Car Insurance Bonus-Malus System

What Is Bonus-Malus?

Bonus-malus, officially called the Reduction-Increase Coefficient (CRM in French), is a system that varies your car insurance premium based on your claims history. The fewer at-fault claims you have, the less you pay. For more on insurance in France, explore our complete guides.

The Basic Principle

You start with a coefficient of 1. Each year without an at-fault claim, your coefficient decreases by 5%. Each at-fault claim increases your coefficient by 25%.

Why This System?

Bonus-malus aims to make drivers more responsible and charge more to those who have more accidents. It's a principle of fairness among policyholders.

Calculating the Coefficient

Reduction for Good Driving (Bonus)

Each year without an at-fault claim, your coefficient is multiplied by 0.95 (-5%). The maximum bonus is 0.50 (50% reduction), reached after 13 claim-free years.

Increase After a Claim (Malus)

For an at-fault claim, the coefficient is multiplied by 1.25 (+25%). The maximum malus is capped at 3.50 (your premium can be three and a half times higher).

Partially At-Fault Claims

If you're 50% responsible, the coefficient is multiplied by 1.125 (average between no claim and full claim).

Claims That Don't Count

Non-At-Fault Claims

An accident where you're not responsible doesn't affect your bonus-malus. The responsible party's insurance pays compensation.

Certain Events

Theft, fire, glass breakage, natural disasters, and parking accidents without identified third parties generally don't affect the CRM.

Direct Compensation

Even if your insurer compensates you directly (IRSA convention), they then recover from the responsible party's insurer. Your bonus isn't affected.

The Information Statement

What Is It?

It's the document summarizing your car insurance history: current coefficient, claims over the last 5 years, license age.

How to Obtain It?

Your insurer must provide it upon request and mandatory at contract end. It's essential for changing insurers while keeping your bonus.

What It Contains

The statement specifies the reference date, the applied coefficient, and details of claims with dates and responsibilities.

Bonus Transfer

Between Vehicles

Your bonus is attached to you, not the vehicle. When you change cars, you keep your coefficient.

Between Insurers

When you change insurers, your new contract takes the coefficient stated on the information statement.

After an Interruption

If you haven't been insured for more than 2 years, you start again at coefficient 1. Previous bonus is lost.

Special Cases

Young Driver

You start at 1 and can accumulate bonus from the first year. Some insurers apply a separate "young driver" surcharge distinct from the CRM.

Secondary Driver

The secondary driver doesn't accumulate bonus on the contract. If they become a primary driver elsewhere, they start at 1.

Company Fleet

Company vehicles may have different bonus-malus, calculated across the entire fleet.

Tips for Preserving Your Bonus

Declare Third-Party Claims

If a third party is identified as responsible, make sure the insurer has noted it correctly to avoid unjustified malus.

Pay for Small Claims

For minor damage where you're responsible, it may be economically better not to declare and pay yourself, to preserve your bonus.

Check Your Statement

Each year, verify that the coefficient and claims listed are correct. Errors happen.

Conclusion

Bonus-malus is a simple system but has a significant impact on your car insurance premium. Driving carefully for 13 years can halve your premium. Conversely, a few at-fault claims can make it skyrocket.

The information provided in this article is for informational purposes only. Consult your insurance contract for exact conditions.