What is this nice Bonus-Malus ratio?
The bonus-malus ratio is a ratio that varies depending on whether or not you have insurance payments due to your fault throughout your insurance history.
It is often referred to as the accident-free discount.
The essence of this coefficient is to make an incentive gift for the client of the insurance company in case of accident-free driving. After all, driving safely is a huge responsibility. However, if a person has already been in an accident through his own fault, and a payment has been made to him, then the bonus-malus will significantly increase the cost of insurance. Accordingly, the more accidents, the more the coefficient increases.
Here is an example of calculating the coefficient for accident-free driving:
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1 year - factor 1
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Year 2 - coefficient 0.95
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3 year - coefficient 0.9
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4 year - coefficient 0.85
In other words, each year of accident-free driving will save you 5% on the cost of the policy annually.
It is important to note that this coefficient is not applied when applying for a policy in 2023.
But in order not to be guilty in an accident, it is enough to know the rules of the road and simply follow them. Remember - you are the master of your life. Your life is in your hands!