One thing is certain, the concept of bonus-malus must be known in relation to car insurance. If the bonus is quite good financial news for the insured, the penalties can be problematic because they lead to an increase in the contribution.
Car insurance: bonus-malus, what exactly is it?
Bonus-malus is a system of annual graduation of the insurance premium according to the behavior of the insured driver and the claims involving his liability.
No disaster? The basic premium is reduced, you pay less for your insurance. One or more requirements? The basic premium is increased: you pay a higher rate. Bonus-malus is, as you will have understood, a system of rewards and punishment. The coefficient is between 0.50 and 3.50 maximum, and the calculation is updated every year.
If you change insurance, your bonus-malus coefficient is transferred. Don’t imagine escaping your reckless driving history! And this can even justify a refusal of car insurance.
What is the reduction for an accident-free insurance year?
If you do not register any compensation claim during a year, the coefficient is reduced by 0.5%. To calculate the coefficient for the year, multiply the previous one by 0.95. Each year, the bonuses can accumulate up to a maximum coefficient of 0.50 if you are accident-free for 13 years.
What bonus after 1 year of insurance?
Taking out car insurance for a year is equivalent to benefiting from a bonus-malus coefficient of 1.00. At the end of the first year, if you have not been responsible for any damage, you will receive a 5% reduction in the annual price of your car insurance. Your bonus malus will therefore go from 1.00 to 0.95.
Be careful not to confuse this with the young driver car insurance premium system used by most insurance companies. Even if a young driver is very careful, attentive and respects the code, there is actually a higher probability of a higher accident rate due to his lack of driving experience.
The amount of the supplement for young drivers is regulated and cannot exceed 100% of the insurance’s reference rate for the first year. This rate is then capped at 50% in the second year, then 25% in the third year.
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What car insurance bonus after 2 years?
It should be noted that the number of years without damage affects the bonus on your car insurance, here are the coefficients and the reduction
- After two years without an at-fault accident, the reduction-increase coefficient is 0.90. 10% discount.
- After 3 years without an at-fault accident, the additional reduction coefficient is 0.85%, the reduction 15%.
What is the maximum automatic bonus?
The maximum car insurance bonus is 50% and corresponds to a period of 13 consecutive years without a fault. If your vehicle does not encounter any damage, you can acquire what is called the 50 bonus, a commercial concept that indicates the most advantageous coefficient found in car insurance. Some insurance companies award it for life: a good way for them to retain policyholders.
Regarding the car penalty, it cannot exceed 350% of the basic rates in the insurance contracts, regardless of the number of accidents and your share of responsibility. It is better to choose insurance adapted to malussed profiles, who generally pay very expensively every month to be insured.