Insurance can feel complex, especially if you’re unsure of the details. Here, we answer some frequently asked questions about insurance to help you understand it better.
What is insurance, exactly?
Insurance is an agreement between you and an insurer. You pay a premium, and in return, the insurer helps cover specific costs or damages. Insurance exists to offer financial protection against unexpected events, like accidents, illness, or damage to property.
What types of insurance are there?
There are various types of insurance, but the most common include:
· Health insurance: Mandatory in the Netherlands, covering medical expenses.
· Car insurance: Covers damage caused by or to your car.
· Home insurance: Protects your home and belongings (building and contents insurance).
· Travel insurance: For unexpected costs during travel, like medical expenses or baggage loss.
· Liability insurance: Covers damage you may accidentally cause to others.
How does the deductible work?
The deductible is the amount you pay yourself before the insurer starts covering costs. For health insurance in the Netherlands, there is a mandatory deductible of €385. This means you pay the first €385 in health costs yourself, and only then does your insurer begin to cover the costs. The deductible often doesn’t apply to supplementary insurance or certain treatments, like visiting a general practitioner.
What’s the difference between basic and supplementary insurance?
The basic insurance is mandatory and covers standard healthcare needs, like hospital stays and medication. Supplementary insurance is optional and provides additional coverage for things like physiotherapy, dental care, and alternative treatments. Supplementary insurance is especially useful if you have specific healthcare needs not covered by basic insurance.
When do I need travel insurance?
Travel insurance is most useful when traveling abroad. It can cover medical expenses, loss or theft of luggage, and unexpected costs due to cancellations. Traveling without insurance carries risks, as medical care in other countries can be very expensive.
How can I cancel my insurance?
Canceling insurance depends on the type of policy. Health insurance can typically only be canceled annually, often by December. Other insurances, such as car insurance, may have monthly cancellation options depending on the terms. Always check the cancellation period in your policy.
