What is business car insurance?
Business car insurance works the same as a private policy but takes into account business use. The basis remains WA because it is required by law. WA limited casco and full casco offer extra protection against damage caused by burglary, fire or own fault. Your insurer should know how you use your car because more frequent and intensive driving increases the risk. The government does not prescribe which cover you should choose. You decide which form suits the value of your car and the role your car plays in your work.
Is car insurance compulsory?
Car insurance is always mandatory when your license plate is active. The RDW checks this several times a year. If your car is not insured, a fine will follow. You can only stop insurance if you suspend your registration at the RDW. During the suspension, you may not drive and your car may not be on public roads. These rules apply to everyone, including you as a self-employed person. It does not matter whether your car is used privately or for business purposes. The insurance obligation is separate from your business.
Difference between business and private car insurance
The difference is mainly in usage. A private policy assumes private use and commuting. Many insurers do not cover business trips such as customer visits, deliveries or trips with materials. A business policy does take this into account and provides cover during work trips. Also, business policies often allow multiple drivers. The premium is usually higher because business mileage creates more risk.
| Business insurance | Private insurance |
| Coverage during business trips | Focused on private use |
| Multiple drivers allowed | Business trips often excluded |
| Premium higher due to more usage | Premium usually lower |
Advantages
Business car insurance prevents your insurer from denying claims when you were on the road for work. If your car is part of your business assets, you can deduct car expenses such as fuel, maintenance, premium and road tax. You can reclaim VAT on costs if you are liable for VAT. If you drive more than five hundred kilometres privately, an additional taxable benefit applies. If you drive less than five hundred kilometres privately, no additional taxable benefit applies. If you use your private car for business trips, you can deduct €0.23 per kilometre from your profit.
Business car insurance benefits
- Certainty that business losses are covered
- Car expenses business deductible
- VAT refundable on business expenses
- Multiple drivers possible
- No discussion in claim settlement
What does business car insurance cover?
The cover is similar to private policies. TPL only covers damage you cause to others. WA limited casco offers extra protection against damage caused by fire, storm, burglary and windscreen damage. Full hull additionally covers damage caused by your own fault. The government only requires third-party liability insurance. You make the other choices yourself, based on the age and value of your car and the risks you run.
Additional covers
Additional covers are optional but can be useful. Occupant damage insurance reimburses injuries and belongings of you and your passengers. Accident occupant insurance pays fixed amounts. Traffic legal assistance helps in case of damage disputes. Breakdown assistance provides support when your car breaks down. Business belongings are not covered and need separate insurance.
Cost of car insurance for self-employed
The premium depends on your car, mileage and claims history. Business policies are usually more expensive because business mileage gives more risk. The government does not set prices. Each insurer makes its own premium. You take your claim-free years with you when you switch. The more claim-free years you have, the lower your premium. An older car is often covered by third-party or limited liability insurance. A new car is usually fully comprehensive insurance.
Cheapest choices in practice comparison
Your costs stay low when you choose only the coverage you really need. A higher deductible reduces the premium. Always check whether business trips are covered. The cheapest policy for others does not have to be the cheapest for you. The RDW only checks whether your car is insured.
Compare car insurance for self-employed
Here is a quick comparison of parties where self-employed people often get their car insurance. The government only requires you to be insured. The differences are in coverage, service and price.
| Provider | What it costs | What it does |
| Independer | Varies by insurer | Compares multiple business car insurance policies for you |
| Univé | Mid-range premiums | Own business policy with clear conditions |
| ASR | Middle to upper | Strong in business coverage and claims handling |
| Allianz | Higher | Wide coverage, suitable for many business kilometres |
| ANWB | Variable | Strong in roadside assistance and additional services |
| Central Management | Middle | Known for easy claims and business options |
Company car
When your company car state it belongs to your business assets. You book all costs as business expenses and deduct them from your profit. You reclaim VAT when you are liable for VAT. Addition applies when you drive more than five hundred kilometres privately. Below that limit, additional taxable benefit does not apply. If you use your private car for business trips, the car remains private and you use the allowance of €0.23 per kilometre. You will then not deduct any actual costs. So you choose the form that best suits your administration and your work.
