Car Insurance Deductible: Increase, Reduce, or Buy Out?

How does the car insurance deductible work?

Your car insurance deductible (eigen risico) is the amount you pay yourself when your own car is damaged, before your insurer covers the rest. This amount is per claim, not per year. Its size depends on the cover: third-party liability (WA) never has a deductible, because it insures damage you cause to others and the law prohibits an excess. Limited casco (WA+) and all-risk (comprehensive) policies do have a deductible for damage to your own vehicle. Most insurers set a standard deductible of €150 or €250, but you can often voluntarily increase it or, in some cases, lower it. Additionally, separate deductibles exist for glass damage, and some policies add an extra excess when a young driver is behind the wheel.

• Standard comprehensive deductible: typically €150–250 per claim, depending on your policy.
• Voluntary higher deductible: you choose €500 or €1,000 in exchange for a lower premium.
• Glass deductible: a separate, lower amount (often €75–150) that applies specifically to windscreen repair or replacement.
• Young-driver excess: an extra €250–500 when a driver under 24 or 27 causes damage.

How does your deductible affect the premium?

A higher deductible almost always leads to a lower premium, because the insurer carries less risk. Conversely, a lower deductible costs more in premium. The saving can be substantial: for a mid-range car you can see the comprehensive premium drop by 15 to 25 percent if you voluntarily raise the deductible from €250 to €500. As a concrete illustration: suppose you currently pay €55 per month for all-risk cover with a €250 deductible. By raising it to €500, your premium might fall to around €45, saving you €120 a year. This is not a guarantee—exact discounts vary by insurer, policy, and region.

Choosing a higher deductible is therefore a long-term trade-off. If you rarely claim, the premium reduction can outweigh the larger one-off excess should you ever need to claim. On the other hand, a single claim in the next few years could wipe out the accumulated savings. Many drivers with older cars and a healthy financial buffer opt for a higher excess, while those with a new car or a tight budget prefer the certainty of a low deductible.

If you want to save even more on your car insurance, combining a raised deductible with annual payment instead of monthly instalments is a proven strategy. Monthly payments typically carry a surcharge of 5 to 8 percent. By paying annually and choosing a higher deductible, you stack two premium advantages. It also pays to compare your car insurance without commission regularly, as embedded broker fees can eat up a large slice of your premium.

Separate deductibles for glass and young drivers

Beyond the standard comprehensive excess, many Dutch car insurers apply special rules for windscreen damage and young drivers. These can significantly influence your out-of-pocket costs at claim time, independent of your main deductible. It's crucial to understand these separate amounts before you adjust your general excess.

For glass damage, insurers often use a separate deductible that is lower than the comprehensive excess, for example €90. In some cases, glass damage is not counted against your deductible at all if you have the chip repaired rather than the whole windscreen replaced. Fixing a stone chip may then cost you nothing and usually has no impact on your no-claim bonus. Full windscreen replacement, however, often falls under the standard deductible or the separate glass excess. So check your policy terms: our article on car windscreen damage and your premium breaks down the differences clearly.

The situation is different for young drivers. If you add an 18-year-old son or daughter to your policy, some insurers charge an extra deductible of €250–500 for any claim that occurs while that driver is at the wheel. This amount comes on top of the standard deductible. Not disclosing a young driver is risky: after an accident, the insurer may refuse to pay out in full or at all because the regular driver wasn't declared. Read how to add a young driver to your car insurance correctly to avoid problems.

• Windscreen damage: usually a separate excess of €75–150; repairs are often free and don't affect your bonus-malus.
• Young driver: an extra deductible of €250–500 on top of the standard excess.
• Full glass replacement: may fall under the standard comprehensive excess, so you could pay up to €250 yourself.
• Disclosure is mandatory: failing to report a young driver can result in denial of cover for a claim.

Buying out or lowering your deductible

Besides raising the deductible, insurers sometimes offer the option to buy it out completely or partially. You do this by paying an extra premium, typically a few euros per month, so that you owe no deductible when you claim. This is a form of certainty: you know an unexpected repair bill won't blow a hole in your budget. Usually you can buy out the standard €250 deductible, but the separate excesses for glass and young drivers are typically not buyable.

Lowering the deductible—for example from €250 to €150—is possible with most insurers, but your premium then rises correspondingly. Since the standard deductible is already modest, the extra premium often outweighs the slightly smaller risk you're buying. In practice, raising is financially more attractive than lowering, unless you want to eliminate every last bit of uncertainty for personal reasons.

A middle way is to raise the deductible moderately, say to €400, and to use the savings to build up a buffer. This way you enjoy a lower premium and gradually reach a position where an unforeseen claim doesn't sting. But remember: buying out a deductible over several years can cost more than absorbing the full risk once. It's a purely financial trade-off that ties strongly to your savings habits and risk tolerance.

A choice that fits your financial buffer

The key question is simple: can you comfortably pay the deductible you choose on the spot if needed? A higher deductible of €500 or €1,000 can be a smart saving if you have enough savings and won't be troubled by a one-off expense like that. If you don't have a buffer, a low deductible or buying it out is more sensible—even though you'll pay more in premium. What matters is that you sleep soundly at night.

*These figures are purely illustrative. Actual premiums depend on factors such as the car, postcode, age, and claim-free years. Additionally, separate deductibles for glass or young drivers can bring extra costs not included in this table. Always consult your own policy wording.

Finally, for cars aged 8 years or older, it can be financially more attractive to downgrade from all-risk to WA+ rather than merely adjusting the deductible. The premium saving is often larger, and you avoid paying all-risk premiums for a car with a low market value. Read more about downgrading car insurance by age.

When is a thorough check worthwhile?

The optimal deductible depends on so many factors—market value, claims history, region, cover package, and personal finances—that arriving at the best choice on your own can be tricky. Moreover, policy conditions vary widely between insurers: one may offer a low premium with a high deductible and no separate glass excess, while another defaults to a low deductible but charges a higher base premium.

An independent, commission-free check can bring clarity. Such a check doesn't just map the premiums; it also examines the substance of the policy, like the size of deductibles, exclusions, and coverage limits. Because the advice firm receives no commission from insurers, its interests align with yours: a suitable policy at a net premium. Read more about how the free non-life insurance check works.

Your car insurance isn't the only thing affecting your financial picture. Other non-life policies, such as cover for a hobby drone or the consequences of water damage in your rental home, can produce unexpectedly high bills if the cover isn't right. For instance, explore drone liability and insurance or find out who pays when there's a leak from a neighbour. A total review of your non-life insurances prevents surprises.

The beauty is that you don't take on any obligations from such a check. You gain insight and can then decide for yourself whether to make any changes. It's a low-barrier way of testing whether your current deductible and premium are still optimal for your situation.