Bonus-Malus System
A European statutory rating system that lowers car insurance premiums for safe drivers (bonus) and increases them for at-fault accidents (malus).
Actuarial & Contractual Mechanics
The Bonus-Malus System is the statutory actuarial framework governing auto liability insurance across continental Europe (including France, Germany, Italy, Spain, and Belgium). Under Bonus-Malus regulations, every driver begins with a neutral coefficient multiplier of 1.00. For each consecutive calendar year completed without an at-fault accident, the driver receives a statutory 'bonus' reduction (typically a 5% discount, reducing the multiplier to 0.95, 0.90, down to a maximum statutory discount floor of 0.50). Conversely, each at-fault accident triggers a severe 'malus' penalty (typically multiplying the rate by 1.25, raising the premium by 25% up to a maximum penalty ceiling of 3.50).
In France, a driver with a base premium of €800 maintains a clean record for 13 years, reaching the maximum legal bonus coefficient of 0.50 and paying just €400 per year. After causing an intersection crash, their coefficient increases by 25% to 0.62, increasing their next annual insurance bill to €496.
In European countries with centralized state-regulated Bonus-Malus registers, your coefficient is tied directly to your national driving license and follows you across all insurance carriers, meaning you cannot wipe away a malus surcharge by simply switching companies.
Frequently Asked Questions About Bonus-Malus System
Clear definitions, policy implications, and related coverage calculators.