Why does my insurance premium rise every year, even without claims?

Short answer: yes, premiums often rise without claims

The short answer is that your premium can rise because the underlying costs for insurers increase, even if you haven't claimed. Your individual claim-free record matters a lot, but it's not the only factor in premium calculation. Insurers look at the collective claims picture: are average repair costs for car windscreens rising in the Netherlands, is the number of burglaries in your postcode area climbing, or are houses becoming more expensive to repair after a storm? These factors push up the gross premium for everyone. Meanwhile, your no-claim discount may grow, but if that growth doesn't offset the higher base rate, you still see a net increase on your policy schedule.

• Inflation and rising material costs
• More frequent claims due to extreme weather
• Costlier repair techniques (sensors, cameras in cars)
• Indexation of insured amounts on home insurance
• Rising labour costs in the repair sector

Gross premium and no-claim discount: a misleading balance

Many people think their premium falls if they stay claim-free. That's only half the story. The premium you see on your policy – the net premium – consists of two parts: the gross premium and the no-claim discount. The gross premium is the amount the insurer calculates before applying your claim-free years and other discounts. This gross premium is indexed annually based on general market cost increases. If the gross premium rises by, say, 6% while your no-claim discount only grows 3% compared to last year, you end up paying more net. This effect is common with car insurance: you climb the bonus-malus ladder, but the rungs beneath you get more expensive.

Moreover, that no-claim discount has a downside: claiming a small damage can set your discount back by more than 5 years, resulting in a higher premium for years. So it's not always wise to claim every scratch. Read more about the impact of claim-free years on your premium and how to make a well-considered choice.

Costlier repairs and more claims: the external drivers

Beyond general inflation, specific trends push insurance premiums up. For car insurance, modern cars are packed with advanced sensors, cameras and driver-assistance systems. A simple parking bump to a bumper can easily cost €1,500 to €3,000 due to radar calibration. A windscreen with a head-up display is a multiple of the price of a standard screen. Even if you don't claim, the higher average claims costs drive up the gross premium for all policyholders.

Weather also plays a role. In the Netherlands, we see an increase in heavy rainfall and storms leading to more water and storm damage claims. The insurance industry speaks of a rise in claim numbers due to climate change. After a year with many storms, insurers often collectively raise premiums for buildings insurance to absorb the higher risk.

• Average car repair cost: from around €2,100 in 2019 to €2,800 in 2025 (industry figures)
• Windscreen repair with camera system can cost up to €1,200 instead of €300
• Plasterwork restoration after a leak: €2,500-€5,000 due to increased material prices
• Replacing a roof tile set after a storm: 15% more expensive due to building material scarcity

For older cars, like a classic car, different premium principles often apply: repair costs aren't necessarily lower, but claim behaviour is different. Learn how classic car insurance differs from standard policies.

Indexation on contents and buildings: your insured sum grows along

For contents and buildings insurance, indexation is a major but often underestimated premium driver. To prevent you from being left with an underinsured amount after a claim – underinsurance – most insurers annually adjust the insured sum based on an index, such as the consumer price index or the construction cost index. For buildings insurance, the insured amount typically rises with the rebuild-value index, which has been growing faster than general inflation in recent years due to rising building materials and labour costs in construction. For contents, it can range from 2% to 5% per year.

Suppose you have a contents insurance with a sum insured of €50,000. After a 4% indexation, it rises to €52,000. Your premium increases with it, even if you haven't bought any new items. For tenants in a student room, that automatic increase can be unnecessarily expensive: the contents value of a room is often lower than the standard index suggests. So also read about insuring a student room without excessive indexation costs.

What you can do yourself: 5 concrete actions

When advice is useful: the premium check

If you've had the same policies for years and the premium hikes are grating on you, it's time for a thorough analysis. A premium check by an independent advisory firm – without commission interests – can clarify whether your current policy still fits. Unlike a comparison site, where you mainly filter on price, an adviser looks at the content: are you overinsured, underinsured, or carrying hidden costs from the past (such as a 20% commission surcharge built into your premium)?

The commission-free insurance advice check via PolisMoment is non-binding: one office lays out the figures, explains the options, and then you decide. There's no obligation to switch and you're not forwarded to multiple parties. That way you get peace of mind in your insurance affairs, without spending hours on it.