What is CRM or Bonus-malus?

In summary

Aspect	Details
🔍 Definition	The bonus-malus adjusts the price of car insurance based on driving history. It is also called the reduction or surcharge coefficient (CRM).
⚙️ How it works	– Bonus: Lowers the insurance premium for drivers with no responsible accidents. – Malus: Increases the insurance premium for drivers who have had an accident.
🚗 Application	Applicable to cars, motorcycles, and scooters. It is possible to apply the best bonus-malus across different vehicles.
🗂️ Finding your CRM	– New policyholders start with a CRM of 1. – CRM visible on the latest renewal notice or on the information statement.
📊 Calculating the CRM	– Without responsible accidents: CRM decreases by 5% each year (multiplied by 0.95). – With responsible accident: CRM increases by 25% per claim (multiplied by 1.25).
🔄 Continuity	The CRM is maintained even when changing insurance providers.
⚖️ Rules and limits	– Minimum: 0.5 after 13 years without claims. – Maximum: 3.5, with the possibility of not being penalized for a first claim after a bonus of 50 for at least 3 years.
🚧 Impact of a non-responsible accident	Non-responsible or partly responsible accidents do not impact the bonus-malus in the same way as fully responsible accidents.
🔑 Vehicle sale	The sale or transfer of a vehicle interrupts the insurance contract, but the policyholder retains their CRM for their next vehicle.
🛡️ Insurance for malus drivers	Specialized insurers offer tailored policies for drivers with a malus.

The bonus-malus is a way to adjust the cost of a car insurance based on a policyholder’s driving record.

It is also called reduction coefficient surcharge (CRM).

How does the bonus-malus system work?

If a policyholder has never had a responsible accident, they benefit from a bonus allowing them to pay less for auto insurance cheaper car insurance.

Conversely, if a policyholder has already had an accident, they will face a malus. In this case, the insurance premium increases. This system thus encourages good driving and rewards prudent drivers.

There is also a bonus-malus for motorcycles and scooters. In some cases, insurers can apply the best bonus-malus across your various vehicles (car or/or two wheels). It is not compulsory to accept, but a policyholder will not lose anything and will especially have every interest in trying.

Where do we find a bonus-malus?

There are 2 options to find a bonus-malus:

1. If a policyholder has just taken out their first policy auto insurance, their coefficient will automatically be 1.
2. If a policyholder has several years of insurance, they can find their CRM on their last renewal notice or on their information statement. Each policyholder can ask their insurer for their information statement.

During a change of insurance, the CRM will determine the amount of the new premium.

How is the bonus-malus calculated?

At the end of the first year of insurance, two options are available to the policyholder:

• The policyholder has not had a responsible accident: the bonus-malus is decreased by 5% each year without a responsible claim. Decreasing by 5% means multiplying by 0.95. For example, starting with an initial premium of €1000.00 with a bonus-malus of 1. After the first year, you need to multiply the initial bonus-malus (which is 1) by 0.95, so 1 * 0.95 = 0.95. The bonus-malus after one year without a responsible claim will be 0.95. To calculate the new premium, you then multiply the initial premium price by the new CRM. €1000 * 0.95 = €950.
• The policyholder has had one or more accidents: during a responsible claim, the bonus-malus is increased by 25% for each responsible claim reported. The old bonus-malus is multiplied by 1.25. For example, a policyholder who had a responsible claim, then we apply a coefficient of 1.25 to their old bonus-malus: 1 * 1.25 = 1.25, and €1000 * 1.25 = €1250. The premium following the accident will be €1250.

The insurer recalculates the bonus-malus annually.

There is a principle of continuity, meaning that even when changing auto insurance the policyholder will keep their CRM.

Policyholders with a bonus cannot lose it

What are the rules and limits of the bonus-malus?

The bonus-malus can range from 0.5 to 3.5.

This means it cannot be less than 0.5, which is a 50% reduction in the premium. To reach a CRM of 0.5, it takes 13 years of driving without claims.

At the malus level, a policyholder cannot have a bonus-malus higher than 3.5, which corresponds to a increase of 350% in the insurance premium.

If a policyholder has a bonus of 50 for at least 3 years and has a responsible claim, they will not be penalized with a malus. But be aware that this only works once.

Years of Insurance	Percentage discount on contribution	CRM equivalence
0	0%	1.00
1	5%	0.95
2	10%	0.90
3	15%	0.85
4	20%	0.80
5	24%	0.76
6	28%	0.72
7	32%	0.68
8	36%	0.64
9	40%	0.60
10	43%	0.57
11	46%	0.54
12	49%	0.51
13	50%	0.50

I had a non-responsible accident, will I be penalized with a malus? Will a policyholder who has experienced a non-responsible claim be penalized?

Only accidents where a policyholder is responsible or semi-responsible are considered for calculating a bonus-malus.

The calculation is proportional according to the degree of responsibility. There will be a 25% surcharge for full responsibility and 12.5% for partial responsibility.

The following claims do not impact your bonus-malus:

• parking accidents without an identified third party
• thefts
• fires
• glass breakage

Does selling a car affect my bonus-malus?

If a policyholder sells or transfers their vehicle, their auto insurance contract is interrupted. The policyholder keeps the same CRM for their next vehicle.

If the interruption or suspension of the contract exceeds 3 months, no bonus can be applied. However, if the policyholder incurs a malus, be aware that it will be taken into account in the next contract.

Can a malus driver find insurance?

There are several solutions: firstly, some insurers specialize in malus profiles and offer tailored policies. Another article about malus insurance is available on the site.

Practical tips for malus drivers

Options for malus drivers:

• Specialized insurers: Some companies focus on malus profiles, with slightly higher premiums but adapted.
• Supervised driving: Using telematics devices can demonstrate driving improvement and gradually reduce the CRM.

How to quickly reduce your malus?

• Participate in a road safety awareness course.
• Subscribe to a temporary or less expensive insurance to reduce costs until the CRM improves.

Differences between bonus-malus in France and other countries

In France, the bonus-malus is based on a coefficient ranging from 0.5 to 3.5, but this system is not universal:

• United Kingdom: The “no-claims discount” system provides discounts for each accident-free year, but insurers may impose different limits.
• Germany: Insurance premiums depend heavily on age and vehicle type, with bonuses that can last a lifetime.
• United States: Premium calculation is more based on the driver’s credit history and driving record.

These comparisons show that the French system is relatively strict but standardized.

The impact of the premium on auto insurance

When choosing insurance for your vehicle, you first need to understand the mechanism of the premium. The premium reflects not only the level of risk the driver poses to the insurer but also directly affects the annual cost of insurance. Good management of your reduction or surcharge coefficient can lead to a more favorable premium. In this context, it is relevant to learn about best practices for efficiently insuring your car, while saving money and obtaining adequate coverage. Auto insurance premiums are calculated based on many criteria, including the driver’s age, driving history, vehicle type, and of course, the bonus-malus coefficient.

Strategies to optimize your bonus-malus

Improving your bonus-malus coefficient will require effort, but with the right strategies, you can benefit from preferential rates on your auto insurance. Careful and incident-free driving is the best way to maintain your bonus at its highest. Also, choose an insurer that rewards loyalty and good driving. Be sure to compare offers regularly available on the market to ensure you have the most favorable conditions. Finally, do not underestimate the importance of thoroughly reading and understanding your insurance contract terms, as this can prevent unpleasant surprises when a claim occurs.

Specific cases

Secondary drivers

A secondary driver designated on the policy can share the consequences of the bonus-malus with the main driver. For example, if a secondary driver causes a responsible accident, the CRM of the policy will be negatively affected.

Corporate vehicles

For corporate vehicles, bonus-malus is often applied in the name of the company, not an individual driver. However, if an employee causes an accident, it can increase costs for the entire fleet.

Temporary insurance

Temporary insurances, often used for borrowed or rented vehicles, generally do not affect the bonus-malus of the policyholder, as they are independent of their main contract.

FAQ about the CRM

What criteria are considered in calculating automotive bonus-malus?

The automotive bonus-malus is a pricing system that encourages drivers to adopt a responsible driving style. It is calculated based on several key criteria:

• Number and severity of responsible claims: a driver involved in many responsible claims will see their CRM increase, making their insurance more expensive.
• Insurance history: a clean history without responsible claims allows for a bonus and reduces insurance costs.
• Type of insured vehicle: premiums vary depending on the vehicle type, make, and power, which directly impact the CRM.
• Driver profile: factors such as age, gender, residence, or education level also influence insurance costs.

The methods for calculating bonus-malus can vary depending on the insurers and regulations. It is recommended to inquire with your insurer for detailed information.

What happens in case of a responsible accident?

A responsible accident has significant consequences on managing your insurance contract. Here are the main steps:

1. Quick declaration: The driver must report the accident to their insurer by providing essential documents such as the amicable report and the contact details of involved parties.
2. Compensation for damages: If the policy includes comprehensive coverage, all damages will be covered. With third-party coverage, only damages to the other party will be covered.
3. Impact on CRM: A responsible accident increases the CRM, which raises the insurance cost. In case of serious or repeated claims, the insurer may refuse contract renewal.

It is essential to understand the implications in terms of responsibility and compensation to avoid unpleasant surprises.

Can I contest the bonus-malus system?

Yes, it is possible to dispute an incorrectly calculated CRM. Here’s how to proceed:

1. Review supporting documents: Check your information statement and identify any errors in calculation.
2. Contact your insurer: Send a written request explaining your reasons for contesting, along with necessary evidence.
3. Appeal to a mediator: If disagreements persist, you can contact a free and independent mediation commission.

This process may lead to a correction if your dispute is justified.

Does the bonus-malus apply to secondary drivers?

The bonus-malus also applies to secondary drivers designated in the insurance policy. Here’s what you need to know:

• Mandatory designation: The secondary driver must be clearly mentioned in the contract for claims to be covered.
• Impact of claims: Any responsible accident caused by the secondary driver increases the CRM, leading to higher premiums.
• Contract conditions: Respecting the conditions, such as valid license, is essential to avoid rejection of indemnity.

These rules vary depending on insurers, so it’s important to carefully read your contract.

How is the bonus-malus calculated?

The bonus-malus relies on a coefficient system that evolves based on the driver’s history:

• Initial calculation: The CRM starts at 1 and is adjusted each year based on reported or unreported claims.
• Reduction: A claim-free year reduces the coefficient, thus lowering premiums.
• Increase: A responsible claim causes an increase, penalizing the driver.

This system encourages responsible and cautious driving.

What is the bonus-malus for a young driver?

Young drivers usually start with a high CRM, ranging from 1.5 to 2. This coefficient reflects their lack of experience and higher risk. They can improve their situation by:

• Comparing offers: Some companies offer more favorable conditions for young drivers.
• Additional training: Assisted driving or awareness courses can reduce the coefficient.

These measures encourage responsible driving early in their journey.

Brief overview of CRM calculation

The CRM is recalculated annually and directly impacts the insurance premium. Increases occur after responsible claims, while bonuses reward cautious drivers. To optimize your CRM:

• Avoid responsible claims;
• Compare insurers to find the best offers;
• Subscribe to suitable coverage for your profile.

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