Which three types of car insurance are there?

Third-party liability

Covers the damage you cause with your car to others. This is required by law under the Dutch Motor Insurance Liability Act (WAM).

Your own car is not covered. If you drive into a post yourself, you pay for that yourself.

Third-party, fire and theft: third-party plus

To that are added fixed causes outside your control: fire, storm, theft, glass damage, break-in and collisions with an animal.

What it does not include is damage caused by your own actions. If you drive into something yourself, that is still at your own expense.

Comprehensive cover

Also covers your own fault: driving into a post, leaving the road, vandalism. Everything that happens suddenly and is not excluded.

This is the most expensive form and the only one under which a mistake of your own is paid for.

The rule of thumb

Work out what your car is worth now and how much you pay in premium plus excess for comprehensive cover. If the market value drops below roughly three to four times that annual cost, comprehensive cover becomes hard to justify.

For a car of three years or older, third-party, fire and theft is often the better choice. For a car on finance the lender usually requires comprehensive cover.