Why do I have to pay fees on my insurance?

Why Do You Pay Fees and Taxes?

When you buy insurance, you pay various fees, costs, and taxes. Some go to the Danish state, and others fund relief programs established by the Danish Parliament.

These charges work much like VAT on other goods and services. In short, you contribute to a shared pool that helps cover significant losses and supports society as a whole.

What Fees and Taxes Apply?

When you buy insurance, you pay several fees and taxes. Here’s an overview:

Danish State Tax

The state sets insurance taxes for cars, mopeds, and motorcycles. Rates vary by vehicle type.

Non-Life Insurance

Every non-life policy includes a 1.1% fee, except for statutory liability insurance for vehicles and policies already taxed by the state.

Natural Hazards

The Natural Hazards Council adds a tax to policies covering fire damage for home contents, buildings, and holiday homes.

Emission Charges

End-of-life vehicles are subject to congestion charges to encourage the removal of older cars and enhance traffic flow.

Who Sets the Taxes?

The Danish Parliament sets and adopts all insurance tax rates.

What Do These Taxes Cover?

As a policyholder, you contribute to relief funds that create a compensation pool. This collection covers substantial damage costs from events such as storms and floods.

How Do You Pay the Taxes?

Paying your premiums in instalments doesn’t change the state tax you owe - you pay that tax in one lump sum.

We add the non-life insurance fee to your premium when you pay.

If you decide to cancel your policy or switch to another company, the taxes you have already paid will not be refunded.

Do You Pay Any Other Fees?

At IDA Forsikring, we keep extra fees to a minimum. Here’s what applies:

IDA Membership

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

Guarantee Fund Contributions

You contribute to the Guarantee Fund for building, home contents, car, and motorcycle insurance:

Building and home contents: DKK 10 per year

Car and motorcycle (Liability coverage): DKK 5 per year

Comprehensive coverage: DKK 10 per year

Combined liability and comprehensive: DKK 15 per year

Additional Fees

Collection fee: DKK 9.50 for payment services and DKK 39.50 for paper invoices

Tryg Medical Hotline: DKK 149 per online consultation

Termination Fees

You pay a fee if you cancel your insurance or if it lapses due to non-payment:

Within the first year: Car, motorcycle, caravan, building, holiday home, travel: DKK 810 + DKK 74 per policy

Home contents, pet, child, accident, trailer, moped: DKK 484 + DKK 74 per policy

After the first year or short notice: DKK 74 per policy