Auto insurance premium not paid: the consequences.
Premiums for auto insurance are becoming less frequent. This can lead to the car no longer being insured and damages being recovered directly from the motorist. In addition, you will then receive high fines from the RDW. If you take it even further and are disbarred as a defaulter, this leads to an entry in a national database, which can cause problems in obtaining insurance for 5 years. Consumers underestimate the consequences of not paying the premium.
Fine due to non-payment of car insurance premium
When a car insurance premium is not paid, the insurance company - in case of 30 days of late 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.
Evading fine not possible
Many motorists do not realize that they can be fined if they do not pay the car insurance premium. Motorists also think they can avoid a fine from the RDW because they can prove with proof from the insurance company that they were insured. However, when coverage is suspended, the insurance company will not provide this proof. Thus, the fine must simply be paid, even if the premium is still paid at a later time. Incidentally, the premium obligation remains unaffected as a contractual obligation even if coverage is suspended.
Consequences of not paying car insurance
If coverage is suspended, the car is no longer insured. Nevertheless, many people continue to drive uninsured. Besides the fact that it is illegal to drive uninsured, damage caused by an accident is then also not reimbursed by the insurance company. As a result, the motorist is always held personally liable for the cost of the damage, which can amount to several thousand or even tons of dollars in the case of personal injury to an opposing party. This can have dramatic financial consequences for the motorist, who often does not realize it.
Cancellation for non-payment of car insurance premium
If arrears continue to rise after the suspension, the insurance company may proceed to cancel the insurance policy. This permanently removes the motorist from insurance and registers them in a national database. This makes it difficult to be accepted with any new insurance company.
Prevention is better than cure
Auto insurance policies are almost always collected by direct debit. If the direct debit fails, a payment reminder is sent. If payment is not made within the specified period, the insurance company will suspend the policy and the driver will be fined. Not paying the premium for car insurance really only has disadvantages. Therefore, prevention is always better than cure.
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