Car Insurance Rising? Premiums, Tips & How to Save

Texting while driving? Pay more for your insurance!

Insurance premiums have risen in recent years. Here, there is a direct correlation with the amount of road accidents in the Netherlands and Belgium. This increase is significant; premiums have definitely gone up by just under 10 per cent. And when we zoom in deeper into the accidents, it seems that talking on the phone and especially using an app behind the wheel is a major culprit.

Figuratively, the increases differ by type of car insurance. For example, third-party insurance, which is compulsory for every driver in Europe, experienced the biggest price increase, around 13 per cent on average. In contrast, total casco coverage has increased by only eight per cent. Total casco insurance covers not only the damage you potentially inflict on others but also damage to your own car. Alongside this, you can also opt for what is known as Third Party, Fire & Theft (TPFT). The latter type of car insurance has increased by just over 10 per cent.

Depending on your situation and potential risks, you need to make a personal consideration for which type of insurance you need. A practical question in which Autoglas Concurrent can assist you is: in which cases will your windscreen damage be reimbursed by the insurer?

A text! Put your phone on silent or in an unreachable place

Texting or handheld calling behind the wheel... Apparently, it hasn't yet dawned on the average driver that it's not wise. A (passenger) car can actually be deadly when the driver is not competent and/or not paying attention. 

The higher premiums for car insurance have to do with the number of accidents on the road, partly due to our bad habits such as “handheld” talking on the phone or using an app. Car insurers face higher costs due to this trend, which are then passed on to its customers. After all, the party owed is the customer, and despite high fines and the well-known ban, “handheld” calls and apps are still regularly made in the car.

If it doesn't come from the right, it must eventually come from the left. Thus, we see that the Justice Minister wants to impose harsher penalties on drivers who put others in (serious) danger. So-called reckless driving includes messaging while driving. For such offences, where an accident is caused, our minister plans to deploy penalties of up to 6 years in jail. Something that should deter us from grabbing our smartphones while driving. Should you find yourself in the unpleasant situation of being stopped on the road while using an app, you risk as much as two years in prison. Figures from Statistics Netherlands (CBS) indicate that 1 in 8 drivers sometimes use their smartphone while driving. 

Car insurance unaffordable for young people

If you are aged between 18 and 24, you will pay around €400 more for third-party insurance than in 2016. This is an increase of more than 50 per cent over two years! If this trend continues, the prognosis is that car insurance for young people will simply become unaffordable over time. Looking at the difference in premium levels for the young and old, we see a growth in the gap between the two age groups. Two years ago, the difference for the level of the third-party premium was almost 400 euros, now it is more than double.

The premium increase, of more of 50 per cent, for young people shows a disproportionate growth, compared to other age categories. Over-65s, for instance, saw the amount of their third-party insurance rise by less than 30 per cent in the same time. The fact that young people have more expensive car insurance is partly logically explainable, as logically the risk of damage is simply higher for drivers with less experience. Our meagre tip for saving on car insurance for younger drivers is to drive damage-free, so as not to push up the premium.

Ideally, insurers should encourage young people to learn safe driving and stick to it with a reward. This now happens only per claim-free year of driving with a rise on the bonus ladder with a small discount on your premium. This discount also varies by car insurer. So the idea from the politicians is to increase this discount increase for young people. Unfortunately, this is currently only future music.

Limburgers are unlucky

Besides the gap in costs for young and old, there are also location-specific differences. If we compare car insurance prices on a national scale, we also see differences by province. For instance, people in Maastricht turn out to be true unlucky drivers, paying over 25 per cent more for their car insurance than residents of our northernmost capital, Groningen. The reason? The number of car thefts in Limburg appears to be many times higher than in Groningen, related to the border over which people flee with the stolen vehicle. 

The trick remains to keep using your common sense and look at the different car insurance providers. Do not blindly go by the offers that are handed to you. Doing some (online) research can save you as much as hundreds of euros.