The no claims-bonus category is part of the overall insurance scheme for motor vehicles, which is applicable to third-party liability insurance and fully comprehensive cover insurance. The no claims-bonus category indicates the number of accident-free years, according to which the contribution rate is calculated. While the categories are the same for all insurance companies, insurance premiums in each category do, nevertheless, vary from provider to provider.
A beginner driver starts with the highest contribution level that is the no claims-bonus category 0. Premiums are accordingly high and situated on average around 230%. After one year without having made any claims, the insured driver goes up automatically to category 1, with a contribution rate of 100%. The highest no claims-bonus category is 30 and entails a contribution of about 25%. When changing insurance provider it is possible to transfer one’s no claims-bonus.
No claims-bonus for second cars
With second cars it is possible to be allocated a cheaper category. In fact, when the first vehicle has a no bonus-claim category equivalent to 1/2 or higher, it is feasible to have the second car also classified in the same category of 1/2. This would entail a contribution of up to 140%. Second cars are often reserved for the use of young first-time drivers: so, the offspring‘s vehicle will be registered as the parents’ second car, in order to save over the half on contribution rates.
Downgrades of the no claims-bonus category
Each insurance provider individually decides about downgrades. While upgrading to the next high category always occurs automatically, a downgrade can imply “sliding back” several levels. Thus, an insured driver who was originally in category 5, can slide back to category 2 after one damage claim, or to category 1/2 after two damage claims; after three damage claims, he or she will be allocated the damage rating M.