — drivers under 24 pay significantly more
- Postal code — urban areas like Amsterdam and Rotterdam have higher premiums due to more accidents and theft
- Car type and weight — heavier, more powerful cars cost more to insure
- Annual mileage — fewer kilometers means a lower premium
- Deductible — a higher eigen risico lowers your monthly premium
Road Tax (Motorrijtuigenbelasting / MRB)
In addition to insurance, every car owner in the Netherlands must pay road tax. This is a separate obligation from insurance and is calculated based on:
- Vehicle weight — heavier cars pay more
- Fuel type — diesel cars pay significantly more than petrol; fully electric vehicles are exempt until 2025 and pay reduced rates from 2026
- Province — each province sets its own surcharge (opcenten)
For a typical mid-size petrol car (1,200-1,400 kg), expect to pay approximately €50-80 per month in road tax. Diesel cars of the same weight can pay €100-150+ per month. Road tax is billed quarterly by the Belastingdienst.
How to Get Car Insurance
Compare policies on websites like Independer.nl, Pricewise.nl, or Autoverzekering.nl. You can also go directly to insurers like Centraal Beheer, ANWB, Univé, or Interpolis.
You will need:
- Your Dutch driver's license or recognized foreign license
- The car's registration certificate (kentekenbewijs)
- Your BSN
- A Dutch bank account for direct debit
- Your no-claims history letter (if applicable)
Tips for Expats
- Consider whether you really need a car — public transport in the Netherlands is excellent, and many expats find they can rely on trains, bikes, and occasional car-sharing (like MyWheels or Greenwheels)
- Get your foreign license exchanged — most non-EU licenses must be exchanged within 185 days of registration. EU licenses remain valid
- Join the ANWB — the Dutch equivalent of AAA/RAC, providing roadside assistance for around €70-100 per year
- Factor in total cost of ownership — insurance, road tax, fuel, maintenance, and parking together often exceed €300-500 per month
- Review your coverage annually — as your car depreciates, consider stepping down from allrisk to WA+ to save on premiums