What is liability insurance?

With third-party liability insurance, therefore, only the damage you cause to others is covered. Damage caused by others driving your car is also covered. Damage to your own car is not covered under third-party liability insurance. The Motor Vehicle Liability Insurance Act requires car owners to insure their vehicles against liability-related damage. In the event of damage to others, the insured amounts are:

• A minimum of €6,070,000 per accident for personal injury.
• €1,220,000 per accident for property damage (since 2017).

As soon as you register a car in your name, you’re required to purchase liability insurance. This applies even if your car isn’t driven on public roads. If you’re not going to use the car—for example, if you’re restoring it—you can suspend the registration. This temporarily suspends the insurance requirement. You can be fined for failing to insure your car. This is easy to verify. Owners of cars that are registered in their name but aren’t insured by an insurer are therefore in violation of the law. Even if someone else is driving your car, you, as the registered owner, are required to have insurance.

Injured parties may file a claim directly with the insurer

In the event of damage, the injured party may make a claim directly against the car’s insurer. This is usually done by filing a notice of liability. Injured parties have what is known as a right of direct action.

As the name of this type of auto insurance suggests, it providescoverageexclusively for damage to others. This means you cannot file a claim with your auto insurance for damage to your own car. Insurers are permitted to expand third-party liability coverage, for example, by offering higher coverage limits for personal injury. More limited coverage is not permitted. Damage caused by others who were driving the car is also covered. Even if your car is stolen and an accident is caused with it, the insurer will pay out for the liability damages.

Due to its limited coverage, this auto insurance is only recommended for older cars. For a car with a current market value of €1,000, it doesn’t make sense to opt for very comprehensive coverage. However, you might want to consider choosing limited comprehensive coverage. The premium is only slightly higher, and you’ll receive compensation for things like broken windows and hail damage.

Other Coverage

• Third-Party Liability Coverage
• Limited Comprehensive Coverage
• Comprehensive Auto Insurance (All-Risk)

Some supplemental insurance plans are very useful. We'll explain all the supplemental insurance options to you so you can make an informed choice.

Check out the pros and cons of supplemental insurance

Are you looking to purchase third-party auto insurance? If so, it’s a good idea toshop around. The differences between insurers can be significant. It’s especially worth comparing rates if you’rea young driver. Premiums for third-party auto insurance for 18- and 19-year-olds have never been higher. On alpina.nl, you can easily calculate your premium. Enter your information and find out which third-party auto insurance policy is the best fit for you.