Premium structure
The premium calculated by an insurer for transport insurance is dependent on a large number of factors. The insurer has to set the premium in way that the insured risk as well as the expected claims will be covered.
Furthermore, the insurer has to be able to set a part of the premium-income aside for unexpected expenses in the future. In addition, a part of the money has to remain to cover the overhead costs of the insurer (staff, offices, etc.) while keeping in mind that the insurer has to make a some profit as well. The premium has to be sufficient to cover all the above mentioned costs.
Insured amount
Your vehicle will be insured for the original Dutch catalogue value. This amount is stated on your vehicle insurance policy. Has your car been damaged? The insurance will then reimburse an amount up to the original Dutch catalogue value. The vehicle will be insured for the original Dutch catalogue value because when damaged, the damage report will be based on purchase and assembly of new parts.
Some examples
When the polish is damaged, usually a complete part of the car body (the hood for example) has to be re-painted. New polish is used for this. When a tire or rim/wheel is damaged, a new tire or completely new rim/wheel will be bought. It is unusual to mount a used/second hand tire or rim/wheel.
Should we insure the car for current market value (or day value), a higher premium has to be paid. This premium will be higher to be able to compensate the premium loss of the insurer while the risk of damage does not necessarily decrease. When the premium income is lower, in combination with same claim levels, the insurer will lose a margin which will put a healthy business conduct under pressure.
What is the original Dutch catalogue value?
The listed value is the Dutch retail price of your car, including taxes (bpm) and a waste disposal fee. The total price is determined by the brand, model, type, edition and accessories that were installed in the factory.
The insured amount on your policy is equal to the listed value on the day of delivery in the Netherlands of your 1A license plate. If the car, on this day, is no longer new, the listed value on the day the car was delivered as new will be used.
Exception
A taxation report has to be provided for an old-timer or the current market value has to be substantiated in writing one way or another.
