Navigating the maze of insurance offers in Belgium can be confusing. Importantly, some are mandatory, and not taking these out is illegal.
After registering at the commune and setting up a bank account, new arrivals to Belgium must take out insurance. One type of insurance is obligatory for everyone, while others are compulsory depending on an individual's situation.
Which type of insurance is mandatory?
Everyone over the age of 25 (or under 25 and working or receiving benefits) and officially living in Belgium (registered with a commune in the country), must take out health insurance. This type of coverage is provided by health insurance funds, or mutualité in French and ziekenfonds or mutualiteit in Dutch.
People must join a recognised fund, which covers many basic health costs. Find more information on health insurance here.
Other types of insurance are not mandatory, but tied to contractual agreements. These include car insurance, which is mandatory for car owners, and fire/house insurance, which is mandatory for tenants.
Credit: Belga / Anthony Dehez
Fire/house insurance was made compulsory in Brussels in November, following amendments to the Housing Code. (This was already the case in Flanders and Wallonia.)
"Taking out this insurance is important: if a person rents a property and damage occurs, it is automatically presumed that the responsibility lies with the tenant," Peter Wiels, spokesperson for insurance companies association Assuralia, told The Brussels Times.
The obligation for tenants to present the landlord with proof of fire/house insurance is included in the lease. Property owners usually also take out insurance themselves for peace of mind.
Another popular but optional type of insurance is 'family insurance' (despite its name, it also covers single-person households). If any person covered by this insurance causes damage or injury and the affected person claims compensation, these financial consequences will be covered by family insurance.
"If you don't have this coverage, then you have to pay for everything out of your own pocket, which can cost an arm and a leg," said Wiels.
Some policies also cover legal assistance, if a person suffers loss or damage or sustains injuries because of someone else's mistake. Pets are often also covered.
Comparing costs
Comparing the cost of insurance in Belgium with those in other European countries is difficult. "Belgian car insurance is often said to be among the most expensive in Europe," Wiels said. "But this can be explained by taxation and the fact that the insurance covers more."
Belgium has the highest tax rate on car insurance in Europe (27.10%). However, it also has one of the most victim-friendly car insurances in Europe. "It includes automatic protection for vulnerable road users," Wiels explained. "If you hit a cyclist or pedestrian, the victim will be fully compensated by the driver's car insurance – even if the driver was not at fault."
The same applies to fire/house insurance, which also differs to other European countries. "In Belgium, this coverage includes protection against increasingly frequent natural disasters."
Fire/house insurance has therefore become more expensive in recent years. "The cost of repairing a house has gone up due to the tremendous rise in both building materials costs and natural disasters." Wiels noted that this is a Europe-wide problem.
"So, comparing costs is difficult. People may end up paying more here, but insurance is often more generous in Belgium."
What to know before signing a contract
There are various channels through which people can take out and learn about insurance in Belgium:
- Independent insurance brokers: these intermediaries sell insurance from several providers in Belgium. They compare price and coverage to determine which insurance best suits an individual's needs;
- Banks: after independent brokers, banks make up the second-biggest market share in the country;
- Insurance companies (e.g., Ethias): these companies sell directly to the consumer, working without intermediaries;
- Insurance companies with exclusive agents (e.g. P&V): working with intermediaries selling only products from one company
- Online players: some companies offer online insurance only.
Consumers must decide on their preferred channel. There are also several websites through which people can compare products, insurers and costs. Insurers are obliged to list what the insurance covers, but also what is not included.
"Some people take out insurance and think they are fully covered. But then years later, they find out they are not covered when filing a claim," Wiels said. "You should only sign the contract and pay if you understand what your insurance covers."
Cancelling insurance
Since the start of October, it has become easier for people to cancel their insurance policies.
Individuals can cancel their contract two months before the one-year anniversary of signing it, or at any point from the second year, provided they inform their insurance provider at least two months in advance.
Sending a letter to terminate a contract is also no longer necessary. Instead, it is possible to cancel it digitally (via Itsme, for example). Consumers can also ask their new insurer to carry out the cancellation on their behalf.
