Car insurance excess: how does it work for businesses?

What does the excess entail?

The excess is a pre-agreed amount that remains at your own expense when your vehicle is damaged. If the total damage exceeds this amount, the insurer will reimburse the remainder. For damage caused by an identifiable third party, the excess is usually recovered from the at-fault party's insurer.

• Mandatory excess with standard comprehensive coverage
• Voluntary excess for premium discount
• Adjusted conditions for repairs by affiliated repairers

Difference between mandatory and voluntary excess

Insurers often apply a standard mandatory excess for third-party, fire, and theft (WA volledig casco / all-risk) coverage. You can also choose to voluntarily increase this amount. By opting for a higher voluntary excess, the monthly premium of the policy decreases.

When selecting business car insurance, it is wise to carefully consider whether the financial risk of a higher excess suits your business situation and the company's cash flow.

Excess for repairs via contracted companies

Many insurers collaborate with specific car body repair shops. If you choose to have the damage repaired by a contracted repairer, the excess is often waived or significantly reduced. If you have the car repaired by a non-affiliated garage, a higher excess often applies.

When do you not pay an excess for business leasing?

A common exception is damage that can be fully recovered from another party who is liable. When the at-fault party is known and admits liability, the damage will usually be recovered directly from this party or their insurer. In such cases, you generally do not have to pay an excess, as the costs are not your responsibility. Different arrangements may also apply in the event of a total loss or theft, depending on the policy.

Is the excess tax-deductible for entrepreneurs?

The excess you pay on a claim is considered a business expense and can therefore be deducted from your company's profit. This lowers the taxable profit, which ultimately leads to less income tax or corporation tax payable. Ensure you keep all relevant receipts and claim forms to support your administration. If in doubt about the exact tax implications, it is advisable to seek advice from a tax advisor or accountant.

Frequently asked questions