Car insurance prices soar

Premiums on car insurance in the Netherlands are increasing rapidly this year, according to research done by comparison site Independer. Liability insurance in particular saw a massive premium hike recently, ANP reports.

A new liability insurance yearly premium is currently an average of 89 euros more expensive than it was in December last year, an increase of 20 percent. Limited hull insurance is an average of 73 euros more expensive, up 15 percent and all-risk insurance is 65 euros more expensive, an increase of 9 percent.

According to Independer, young people in particular are feeling the premium increases. Where young people's car insurance cost an average of 884 euros per year last year, it is now 1,012 euros per year.

"The strong increase in premiums in recent months suggest that insurers responded to the call by DNB", according to Independer. The Dutch central bank called on insurers to increase their premiums because of losses suffered on motor insurance in recent years.

Independer CEO Ruud Martens thinks there are other ways to lower the losses. "For example, with driving behavior insurance the knife cuts both ways. Motorists are rewarded for driving correctly and damage claims therefore falls." he said according to ANP.

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