How do you know your bonus-malus?

How do you know your bonus-malus?


When it comes to car insurance, how your bonus-malus works is not always easy to understand. From the calculation method (reduction coefficient plus increase) to its influence on the price of your insurance, various parameters come into play. How does the bonus-malus calculation work? How do you know your bonus-malus? What is the difference in the event of a responsible and non-responsible accident? We help you to understand how the bonus-malus works.

    Auto / motorcycle insurance: what is the bonus-malus?
    Calculation of the bonus-malus: what influence on the price of your car insurance?
    How is the Increase Reduction Coefficient (or bonus-malus) applied?
    How to know your bonus-malus?
    Changing car insurance: the precautions to be taken for the transfer of the bonus-malus

auto malus bonus
Auto / motorcycle insurance: what is the bonus-malus?

The bonus-malus takes the form of a coefficient rewarding or penalizing the driver according to his behavior at the wheel or on the handlebars. Imposed by Articles A121-1 to A121-2 of the Insurance Code, it determines the amount of the auto insurance premium paid by the policyholder. This is why it is recalculated each year according to regulated criteria. It takes as a reference the period of 12 consecutive months preceding by 2 months the annual expiry of the contract. If the latter occurs on December 31, 2019, for example, the bonus-malus will take into account claims or the absence of claims from October 2018 to October 2019.

Note: the bonus-malus system concerns land motor vehicles. However, there are several exclusions, including 2 or 3 wheels up to 125cm3, carts without a license, as well as collector's models (over 30 years old).
Calculation of the bonus-malus: what influence on the price of your car insurance?

When taking out the auto insurance contract, the bonus-malus coefficient is always set at 1.00. Each year, the insurer adjusts the coefficient according to the claims or the absence of claims of the insured over the observation period:

    In the event of good behavior, the coefficient is reduced by 5%. The insured will therefore only pay 95% of the total amount invoiced in the previous year to cover his vehicle. For a reference contribution of 1000 euros, the driver will then have to pay in N + 1 an invoice of 950 euros. If no loss is noted in N + 2, the amount of his car insurance will be 902.5 euros.
    Otherwise, a 25% increase will be applied to the rate for each claim. The amount of auto insurance will then be increased to 1250 euros in N + 1, to 1562.5 euros in N + 2. If the insured is found only partially responsible for the accident, the coefficient is only increased by 12.5%.

French law sets the limits for the bonus-malus coefficient between 0.50 and 3.50.

Note: whatever the coefficient applied above 1.00, the penalty returns to 1.00 after two years without loss. Moreover, if the insured has a coefficient of 0.50 for at least 3 years, the first responsible accident does not cause him to lose his bonus.
How is the Increase Reduction Coefficient (or bonus-malus) applied?

The mechanism of the Coefficient of Reduction Increase (CRM) - this is its official name - is as follows:

    Drivers who have not caused any traffic accident in which their responsibility is engaged (totally or partially) during the observation period will be rewarded with a bonus.
    Drivers responsible for road accidents will be given a penalty.

Information relating to the bonus-malus appears on the information statements or the due date notices communicated by the insurer.

Note: some claims do not give rise to a penalty, such as non-responsible accidents, parking accidents without an identified third party, theft, fires, and broken windows.
How to know your bonus-malus?

Information relating to the bonus-malus can be found on:

    the expiry notices communicated by the insurer each year. On this document, you will find the amount of the premium, the details of your contract as well as your bonus penalty coefficient.
    the information statements that you can request from your insurer the rest of the year. This legal document will mention the responsible accidents, the date of subscription of the contract, the claims as well as the bonus-malus.

Changing car insurance: the precautions to be taken for the transfer of the bonus-malus

The bonus-penalty coefficient is transferable. This means that in the event of a change of insurance company, all information relating to the insured and his vehicle is communicated to the new insurer. The reference contribution