# Motor vehicle insurance

Source: https://contracko.com/glossary/motor-vehicle-insurance

# 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.

### How Contracko helps

Contracko tracks insurance clauses and renewal deadlines stored in your contracts, so fleet coverage obligations towards third-party contractors are flagged before they expire. Storing vehicle insurance requirements alongside the underlying contracts means your operations team can verify compliance in one place rather than chasing individual confirmations.

## Legal references

- [BW 7:925 Dutch Civil Code: insurance contract Dutch law](https://wetten.overheid.nl/BWBR0005290)

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.

## Relevant for

[Logistics & Distribution](https://contracko.com/industries/logistics)[Freight Forwarding](https://contracko.com/industries/freight-forwarding)[Construction](https://contracko.com/industries/construction-industry)

## Related clauses

- [Insurance Obligation Clause](https://contracko.com/clause-library/insurance-obligation)

## Related terms

- [Motor vehicle liability insurance](https://contracko.com/glossary/motor-vehicle-liability-insurance)
- [Public/general liability insurance](https://contracko.com/glossary/public-liability-insurance)
- [Buildings insurance](https://contracko.com/glossary/buildings-insurance)

### Never miss a contract deadline again

- AI finds renewal and notice dates
- Risks and obligations are surfaced automatically
- Reminders help you act before dates slip

Drop a contract to start

PDF, DOCX, PNG, or JPG

[Start 7-day trial](https://app.contracko.com/register?appLanguage=en&utm_source=glossary_sidebar&utm_medium=lead_magnet&utm_campaign=glossary_sidebar_contract_upload&content_slug=motor-vehicle-insurance&content_title=Motor+vehicle+insurance&cta_placement=glossary_sidebar_cta&source_tool=glossary_sidebar_motor-vehicle-insurance)

GDPR compliant. Encrypted. Never used for AI training.

## Frequently asked questions

Common questions about this term.

- **Q:** What is the difference between beperkt casco and allrisk?
  **A:** Beperkt casco (limited comprehensive) covers own-vehicle damage from theft, fire, glass breakage and certain weather events but not from a collision you caused. Allrisk (fully comprehensive) covers own-vehicle damage from all causes, including collisions where you are at fault.

- **Q:** Does a fleet policy automatically cover all vehicles added after the policy start date?
  **A:** It depends on the policy. Many fleet policies include an automatic inclusion clause for new vehicles up to a maximum period (often 30 days), after which the insurer must be formally notified. Always check the policy terms when adding a vehicle.

- **Q:** Can a business vehicle be insured for private use by employees?
  **A:** Yes, but it must be declared to the insurer. Many business fleet policies can be extended to cover private use by authorised drivers. Undeclared private use can void cover for an incident that occurs outside business use.

- **Q:** Is a rented or leased vehicle automatically covered by a business fleet policy?
  **A:** Not automatically. Leased vehicles are often covered under the lessor's own policy (which the lessee pays for via the lease fee), while short-term rental vehicles may require a separate waiver or extension. The applicable policy must be checked before each rental or lease arrangement.

- **Q:** What happens to insurance cover when a vehicle is sold?
  **A:** The seller must notify the insurer immediately upon sale. Cover typically transfers for a short period to the buyer under WAM (to protect third parties), but the seller's own-damage and comprehensive cover ceases at the moment of transfer. Both parties should ensure continuous cover is in place from the handover date.

## See these terms in your own contracts

Upload a contract and Contracko pulls out the key terms, dates and obligations, then reminds you before each one matters.

[Start 7-day free trial](https://app.contracko.com/register?appLanguage=en)

Book demo