One in five motorists chooses unnecessarily expensive insurance | Money

In particular, people who actually only need the mandatory third-party liability cover regularly opt for a higher cover, according to the comparison website. 17.6% of them also opt for the most comprehensive all-risk car insurance. “That’s a shame, because an all-risk insurance policy costs you hundreds of euros per year, while it is often of little use,” says expert Amanda Bulthuis of Geld.nl. “Many people insure their car with all-risk coverage because they are afraid that they will not be able to pay the damage otherwise. But in the event of damage, you get relatively little in return in the case of an older car that has already decreased considerably in value.”

The comparison website concludes this after a sample of two thousand motorists who took out car insurance via the site between January and May 2022. It looked at which cover the motorists chose and whether it is appropriate for the value and age of the car.

Coverage too low

The research shows that consumers sometimes opt for coverage that is too low. Consumers who have a fairly new car or a car that is still worth a lot should opt for the most extensive all-risk car insurance according to Geld.nl.

Nevertheless, 12.7% of the people who are advised this cover opt for a lower cover. According to Bulthuis, that is an unwise choice. “People may be shocked by the higher premium, but if you choose too low coverage for your car, you have to pay a considerable amount yourself in the event of major damage to your own car. You must be able to do without that,” adds Bulthuis.

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