Work out bonus malus level instantly with clear inputs, formula shown and shareable results.
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.
Level transition
New level = level - 1 if claim-free, else level + claims × step; Factor = 1 + (level - 14) × 5%
Because the penalty is several steps up while recovery is one step per year — the asymmetry is what discourages small claims.
Yes. This model floors the factor at 50% and caps it at 200% of base premium, as most published scales do.