Car insurance premium not paid: the consequences.
Premiums for car insurance are being paid less and less frequently. This can lead to the car no longer being insured and the damage being recovered directly from the motorist. Moreover, you then receive high fines from the RDW. If you take it even further and are disqualified as a non-payer, this leads to an entry in a national database, which can cause problems in obtaining insurance for up to five years. Consumers underestimate the consequences of not paying the premium.
Fines for non-payment of car insurance premiums
When a car insurance premium is not paid, the insurance company - in case of 30 days' delay in payment - can suspend the car insurance coverage. As a result, the car is no longer insured. However, it is mandatory in the Netherlands to have at least legal liability insurance(WA insurance). The motorist thus risks a fine. As of January 1, the RDW actively checks whether all registered cars are insured.
If it turns out that a car is not insured, the registration holder is immediately fined €550 (as of 01-01-2016). Because the RDW can impose this fine three times a year, this amount can rise to €1,140. A fourth time will result in criminal prosecution and the motorist must appear in court.
No avoidance of penalty possible
Many drivers do not realise that they can be fined for not paying the car insurance premium. Drivers also think that they can avoid a fine from the RDW, because they can show proof from the insurance company that they were insured. However, when the coverage is suspended, the insurance company will not provide this proof. The fine must therefore be paid, even if the premium is paid at a later date. Incidentally, the obligation to pay the premium continues to exist as a contractual obligation, even though the coverage has been suspended.
Consequences of not paying car insurance
If the cover is suspended, the car is no longer insured. Nevertheless, many people continue to drive without insurance. In addition to the fact that it is illegal to drive without insurance, damage caused by an accident is not covered by the insurance company. As a result, the motorist is always held personally liable for the cost of the damage, which, in the case of personal injury to an opponent, can amount to several thousand or even tons of euros. This can have dramatic financial consequences for the motorist, who often does not realise this.
Expulsion for non-payment of car insurance premiums
If the arrears continue to increase after the suspension, the insurance company can proceed to cancel the insurance policy. This means that the driver is permanently removed from the insurance and is registered in a national database. This makes it difficult to be accepted by a new insurance company.
Prevention is better than cure
Car insurance policies are almost always collected by direct debit. If the collection fails, a reminder is sent. If the payment is not made within the specified period, the insurance company will suspend the policy and the driver will receive a fine. Non-payment of the car insurance premium has only disadvantages. Therefore, prevention is always better than cure.
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