Why do I have to pay fees on my insurance?

Why do you pay fees and taxes?

When you purchase insurance, you are required to pay various fees, costs, and taxes. Some of these expenses go to the Danish state, and the Danish Parliament established multiple relief funds.

These payments are similar to the VAT you pay for all other goods and services.

Essentially, you are contributing to a large treasury that is intended to benefit society as a whole.

What fees and taxes are there?

For your insurance, you pay different fees and taxes. You can get an overview of them here.

Danish state tax

Insurance taxes for cars, mopeds, and motorcycles vary based on the type set by the state.

Non-life insurance

All non-life insurance policies incur a fee of 1.1% of the price, except for statutory liability insurance for vehicles and other insurance already subject to state tax.

Natural hazards

The Natural Hazards Council charges a tax for natural damage for insurance policies covering fire damage to home contents and buildings. This tax applies to home contents, building, and holiday home insurance.

Emission charges on old cars

Congestion charges are also levied on end-of-life cars. These costs have been implemented to eliminate old vehicles from the roads for safer traffic flow.

Who determines the amount of taxes?

The Danish Parliament is responsible for adopting and setting various tax sizes.

What do the taxes cover?

Taxes for relief funds mean paying money into a compensation pool as a policyholder. This pool covers the costs if significant damage occurs, such as after storms and floods.

How do I pay the taxes?

Regarding insurance, paying your premiums multiple times throughout the year does not affect the state tax you owe. The tax is to be paid in one lump sum.

We collect your non-life insurance fee along with your premium.

If you terminate your insurance policy or switch to a different company, any taxes already paid will not be refunded.

Do I pay any other fees?

At IDA Forsikring, you pay too few other fees.

IDA membership

To become a member of IDA Forsikring, you pay a small fee, DKK 50, which we charge once a year.

Guarantee Fund contributions

You must contribute to the Guarantee Fund for building, home contents, car, and motorcycle insurance. The contribution is DKK 10 per year for building and home contents insurance. For car and motorcycle insurance, the contribution is DKK 5 for liability coverage and DKK 10 for comprehensive coverage. If you have insurance with combined liability and comprehensive coverage, the amount will be DKK 15. The amounts are per year.

Additional fee

You are charged a collection fee of DKK 9.50 for payment services and DKK 39.50 for paper invoices.

Tryg Medical Hotline

If you use Tryg's Medical Hotline, the cost is DKK 149 per online consultation. 

Termination fee

You may incur a fee if you cancel an insurance policy or terminate the insurance due to non-payment.

If you choose to terminate your insurance or if we cancel it due to non-payment within the first year, the fee will be DKK 810 plus DKK 74 per car, motorcycle, caravan, building, holiday home, and travel insurance.

If you terminate your insurance or it lapses due to non-payment within the first year, the fee will be DKK 484 plus DKK 74 per home contents, pet, child, accident, trailer, and moped insurance.

If you decide to terminate your insurance on short notice (within the current month plus 30 days), or if it lapses due to non-payment after the first year, the fee will be DKK 74 per insurance.