Car Insurance Often Unfavorable for ConsumersCar Insurance
There are major differences between the Bonus / Malus ladders of car insurance in premium increases after damage caused by debt. The premium increase varies between 0 and 160 percent after a claim. There are also major differences in relapse after damage. Someone with 21 claim-free years does not lose any claim-free years with one insurer, while he loses 18 years with the other. “Because of this major relapse, these people are actually” forced “to stay with their current car insurance policies. The premium is usually a lot higher for a new insurer with 3 claim-free years, “said Eric Ty of Adams Voentris tonight in the Radar consumer program.
Relapse of claim-free years
In particular, consumers with many claim-free years run the risk of losing many claim-free years after a claim. Customers of, for example, car insurer Onna-onna with 21 damage-free years lose 18 damage-free years after one claim, because they fall back on the B / M ladder. At FBTO, people with 21 claim-free years fall back to 4 claim-free years. On average, insured persons lose 21 damage-free years with 21 damage-free years. Car insurer Ditzo has no relapse on the B / M ladder. As a result, customers of this insurer remain on the same step after damage and they also do not lose claim-free years.
Large differences in premium increases
Falling back on the B / M ladder not only has consequences for the claim-free years, but also for the premium that then rises. For someone with 6 claim-free years, the premium increases by an average of 60% after one claim. Even with this example, car insurer Royal Insurance has a premium increase of 160 percent after one claim, while Ditzo has no premium increase after a claim.
‘The bonus / malus system is opaque since every car insurer uses a different ladder, which means that the boarding discount, fallback and loss of claim-free years differ. Less than 30 percent of insurers clearly show the damage-free years and steps in their ladder. In addition, many car insurers do not include the number of claim-free years on the policy, but only the B / M. This creates uncertainty among consumers, “says Adams Voentris.