Having a high malus can be annoying, but it doesn't have to be. The most important thing is to be aware of its effects, so that you don't pay an exorbitant price for your car insurance. The malus clause is a system for reducing and increasing the insurance premium at each annual renewal date. The basic premium is reduced according to the number of claims-free years or increased according to the number of claims recorded.
First of all, what is the malus system?
Also known as the reduction-malus system, the malus system is a weighting method used by car insurers to assess risk based on the number of claims recorded. Clearly defined by the Insurance Code, the bonus-malus system only applies to vehicles over 80 cm3. As a result, a policyholder is credited with 5% in bonuses for each year of insurance without having had an at-fault accident, and a 25% penalty for each at-fault accident. Your contributions are then automatically increased in the event of a claim. If the malus is too high, an insurer can legally terminate your insurance contract. In this case, the best option would be to take out malus insurance.
How does it work?
The bonus-malus system takes as its reference the period of 12 consecutive months preceding 2 months of the policy's annual expiry date. For example, we take into account a claims policy running from October to October for a policy with an annual expiry date of 31 December.
It has to be said that the operating rule of the bonus-malus system is binding on insurers. However, it must be said that the reference premium is determined by the insurer, and each insurer has its own reference premium that applies.
It has to be said that the bonus-malus system applies to land-based motor vehicles. However, certain vehicles are excluded, notably two-wheelers, public service vehicles (fire brigade, ambulance, etc.), vintage vehicles (over 30 years old), agricultural vehicles and forestry and public works equipment.
The claims taken into account in the calculation of the no-claims bonus are those for which the policyholder bears some responsibility.
Please note that certain claims are excluded, including accidents, theft, fire and glass breakage.
What is the calculation method?
Vehicle insurance premiums are often calculated on the basis of a bonus-malus system. This calculation system takes into account accidents reported by the driver. The starting coefficient is often 1.
As far as bonuses are concerned, for each year that passes without a declared accident, the driver benefits from a reduction of 5% in his coefficient for the previous year. Simply multiply the previous year's coefficient by 0.95 to obtain the coefficient for the year. By default, the coefficient is rounded to two decimal places. Note that the maximum reduction in the coefficient is set at 50%. Beyond that, the coefficient will not change.
For the malus, for each at-fault accident, a surcharge of 25% is applied. To determine the resulting coefficient, we simply take the pre-accident coefficient and multiply it by 1.25.
For example, if you have a coefficient of 0.68, the 1er accident will result in a new coefficient: 0.68×1.25= 0.85.
If you have a second accident in the same year, your coefficient will increase from 0.85×1.25= 1.06.
Note that the maximum coefficient is set at 3.5. Therefore, for a reference premium of 1000 euros, the policyholder with a coefficient of 3.5 will pay a premium of 3500 euros.
What happens at the end of the contract?
At the end of the insurance contract, you will keep your bonus-malus. It will be automatically transferred if you change vehicle or insurer, or if you buy an additional vehicle (provided there is no new regular driver).
Each year, when your insurance contract expires, your insurer will issue you with a statement of information containing all the information on any claims made during the 5 annual periods. You can also ask your insurer for this statement outside the expiry date.
If you want to change insurers, this statement will be essential. If you sell your vehicle and do not buy another immediately, your contract will be terminated. If the interruption is less than 3 months and you have not had any claims, you should consider increasing your bonus.
Drivers with a bad driving record: it's harder to change insurance
For a driver with a bad record, it is more difficult to change insurance and try to get a better price. It's even more difficult for young drivers who have just had an accident and want to change insurance after the incident. Note that the increase in your deductible will be the same for a minor accident as for a more serious one. It is this coefficient that your future insurer will look at. If it turns out to be fairly high, you'll have to pay more. However, this should not prevent you from taking out insurance, as failure to do so is punishable by law.
Compare insurers specialising in accident victims
Faced with a growing number of drivers with a bad driving record, the number of insurers offering suitable insurance packages is increasing all the time. Combining basic cover with affordable prices, these packages can be adapted to suit the profile of the insured. It is important to know that bad-coupled drivers do not present the same level of risk when the starting coefficient is 1.25.
To better identify these specialist insurers, policyholders can turn to online insurance comparators. On our site, you can obtain a personalised quote from the main insurers in the sector to compare offers. This enables policyholders to choose the insurance company best suited to cover their vehicle.
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