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WA casco still the wisest choice?

Jun 01, 2017
3 min reading time

Buying auto insurance is based on a moment-to-moment decision. You choose the most appropriate form of insurance at that moment. For a new car, you choose the WA casco car insurance, also called all risk. Years later, another form of insurance may be wiser.

The WA-casco is the most comprehensive insurance, but may not be the best choice. The premium should not be too high relative to the value of the car. Of course, you don't want to pay too much.

When is the WA-casco the most appropriate insurance?

The biggest advantage of WA casco car insurance is its broad coverage. If you cause a collision, you will also be compensated for your own damages. The more limited forms of insurance do not pay this type of damage. The premium is tailored to the new value of the car. Even if your car is, say, 12 years old, the premium is still based on the new-for-old value. The daily value is often only a fraction of the original new value. For an old car, you pay a comparatively high premium, but is that bad?

Can you be too comprehensively insured?

No, you can't. You can, however, pay comparatively too much. The easiest way to explain this is through an example.

A 2003 Volvo V50 is WA cascade insured. The new vehicle value (list value) was €32,500. The monthly premium is €50 based on 2 claim-free years. According to the price list of the ANWB, the current market value of the car is €1,250. Due to the low value, a comparatively high premium is due. By converting the insurance to third-party car insurance, about €25 can be saved each month. That's a savings of €300 per year. The relationship between the premium owed and the value of the car is skewed.

Claim-free years make WA cascolanger affordable

Insurers reward policyholders who drive claim-free with a discount of up to 75% and sometimes even more. With a high discount, the difference in euros between the third-party cascade and the cheaper forms of insurance becomes smaller. If the policyholder in the above example had 8 claim-free years, the premium difference would be much smaller. For example, the WA-casco would cost €30 and the WA would cost €13.50. The difference is now only €198 per year.

Don't be too quick to choose a cheaper form of insurance

You should not be too quick to decide to go for a form of insurance with more limited coverage. Suppose your car has a value of €5,000. You can save €250 a year by switching to third-party limited casco. You switch your insurance, and soon after, you cause an accident. Your car has €2,000 worth of damage. The insurer pays nothing, because your own damage in a collision is not insured in the limited liability insurance. The conversion has been an expensive decision.

For your car insurance, don't start saving by compromising on quality. Rather, choose another insurer with a lower premium.

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