What is an insurance bonus class and how does it work?

What is an insurance bonus class and how does it work?

Who doesn’t love bonuses? It gets even better when these discounts are awarded against purchases in car insurance, an item that is fast becoming a necessity nowadays to remain safe and at peace throughout the year for people who own cars.

But what is the bonus class? When does it come into effect? ​​What can one do to get discounts on one’s next policy renewal? Find the answers below to these and other questions, and learn more about this possibility.

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What is the bonus class?

To put an end to any doubts and curiosity about the subject, it is important to explain what the bonus class is. In short, we are talking about an insurance experience indicator, an additional feature, which can grant discounts on the final amount that you pay annually.

This therefore, means that in case you have not involved yourself in an accident in a past period then you have the right to a point when renewing your contract and this is referred to as bonus class. Otherwise, it is a simple bonus for those drivers who never make an insurance claim within a year.

How does this bonus work?

The way this bonus class works is very simple. Each year not having had any kind of accident, one point is given, and with time, this bonus increases, always getting larger to have a greater discount when renewing.

Here, the idea is to further incentivize this cautious driver who does not get involved in accidents and hence does not make any claim against his or her insurance. After all, he should get a bonus on the contract since he does not cost anything to the insurer.

In addition, it needs to be pointed out that such points are not transferable. Non-transferability of the points is, therefore, interpreted to mean you cannot use someone else’s and neither will yours be transferred to a third party.

What occurs to the bonus in the event that you switch insurance providers?

If you have always been a careful driver and have not made a claim on your insurance for five years, you will have accumulated an interesting bonus class. However, imagine that you are dissatisfied with your insurance company and want to hire another company in the market.

You are undoubtedly concerned in this situation and wonder if you will lose all of your points. The good news is that it won’t take place!

Even if you change insurance companies upon renewal, your points will be maintained and the bonus class will not change — all insurance companies recognize the bonuses you have accumulated and this validation is carried out by a Bonus Center.

In what situation can you lose the bonus?

In addition to all the information presented, it is important that you understand how the calculation for loss of bonus is done.

As a rule, every time you make a claim on your insurance, you lose one point. So, if you have six accumulated points, but during the year you were involved in an accident and then had your car stolen, you will lose two points, since you made a claim on your insurance twice.

This way, your bonus class, which was 6, will become 4. Simple and transparent, right?

What situations do not result in loss of points?

A common question about the bonus class is whether each and every insurance claim results in the loss of points. In this case, it is important to make it clear that some situations do not have any impact on your bonus, such as:

  • 24-hour assistance activation ;
  • use of winch;
  • glass damage coverage;
  • accidents with third parties ;
  • residential support benefit.

Therefore, even if you need to use some of these services , rest assured knowing that your bonus class will not be changed and the insurer must serve you quickly and responsibly.

In practice, how much is a discount point worth?

Reading all this information, you must be curious about how much discount you can receive for each positive point accumulated, right?

In general, what you see is that one point usually generates an average discount of 5%. It is common for you to start with a score of 0 and each year accumulate points, which can reach up to 10 — which is equivalent to a final discount of up to 50%.

Obviously, this discount varies according to several premises, such as age, sex, marital status and type of vehicle insured.

How to earn more bonus classes?

Finally, we would like to emphasize how advantageous it is for you to acquire these bonuses. You can renew your policy every year without missing any deadlines and receive unmissable discounts.

However, this is a benefit that can only be achieved by adopting a good posture behind the wheel and being cautious. What does this mean?

Drivers who are aware and concerned about ensuring the integrity of their vehicles are the ones who benefit the most from this bonus system. Therefore, even if you have a policy that protects you from possible financial losses, it is worth adopting some good practices, such as:

  • have defensive driving strategies ;
  • do not talk on the cell phone while driving;
  • do not leave your car parked in places with little traffic;
  • store the vehicle in a garage, especially at night;
  • carry out periodic check-ups at reliable dealerships.

Finally, by following these and other precautions, you can be sure that with each renewal you will be rewarded and will be able to keep your vehicle protected without spending more on it.

Did you understand what the bonus class is? Throughout this post, we have provided a wealth of relevant information on the subject. The aim is for you to learn more about this bonus and be able to enjoy discounts on your next renewal.

Remember that having car insurance is a great convenience and security, especially due to the increase in traffic accident and  car theft rates . However, even in this scenario, it is possible to stay away from these accidents and get interesting discounts.

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