Premiums
Car insurance bonus and premium levels
Insurance companies use a bonus system to calculate the premium amount. Find out here how this works, what premium levels have to do with it and what happens in the event of a claim.
08.04.2025
iStock / AzmanL
1. What is the bonus system used in Switzerland?
Swiss car insurance companies use a bonus system to calculate your premium. In this context, “bonus” refers to a credit or discount. The system works both ways, however, with negative factors incurring a penalty or surcharge.
It has a significant effect on how your premium might change over time. The principle is simple: the fewer claims the insurance company has to settle, the lower your premium will be.
2. What is a bonus or premium level?
Premium levels are used for third-party liability and collision casco insurance. The fundamental component of car insurance is the premium.
To calculate the premium, your personal criteria are also taken into account (e.g. age, claims history and driving experience). The insurance company uses these criteria to set your premium level, which could be 65%, for example. In other words, you’d only have to pay 65% of the premium that was originally calculated.
What happens if I change my insurance?
Each insurance company calculates premium levels independently. So, if you switch to a different insurer, your premium level will be recalculated.
Most insurance companies ask whether you have made any claims in recent years. If you haven’t had any accidents, this will also be taken into account when switching insurer.
3. Bonus levels in car insurance: what are they and how many are there?
Some car insurers have a lowest premium level of around 30% for cars, while others set theirs at 45%. The bonus levels for liability, partial and collision casco insurance are calculated separately and do not have to be the same.
In the following example, premium levels 1 to 6 are bonus levels. Levels 1 to 13 are negative levels:
4. When will the premium level increase?
After a claim is paid out, the insurance company raises the premium starting from the following year of insurance. It usually goes up several levels. If you then have a year without incident, the premium will drop again in the following year.
Good to know: the increments and thus the premium increase following a claim will differ depending on the insurer.
5. How can I prevent the premium level from going up?
Taking out bonus protection insurance can prevent your premium from going up. With this additional module you can prevent the premium increasing after a claim.
6. How long do you keep a bonus level?
If you are not yet at the lowest level of the bonus system, the level drops by a few percentage points each year, i.e. you pay a little less each year until you reach the lowest level and the premium stays the same.
This article was first published on 01.09.2021
