Motor vehicle insurance
Insurance for vehicles, ranging from compulsory third-party cover to fully comprehensive.
Definition
Motor vehicle insurance covers vehicles across a spectrum of protection: compulsory third-party (WAM) cover at the base, limited comprehensive (third-party plus theft, fire and glass) in the middle, and fully comprehensive (all-risk) at the top, which also covers own damage. Businesses operating fleets choose cover levels based on vehicle value, usage and risk appetite, and arrange fleet policies accordingly.
Example
A logistics company insures its older delivery vans third-party only but takes fully comprehensive cover on its new fleet.
Why this is a business risk
Choosing an inadequate level of cover for business vehicles can result in material uninsured losses from theft, fire or collision. Fleet managers who do not review cover levels as vehicles age or as business use patterns change may find older policies no longer align with actual risk or vehicle values. Contract requirements that specify a level of cover for third-party suppliers must be monitored to ensure compliance throughout the contract term.
How to manage it
- Review fleet cover levels annually: as vehicles depreciate, the case for comprehensive cover diminishes, while new high-value vehicles may need it from day one.
- Maintain a central register of all fleet vehicles, their assigned cover level, and the policy renewal date for each.
- Check that employees who drive company vehicles are explicitly named or covered under the fleet policy, and understand what happens when they use their own vehicles.
- When contracting with third parties who use vehicles in your supply chain, specify the minimum cover level required and obtain confirmation at contract start and renewal.
Legal references
Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.
Frequently asked questions
Common questions about this term.