What is Motor Vehicle Insurance?

Motor vehicle insurance is structured in three coverage tiers. The mandatory third-party liability cover (WAM) protects other road users, if you hit a parked car, the third-party damages are paid. Damage to your own vehicle is not included.

Limited casco adds a defined set of own-damage risks: theft or attempted theft, fire and explosion, storm and hail, windscreen damage, collision with animals, and damage from aircraft or explosive devices. Damage caused by the driver's own fault (such as a collision or driving off a road) is not covered.

Full casco (comprehensive/allrisk) covers all damage to the insured vehicle, including at-fault collisions, vandalism, and single-vehicle accidents. It is the most complete and most expensive tier, most appropriate for newer or higher-value vehicles.

For business vehicles, two additional points are critical. Commercial use must be explicitly declared on the policy; without this declaration, the insurer may restrict or deny cover for commercial trips. The driver clause must also be checked: who is permitted to drive the vehicle, and are there minimum age requirements?

A fleet policy (wagenparkverzekering) covering all vehicles under a single policy with one premium and one renewal date is typically more cost-effective than individual policies and significantly simpler to administer for a business with three or more vehicles.

An incorrect or incomplete motor vehicle policy produces financial surprises at the worst possible moment, after an incident. If commercial use is not declared or the driver is not covered, the insurer refuses the claim and the business bears the cost directly.

Centralise all vehicle details, coverage levels and renewal dates in a single register and verify annually that the declared use still matches actual practice.