How to calculate the auto penalty?

 How to calculate the auto penalty?

When you cause an accident, your CRM will be impacted by a penalty:

    you caused an accident and are totally responsible: you have a penalty and therefore an increase in the coefficient of 25%;
    you caused an accident but are only partially responsible: you have a penalty and therefore an increase in the coefficient of 12.5%.

    Example of an increase in the bonus malus for a responsible accident:

    Your starting coefficient is 1. You therefore have a responsible claim to your credit. Your penalty bonus will therefore be 1.25 (1 + 25% = 1.25). If you are responsible for a second claim, you take this coefficient of 1.25 and multiply it by a penalty of 25%, i.e. 1.56 (1.25 + 25%).

    Imagine that your referral premium is set at € 800, it will then be increased by 56% or € 1,248.

To better understand the method of calculation, here is a summary table of the penalty:
Responsible accident Calculation of the Malus coefficient Increase in the premium
1st responsible accident 1 + 25% 1.25 25%
2nd 1.25 + 25% 1.56 56%
3rd 1.56 + 25% 1.95 95%
4th 1.95 + 25% 2.44 144%
5th 2.44 + 25% 3.05 205%
6th 3.05 + 25% 3.81 with cap at 3.50 250%
Calculation of the penalty

The penalty is capped from the 6th responsible accident. Thus, your auto insurance premium can never be increased by more than 250%.

After two consecutive years without a responsible claim, your bonus malus goes back to 1. This is called the rapid descent.
In which cases can my bonus malus be increased?

In addition to the penalty which is determined according to the number of responsible accidents, other events may increase the cost of your premium, this is called the surcharges.

Here is a non-exhaustive list of possible increases:

    Responsible for at least 3 claims during a year: + 50%;
    False declaration when taking out the contract: + 100%;
    Hit and run after a disaster: + 100%;
    License suspension for more than 6 months: + 100%;
    Responsible accident under the influence of alcohol: + 150%;
    Cancellation of driving license: 200%.

    Thus, if your driver's license is canceled and your auto insurance premium is € 700, your contract will then increase to € 2,100 (700 + 200%).