AXA Assurances Luxembourg
How does the no-claims bonus system work in car insurance?

In auto insurance, the no-claims-bonus system is designed to reward good driving behaviour and sanction bad behaviour.

A portion of your premium (the premium linked to the Third-Party Liability cover and, in some cases, the premium linked to the Material Damage cover) is calculated according to your no-claims-bonus level.

The highest level is 22 and the lowest is -3:


The basic no-claims-bonus level is 11; it's the one we apply to you when you have no history of auto insurance (so if this is the first time you insure a vehicle), or if you insure an additional vehicle (because you cannot duplicate levels acquired on other vehicles).


Over the years, the level evolves:

  • If you did not have an accident for which you are responsible during the year, your level decreases by 1 point, which can lower your premium the following year (see diagram above).
  • Conversely, a penalty is applied when you have had an accident for which you are responsible (+3 points), which increases your premium.


Remember that your level stays the same even if you change insurer.

If your old policy is terminated, you just have to ask for a no-claims-bonus certificate from your former insurer for the new insurer to apply the same level.


At AXA, we make a distinction between two no-claims-bonus systems:

  • The “Third-Party Liability” system, related to accidents you cause to a third party (managed by legal provisions applicable to all insurers)
  • The “Material Damage” system, related to accidents involving damage to your bodywork (only applicable under the formula OptiDrive Privilège).

According to your formula, these levels are indicated on each of your bills, to help you follow the evolution of your premium.