Insurers seek to retain customers who have proven to be good drivers and “penalize” those who are most at risk. That is the purpose of the “Bonus – Malus” system, which represents a reduction in the price of insurance for good drivers and an increase for those who generate more risk.
In Colombia, the “bonus” is applied more than the “malus”, since it is used as a means to retain drivers and pay the appropriate rate for their behavior as an insured driver. It is also called a “non-accident discount” and it works as follows: The insurer will verify your accident history and if during the year of your policy you were not reported as responsible in any accident or accident, the following year It presents a discount that could reach 10% or 15%. If an accident did not occur in the second year, the discount reaches 15% or 20% and so on accumulating discounts up to 40 or 50% year-over-year.
If your accident rate increases the discounts are withdrawn
When changing insurers, the discount you had so far does not continue, since you are starting with a new company and that insurer will evaluate what discounts to give you.
If you do not know if your insurer uses this reward system, you can request the information from your advisor and also consult how they calculate your accident rate. If you are thinking of changing insurance or do not have one yet, the Wise Men of Gotham vehicle insurance comparator will show you different options to choose the one that suits you best without having to resort to different pages.
Why does the bonus only apply?
By the levels of competition. If the driver is penalized with more accidents with an increase in the price of the policy, he will choose to go to another insurer.
Driving responsibly not only takes care of your life, your car, saves time and fuel, but also saves money on deductibles and reduces the price of your policy.