Mastering Deductibles: Why Aiming for Zero Financial Risk is Costing You Dearly

Human psychology makes us crave absolute security. When selecting an insurance policy, most expats intuitively select the lowest possible deductible (eigen risico) so that the policy pays out from the very first euro of damage. Insurers are acutely aware of this preference, and they penalize policies with a €0 deductible by heavily inflating the monthly premium. What many fail to realize is that you can flip this mechanism to your advantage. By voluntarily assuming a small fraction of the financial risk, the insurer rewards you with a massive, structural premium discount. Alongside moving to commission-free insurance advice to eliminate hidden commission costs, this is one of the most powerful strategies to cut your monthly insurance expenses. In this article, we expose the exact formulas behind raising deductibles on your Dutch car and home insurances.

Verified by a Wft-certified advisorLast reviewed for accuracy: 2026-06-15

Financially stable expats and professionals looking to optimize their portfolio and cut unnecessary fixed costs. · Updated: 2026-06-15

Important InformationThe information on this website is for general informational purposes only. This does not constitute personal financial or insurance advice and cannot be taken as a definitive answer. While we strive for accuracy, specific situations and policy conditions can vary depending on the insurer. Always request a free check with our associated advisor for advice tailored to your situation.

1. Auto Insurance: The Illusion of the €0 Deductible

When buying All-Risk or WA+ car insurance, you can select the deductible for damage to your own vehicle. Many choose €0 to avoid 'hassle'. However, insurers loathe processing micro-claims (like a €150 bumper scratch) because the administrative overhead is immense. Consequently, the premium for a €0 deductible is artificially steep.

Furthermore, there is a hidden penalty: if you claim that €150 scratch, you plummet down the bonus-malus (claim-free years) ladder. The resulting premium hike over the next five years will easily cost you €600. Check our claim-free years premium impact checklist to see the long-term cost of a single claim. Because claiming minor damages is financially foolish anyway, you will end up paying for small scratches out of pocket regardless. You might as well claim the premium discount upfront by officially raising your deductible to €250 or €500. If your car is older, you should also calculate whether keeping an All-Risk policy makes financial sense at all; see our guide on when to downgrade your car insurance and our accompanying All-Risk downgrade checklist.

2. Home Insurance: Insurance is for Catastrophes

The logic applied to car insurance is identical for your home contents (inboedel) and buildings (opstal) policies. Insurance was designed for catastrophes—like a kitchen fire or a flooded living room (damages of €10,000+). It was not designed as a subscription service to replace a dropped smartphone or a stained rug. Make sure you don't combine this with overlapping double insurance policies either.

By increasing your home deductible from the standard €0 to €250, your monthly package premium drops noticeably. Ensure your coverage matches reality with our contents valuation checklist. If you go 5 years without a major disaster, the accumulated premium savings will heavily outweigh the risk you took on. We recommend reviewing these options as part of your annual non-life insurance review checklist.

Frequently asked questions

Does my car deductible apply if someone else hits my car?

No. If the other driver is legally at fault for the collision, the entire repair bill is recovered from their third-party liability insurance. Your deductible is bypassed entirely, and your claim-free years remain untouched.

What if I choose a high deductible but cannot actually afford to pay it when damage occurs?

This is the exact financial risk you voluntarily accept by raising your deductible. The insurer will only pay the amount above your selected deductible, regardless of your personal cash flow at that moment. If your home contents policy has a €1,000 deductible and only €400 is in your account, you must find the remaining €600 yourself. The absolute golden rule is: never raise any deductible above the amount you could comfortably withdraw from your savings account the morning of the incident — without causing personal financial hardship.

Independent insurance advisor

Wft Certified

Our articles are sent to an internal Discord review flow and manually checked by an independent, Wft-certified insurance advisor (non-life personal & commercial) with years of experience in the Dutch market. This review ensures the content reflects current regulations and that the advice is strictly commission-free and in the consumer's best interest.

Last reviewed for accuracy: 2026-06-15

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