Bonus protection in car insurance: is it a good idea?
Protecting your no-claims bonus can save you from a premium increase after a claim. Find out here what this car insurance add-on is and whether it's worth it.
28.05.2025
iStockphoto / Serhii Hryshchyshen
1. What is bonus protection in car insurance?
If you drive for a long time without having an accident, you benefit from lower premiums. After you have an accident, your premiums will increase in the subsequent year. Bonus protection is an optional add-on to car insurance that keeps your premium level stable after an accident.
You can take out bonus protection with compulsory vehicle liability insurance or full casco insurance. This additional cover is not available with partial casco insurance.
2. Bonus protection: how much does it cost?
The cost of bonus protection varies depending on the insurance company and the customer's individual situation. Two examples:
New drivers pay a noticeably higher surcharge than people with many years of driving experience.
Drivers who have caused multiple instances of damage usually pay more for bonus protection.
As premiums are expensive enough, many people choose to not take out bonus protection. However, you may incur additional costs if you make a claim and don't have this protection.
Switching insurance after an accident
Did you not take out bonus protection and have just had to submit a claim? If your car insurance will pay for the damage, it's a good time to switch insurer. You can cancel your policy within 14 days of notification.
Compare premiums. Check whether other insurers will accept you, and on what terms. Important: you must inform the new insurance company of any previous damage.
What costs will I incur if I do not have bonus protection?
The exact costs you will incur depend on your premium and the premium level system of your car insurance. However, it often takes several years after an upgrade to reach your old bonus level again. This means that you will pay higher premiums over a longer period of time.
You are in the lowest premium level, where you pay 40% of the original premium – 400 francs per year. After an accident, you rise four levels and now pay 80%.
You will be downgraded one level each year, which means that it will take you four years to return to the lowest premium level. During this time, you will pay a total of 1,000 francs more in premiums.
3. Are there any restrictions on bonus protection?
As a rule, bonus protection applies for a maximum of one accident per observation period. Any further damage in the same insurance year will result in your premium level being increased despite the bonus protection, as the protective effect will then be exhausted.
Good to know: the observation period is defined differently depending on the insurer. For some insurers, it is dependent on when the beginning and end of the insurance year falls. Other insurance companies use the same, fixed period for all policyholders.
No, this is not usually possible. When you switch insurance companies, the new insurer will check your previous claims history and calculate the premium based on this. However, the way in which the damage is classified varies from one provider to another.
4. Is it worth taking out bonus protection?
Bonus protection is worthwhile for most policyholders. It protects them against drastic premium increases after an accident.
Protecting your no-claims bonus is a particularly interesting prospect if you have not had an accident for several years and have reached the lowest premium level. This is because a single accident can quickly wipe out the premium discount you have built up over the years.
Good to know: some car insurance companies do not have a system with premium levels. If you are insured with one of these providers, you do not need bonus protection.
This article was first published on 11.02.2019
