What is the bonus-malus merit system?

The bonus-malus system, organised in merit classes, regulates car insurance policies in Italy and is the main method through which the cost (premium) of the TPL policy is established annually.

This is a reward mechanism used to assess the frequency of road accidents committed by motor vehicle drivers. The owner/entitled person earns (bonus) or loses (malus) classes based on their driving behaviour. Merit classes range from 18, the highest and most expensive, to 1, the lowest and cheapest.

The bonus-malus system has been introduced to encourage drivers to drive more safely and responsibly in order to reduce the number of road accidents.