There has been a steep rise in the cost of car insurance in the Netherlands. According to the consumer oganisation website Independer.nl, an average car owner now pays 50 euros more for motor insurance than they would have done a year ago. This is an increase of 10 percent.
 

In recent years insurance companies slashed their prices due to increased competition. As a result, profit margins on motor insurance had become minimal, and in some cases companies were actually making a loss.

Independer.nl and insurance company Nationale Nederlanden say that premiums have now bottomed out, ANP reports. Insurers are no longer giving big discounts to new customers and premiums for existing customers are rising. Despite the recession, relatively few people appear to be switching to cheaper insurance companies.