Why Identical Damage Insurance Cover Can Be Cheaper

Short answer: How can the same cover be cheaper?

The premium you pay for a Dutch non-life insurance (schadeverzekering) consists of several layers: the risk premium (expected claims for your profile), cost loadings for administration and distribution, the insurer's profit margin, and assurantiebelasting (insurance tax, 21%). The difference in total premium between two policies with identical cover almost always arises in the cost loading and distribution commission. Traditional policies sold via a broker often include an ongoing commission of 15% to 25% of the premium. More and more policyholders are switching to commission-free insurance advice, where the premium is based on the net rate without hidden costs. Additionally, insurers may differ in their risk assessments, portfolio size, and claims handling efficiency. A commission-free policy can offer exactly the same cover at a significantly lower premium simply because those commission costs are removed. The voluntary excess (vrijwillig eigen risico) and exact policy conditions also influence the final amount. Cheaper policies sometimes carry a higher mandatory excess or stricter exclusions, so it is essential to look at the complete picture rather than just the monthly premium.

• Hidden commission embedded in the premium (with traditional brokers)
• Difference in deductible (higher voluntary excess lowers premium)
• Choice of cover: some policies include modules you do not need
• Claims handling: efficient digital processing versus more expensive personalised service
• Purchasing power: large insurers sometimes offer lower rates due to economies of scale

When this becomes relevant

Many households do not realise they have been holding the same policy for years without checking whether more attractive alternatives exist. This is often the case with automatically renewing non-life insurances such as car, contents and buildings cover. Because most people rarely make a claim, the premium does not stand out as a cost pain point. Yet over years of customer loyalty, the premium difference can amount to thousands of euros. Major life events — moving house, starting to cohabit, a child leaving home, or stepping out of a collective scheme — also present an ideal opportunity to review whether you can get the same cover at a lower price. It is also relevant if you are insured via a broker who never actively proposes alternatives, sometimes because their remuneration model provides little incentive to do so.

• Your policy is over 3 years old and has never been compared
• Your premium has risen over the past years without a clear reason
• You moved to a different postcode area, affecting your risk profile
• You drive fewer miles than when you took out the car insurance
• You have a broker who lacks transparency about commission

What determines the premium of a non-life insurance?

To understand why identical cover can be cheaper, you need to know the premium breakdown. The net premium (also called the risk premium) is the amount needed to cover expected claims. On top of that come the insurer's costs: administration, IT, staff, and a profit margin. Then the distribution channel adds a broker commission, often a percentage of the premium baked into the final price — for some policies 20% to even 30%. Finally, 21% assurantiebelasting is charged on this total consumer premium. When you choose a commission-free policy through an adviser working with net tariffs, that commission loading is stripped out. Additionally, an insurer with lower operating costs or a more favourable claims experience can charge a lower net premium. The fictitious example below shows how the same risk cover on a car insurance can differ by tens of euros per month.

What to check when comparing 'same coverage'

When comparing Dutch non-life insurances, 'the same coverage' is not always what it seems. Two policies may both offer third-party liability (WA) for your car, but one pays out based on current market value with depreciation, while the other replaces at new-for-old up to a certain age. Or a contents policy may include cover away from home as standard, whereas another offers it only as an optional add-on. Hence it is wise to place policy conditions side by side. At minimum, check the following points to determine if you are genuinely getting the same protection for a lower premium.

• Insured sum (contents: is the value up to date? Buildings: rebuilding cost vs market value)
• Deductible per claim: is it €0, €100 or €500?
• Voluntary excess and the discount: by increasing your Dutch insurance deductible you can lower your premium, but weigh whether you can afford the excess in a claim
• Exclusions: e.g. storm damage only from wind force 7, or inherent defects
• Claims handling: free choice of repairer or mandatory network repairer?
• Add-on modules: legal assistance, breakdown cover, passenger accident — are these included or separate?
• Indexation: is the insured sum automatically adjusted for inflation each year?

Common mistakes when saving on non-life insurance

Quickly switching to save on insurance often leads to mistakes that turn out more expensive in the long run. One common pitfall is focusing exclusively on the monthly premium and accepting an insured sum that is too low. Cancelling a policy before the new one becomes active can also create a gap in cover. Many consumers also forget that a private insurance may not cover business activities run from home, such as freelance work. If you regularly work from home as a self-employed person, it is worthwhile to check whether your private insurances still fit your situation. Another trap is failing to notify your insurer of a change of address, leaving your contents cover potentially inadequate for your new home. You can read more about updating contents insurance when moving. Overlooking small print about waiting periods in legal expenses or travel insurance can also cause nasty surprises at claim time.

• Comparing on price alone without checking cover
• Not accounting for the deductible when a claim occurs
• Cancelling a policy before the new one starts
• Forgetting that your private insurance usually excludes business risks
• Not reviewing annually whether your policy still fits your situation

How the free PolisMoment damage insurance check works

You can spend hours sifting through policy wordings yourself, but a fresh pair of eyes from an independent adviser can save you considerable time and point out things you may miss. PolisMoment connects you with one dedicated advice firm that works on a commission-free basis and analyses your current non-life insurances in detail. The check is non-binding: you receive an overview of what you currently have, where any gaps or overlaps exist, and whether there are policies offering identical cover at a lower premium. You are entirely free to decide what, if anything, you do with that insight. Read in detail how the free damage insurance check works and what to expect step by step.

When it makes sense to have an adviser look over your shoulder

Comparing yourself can work well if your insurance knowledge is up to date and you have the time to scrutinise all the details. In practice, there are situations where a detailed review by an adviser is especially useful: major life changes (move, cohabitation, new child, divorce, retirement), if you suspect your policy no longer fits, or if you are insured via a traditional broker and want to know whether you are paying too much commission. If you combine multiple non-life policies and want a complete overview, an adviser can assess their interrelationship and spot overlapping covers that you can eliminate.

• You have not looked at your policies in the past 2 years
• You pay via a broker and do not know how much commission is included
• You are considering switching but are unsure about the conditions
• You have recently had a major life event
• You suspect you are paying too much but want to avoid hassle