What is CRM or Bonus-Malus?

In summary

Aspect	Details
🔍 Definition	The bonus-malus adjusts car insurance prices based on driving history. It is also called the reduction and surcharge coefficient (CRM).
⚙️ Operation	– 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 between 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.
📊 CRM Calculation	– Without responsible accident: CRM decreases by 5% each year (multiplied by 0.95). – With responsible accident: CRM increases by 25% for each claim (multiplied by 1.25).
🔄 Continuity	The CRM is retained even when changing insurance.
⚖️ Rules and limits	– Minimum: 0.5 after 13 years without claims. – Maximum: 3.5, with the possibility of avoiding malus for a first claim after a bonus of 50 for at least 3 years.
🚧 Impact of a non-responsible accident	Non-responsible or partially 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 terminates the insurance contract, but the policyholder retains their CRM for their next vehicle.
🛡️ Insurance for malus-affected drivers	Specialized insurers offer tailored packages for profiles with a malus.

The bonus-malus is the way to adjust the price of a car insurance based on the driving history of an insured person.

It is also called the reduction and surcharge coefficient majoration (CRM).

How does the bonus-malus work?

If an insured person has never had a responsible accident, they benefit from a bonus that allows them to pay less for car insurance cheaper auto insurance.

Conversely, if an insured person has already had an accident, they will incur a malus. In this case, the insurance premium increases, so this system encourages good driving and rewards <strong)cautious drivers.

There is also a bonus-malus for motorcycles and scooters. In some cases, insurers can apply the best bonus-malus for your different vehicles (car and/or two wheels). It is not mandatory to accept, but an insured person will not lose anything and especially has every interest in trying.

Where can you find a bonus-malus?

There are 2 possibilities to find a bonus-malus:

1. If an insured person has just subscribed to their first contract car insurance, their coefficient will be automatically 1.
2. If an insured person has several years of insurance, they can find their CRM on their latest insurance notice or on their information statement. Each insured can request 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 possibilities present themselves to the insured:

• The insured has not had any responsible accidents: the bonus-malus is decreased by 5% each year without responsible claim. Decreasing by 5% means multiplying by 0.95. For example, with an initial premium of 1,000.00€ and a bonus-malus of 1, after the first year you simply 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, multiply the initial premium amount by the new CRM. 1000€ * 0.95 = 950€
• The insured has had one or more accidents: in the event of a responsible claim, the bonus-malus is increased by 25% for each responsible claim reported. The existing bonus-malus is multiplied by 1.25. For example, an insured who had a responsible claim applies a coefficient of 1.25 to their previous bonus-malus: 1 * 1.25 = 1.25, and 1000€ * 1.25 = 1250€. The premium following the accident will be 1,250€.

The insurer recaculates the bonus-malus each year.

There is a principle of continuity, meaning that even when changing car insurance, the insured 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 of the premium. To reach a CRM of 0.5, one must have 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 350% increase 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 beware, this only works once.

Year of insurance	Contribution discount percentage	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

Have you had a non-responsible accident, will you be malus-affected? Will an insured person who suffered a non-responsible claim be malus-affected?

Only accidents in which an insured is responsible or semi-responsible are considered for calculating bonus-malus.

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

The following claims do not impact your bonus-malus:

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

Does selling a car affect my bonus-malus?

If an insured sells or transfers their vehicle, their car insurance contract is terminated. The policyholder retains 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, beware, it will be taken into account in the next contract.

Can a malus-affected driver find insurance?

There are several solutions: first, insurers that have specialized in malus profiles and offer tailored packages. Another article about malus insurance is available on the site.

Practical tips for malus-affected drivers

Options for malus-affected drivers:

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

How to quickly reduce your malus?

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

Differences between bonus-malus in France and other countries

In France, 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 grants reductions for each claim-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 calculations are 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, it is essential to understand the mechanism of the premium. The premium reflects not only the risk level the driver represents to the insurer but also directly influences the annual cost of insurance. Good management of your reduction-surcharge coefficient can lead to more favorable premiums. In this context, it is pertinent to learn about the best practices for insuring your car effectively, 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 keep your bonus at its highest. Also choose insurance that rewards loyalty and good driving. Be sure to regularly compare offers available on the market to ensure you have the most favorable terms. Finally, do not underestimate the importance of carefully reading and understanding your insurance contract, as this can help you avoid unpleasant surprises if a claim occurs.

Specific cases

Secondary drivers

A secondary driver designated on the policy may 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 contract will be negatively impacted.

Corporate vehicles

For company vehicles, bonus-malus is often applied in the company’s name, rather than an individual driver’s. However, if an employee causes a claim, it may increase the costs of the insurance for the entire fleet.

Temporary insurance

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

FAQ about CRM

What criteria are considered for calculating automobile bonus-malus?

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

• Number and severity of responsible claims: a driver involved in multiple responsible claims will see their CRM increase, making their insurance more expensive.
• Insurance history: an accident-free history allows for a bonus to benefit from reduced insurance costs.
• Type of insured vehicle: premiums vary depending on the vehicle type, brand, and horsepower, which directly impact the CRM.
• Driver profile: factors such as age, gender, place of residence, and education level also influence the insurance cost.

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

What happens in case of responsible accident?

A responsible accident has significant consequences on the management of 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 friendly report and the contact details of involved parties.
2. Damage compensation: If the contract includes comprehensive coverage, all damages will be covered. With third-party coverage, only damages to the other party will be reimbursed.
3. Impact on CRM: A responsible accident causes an increase in CRM, which raises the cost of insurance. 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 one contest the bonus-malus?

Yes, it is possible to contest a wrongly calculated CRM. Here is how to proceed:

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

This approach may lead to a correction if your contestation is justified.

Does bonus-malus apply to secondary drivers?

The bonus-malus also applies to secondary drivers named in the insurance contract. Here’s what 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 conditions such as valid driving license is essential to avoid denial of coverage.

These rules vary depending on insurers, so it is 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 annually based on declared or undeclared claims.
• Reduction: A year without claims reduces the coefficient, lowering the insurance premium.
• Increase: A responsible claim causes an increase, penalizing the driver.

This system encourages prudent and respectful driving.

What is the bonus-malus of a young driver?

Young drivers generally start with a high CRM, between 1.5 and 2. This coefficient reflects their lack of experience and higher risk. Here is how they can improve their situation:

• Comparing offers: Some companies offer more advantageous conditions for young drivers.
• Additional training: Accompanied driving or awareness courses can lower the coefficient.

These measures encourage responsible driving from the start of their journey.

Brief overview of CRM calculation

The CRM is recalculated annually and directly affects the insurance premium. Increases are applied in case of responsible claims, while bonuses reward careful drivers. To optimize your CRM, it is advisable to:

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

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