Claim-free years premium impact checklist: see what your no-claim discount really does

Discount percentage alone says too little

Suppose insurer A gives 60% discount on a base premium of €800. That is €320 per year. Insurer B gives 50% discount on a base premium of €550. That is €275 per year. Insurer B is cheaper, even though its discount is lower. The only number that matters is the premium after the discount is applied.

To compare properly, you also need to know how many years the new insurer accepts. Many insurers cap at 15 or 20 years — if you have built up 25, the excess years are lost when you switch.

What does a claim cost via the bonus-malus ladder?

After a claim, most insurers drop you back 3 to 5 steps on the bonus-malus ladder. If one step represents €100 per year in extra premium and you fall 4 steps, you pay €400 per year more for the next 2 to 3 years. A claim for €600 can end up costing you €800 to €1,200 in additional premium.

Work out the impact

Premium pressure checklist

• Many years, but a high base premium? The discount may be less impressive than the percentage suggests.
• Thinking about claiming small damage? First calculate how much the ladder fall-back costs you over two years.
• Planning a switch? Check whether the new insurer accepts your accumulated years in full or caps them.
• Two cars or a partner policy? Check whose name the claim-free years are on and whether transfer is possible.

Practical rule: claim or pay yourself?

Use your bonus-malus fall-back as a filter. Do not know how many steps you fall back per claim? Call your insurer or read the policy on that exact point. That answer gives you a direct cut-off for when claiming makes sense.