Fees and charges on your insurance – what are they for?

Why do you pay fees and charges?

When you take out insurance, you pay several statutory fees and charges. Some go to the Danish government, while others help fund compensation schemes and relief funds established by the Danish Parliament.

These charges are similar to Value Added Tax (VAT), which applies to many goods and services. They help fund public initiatives and compensation schemes that benefit society as a whole.

What fees and charges apply?

Different fees and charges apply to different types of insurance. Below is an overview of the most common ones.

Government duty

A government duty of 42.9% applies to the premium for motor vehicle and motorcycle liability insurance.

For moped and EU moped insurance, a fixed government duty of DKK 230 per year applies.

The government duty is included in the price shown before any additional fees and charges are added.

Non-life insurance tax

A tax of 1.1% applies to most non-life insurance policies.

However, it does not apply to compulsory motor liability insurance or other insurance policies already subject to government duty.

Natural hazards levy

A DKK 40 levy per policy applies to insurance policies that include fire cover for buildings or home contents.

This applies to:

• Home Contents Insurance
• Building Insurance
• Holiday Home Insurance

The levy is paid to the Danish Natural Hazards Council.

Environmental levy on older vehicles

Additional environmental charges apply to old and end-of-life vehicles.

These charges are intended to encourage the removal of older vehicles from the roads and help improve road safety.

Who decides the level of these charges?

The Danish Parliament determines both the existence and the level of these fees and charges.

What do these fees and charges cover?

Contributions to compensation and relief funds help create financial reserves that can be used when major losses occur, for example following storms or flooding.

These funds help compensate affected policyholders when large-scale damage occurs.

How do I pay the fees and charges?

You pay most fees and charges in full at the beginning of the insurance period, even if you choose to pay your premium in instalments throughout the year.

Government duty is an exception and is collected together with your instalment payments.

We collect the non-life insurance tax together with your insurance premium.

As a general rule, fees and charges already paid are not refunded if you cancel your insurance or switch to another insurer.

Do I pay any other fees?

IDA Forsikring charges only a limited number of additional fees.

IDA Forsikring membership fee

You pay a small annual membership fee of DKK 50 to be a member of IDA Forsikring.

Guarantee Fund contribution

Building Insurance, Home Contents Insurance, Car Insurance and Motorcycle Insurance include a contribution to the Danish Guarantee Fund.

The annual contribution is:

• DKK 10 for Building Insurance
• DKK 10 for Home Contents Insurance
• DKK 5 for motor liability insurance
• DKK 10 for comprehensive motor insurance

If you have both liability and comprehensive car insurance, the total annual contribution is DKK 15.

Billing fee

A billing fee applies depending on your payment method:

• DKK 9.50 when paying through Betalingsservice (Direct Debit)
• DKK 38.50 when paying by giro payment form

Tryg Medical Helpline

If you use the Tryg Medical Helpline, each online consultation costs DKK 149.

Cancellation fee

A fee may apply if you cancel an insurance policy or if a policy is terminated due to non-payment.

If you cancel during the first year, or the policy is terminated due to non-payment within the first year, the fee is:

DKK 810 plus DKK 74 per policy for Car Insurance, Motorcycle Insurance, Caravan Insurance, Building Insurance, Holiday Home Insurance and Travel Insurance.

For Home Contents Insurance, Pet Insurance, Child Insurance, Personal Insurance, Trailer Insurance and Moped Insurance, the fee is:

• DKK 484 plus DKK 74 per policy.

If you cancel at short notice (current month plus 30 days), or if the policy is terminated due to non-payment after the first year, the fee is:

• DKK 74 per policy.

Reminder fee

If we do not receive payment on time, we will send a reminder.

Each reminder incurs a DKK 100 fee to cover additional administration costs.

Printed correspondence

If you do not receive digital correspondence through e-Boks or My Page, a fee of DKK 82.50 per year per policyholder applies, regardless of how many insurance policies you have.

In special circumstances, you may qualify for an exemption. Please call us on 70 21 01 91 for more information.

You can also log in to My Page and choose to receive digital correspondence.

Environmental contribution

An annual environmental contribution of DKK 84 applies to liability insurance for passenger cars and vans.

The contribution is included in the price shown in our insurance calculator before fees and charges are added.

The contribution helps fund the compensation paid when vehicles are scrapped or recycled at authorised facilities.