Saving on Insurance: Which Policies Do You Really Need?

Overinsured in the Netherlands: are you paying too much?

The average person in the Netherlands has 5-7 insurance policies. But do you need all of them? In many cases, no. Taking a critical look could save you up to €900 per year.

Which insurance policies are compulsory?

• Health insurance: Legally required for everyone over 18

• Third-party motor insurance: Compulsory if you own a car

• Buildings insurance: Often required when you have a mortgage

Which insurance policies are important but not compulsory?

Strongly recommended

• Personal liability insurance (AVP): From €3/month. Covers damage you accidentally cause to others. A must-have.

• Contents insurance: Protects your belongings against fire, theft and water damage.

Depending on your circumstances

• Income protection insurance: Essential for self-employed people without employees

• Term life insurance: Important if you have a mortgage — check this using our mortgage checker

Which insurance policies can you often do without?

Often unnecessary

• Funeral insurance: Saving for it yourself is often better value (lower costs)

• Legal expenses insurance: Significant overlap with cover or support from your trade union, a legal advice centre or your car insurance

• Travel and cancellation insurance: Already included with many credit cards — see our credit card comparison tool

• Glass insurance: Low risk, cheaper to pay for it yourself

• Breakdown cover: Check whether this is already included in your car insurance

How to save on your insurance

Tip 1: Compare every year

The insurance market is competitive. Comparing annually saves an average of €200-500. Visit our comparison page.

Tip 2: Increase your excess (health insurance)

Increasing it from €385 to €885 saves up to €300 per year. Only sensible if you expect low healthcare costs.

Tip 3: Combine policies

Many insurers offer a 5-10% multi-policy discount if you take out several policies.

Tip 4: Check for duplicate cover

Your credit card may already include travel or cancellation cover. And your car insurance may already include breakdown cover.

Tip 5: Pay annually rather than monthly

Annual payment is often 5-8% cheaper than monthly payment.

How much can you save on insurance?

ActionPotential annual saving Compare health insurance€100-300 Compare car insurance€100-200 Cancel unnecessary policies€150-400 Total€350-900

Put your savings to good use — for example, by topping up your emergency fund or applying the 50/30/20 rule.

Conclusion

Review your insurance every year. Cancel unnecessary policies, compare premiums and make informed choices. Your wallet will thank you.

Discover more money tips or use our financial tools.