The world of car insurance in France is governed by complex but essential mechanisms that determine the amount of your insurance premium. Among these mechanisms, the bonus-malus system stands out for its importance. Here's a guide to how it works, how it affects car insurance premiums, and how drivers can make the most of this system.
1. What is the demerit system?
The bonus-malus system, often referred to as a reduction coefficient (CRM), is a system that rewards or penalizes drivers based on their driving history. If you don't have an at-fault accident for a year, you get a bonus that reduces your insurance premium. Conversely, if you are responsible for an accident, a penalty is applied that increases your premium.
2. How does the bonus-malus affect the insurance premiums?
The initial coefficient is generally 1. For each year without an accident, this coefficient is reduced by 5%, which in turn reduces your insurance premium. Thus, after several years without an accident, your coefficient can reach 0.50, a 50% reduction in your initial premium.
On the other hand, in the event of an accident, the coefficient is increased. The amount of this increase depends on the severity of the accident and your responsibility for it.
3. Pitfalls to avoid
Not reporting an accident: Some people may be tempted not to report a minor accident to avoid a premium increase. It's a trap! Apart from the fact that it could be considered fraud, it could also complicate matters if the other party decides to report the accident at a later date.
Change insurers frequently: If you change insurers frequently to avoid a penalty, be aware that your new insurer will have access to your insurance history. What's more, frequent changes can be seen as a sign of instability, which could affect your future premiums.
4. How can you optimize your situation?
Drive carefully: The best way to maximize your bonus is to drive safely and obey traffic laws.
Avoid small claims: For minor incidents, it may be wiser to pay for repairs rather than file a claim.
Ask about collision repair courses: Some insurers offer premium discounts or the opportunity to reclaim bonus points for drivers who take safe driving courses.
In conclusion, the demerit point system plays an important role in determining your car insurance premium in France. By understanding how it works and adopting a cautious driving style, you can not only protect your wallet, but also contribute to a safer road environment for everyone.