What is the maximum discount you can receive for claim-free years in terms of CRS?

The correct answer reflects the standard approach used in certain insurance programs to reward policyholders for maintaining a claim-free record. In many jurisdictions, insurers use a system known as the Claim Reduction System (CRS), which allows insured individuals to receive significant discounts on their premiums for each year without claims.

Typically, the maximum discount that can be achieved through these claim-free years is capped to maintain balance in the risk pool for insurance companies and ensure they remain financially viable. A discount of -43 is indicative of a structured reward program in which consistent claim-free behavior directly correlates with lower insurance premiums for the policyholder.

Achieving a cumulative discount like this encourages safe driving or risk-free behaviors among insured individuals, ultimately benefiting both the insurer and the insured through reduced costs and the promotion of safer practices. This maximum discount also serves as a motivational tool for policyholders, incentivizing them to minimize claims wherever possible, thus fostering a more responsible insurance environment.