Bonus Malus Level Calculator

Work out bonus malus level instantly with clear inputs, formula shown and shareable results.

About Bonus Malus Level Calculator

Bonus-malus systems move a motor policy down a discount scale for each claim-free year and up several steps for each claim. The level maps to a premium factor, so the scheme prices experience without a full statistical rating exercise.

Formula

Level transition

New level = level - 1 if claim-free, else level + claims × step; Factor = 1 + (level - 14) × 5%

Worked example

With the default values below, Bonus Malus Level Calculator returns Premium At New Level of $19,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Base Premiumminimum 0: 20,000
Current Bonus-Malus Levelaccepts 1–22: 10
Claims Reported This Yearaccepts 0–10: 1
Levels Added Per Claimaccepts 1–6: 3

Results

Premium At New Level: $19,000.00
New Bonus-Malus Level: 13
Premium Factor: 0.950
Change Versus Current Premium: $3,000.00

Step by step

1Values used
2Level transition
3Premium At New Level= 19,000.00
4New Bonus-Malus Level= 13
5Premium Factor= 0.950
6Change Versus Current Premium= 3,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why does one claim cost several years of bonus?

Because the penalty is several steps up while recovery is one step per year — the asymmetry is what discourages small claims.

Is the scale capped?

Yes. This model floors the factor at 50% and caps it at 200% of base premium, as most published scales do.