Is switching car insurance after damage wise?

Switching after negative claim-free years

You accrue one claim-free year each year you do not claim. If you make a claim, you lose five claim-free years. You will receive a malus registration if you have negative claim-free years on your car insurance policy. You then have less than 0 claim-free years. If you have negative claim-free years, it is generally not wise to switch to another car insurance policy. Most people switch car insurance to be cheaper. With a malus registration, you are unlikely to find cheaper insurance than your current insurance. Moreover, it is not always possible to switch with a malus registration because few insurers will accept such an application. Therefore, it is often wiser to stay with your current insurer or intermediary.

For your malus registration to expire and rebuild claim-free years, claim-free driving is necessary. Unfortunately, this does not happen quickly. In the event of a claim, you lose 5 claim-free years in one go. You then have to drive damage-free for 5 years to make up for one damage. Do you currently have a malus registration and want to switch? Then there are certainly possibilities. However, you have to take into account a high premium and it might be better to switch when you no longer have negative claim-free years.

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