The Bonus-Malus system is officially in effect: the end of the era of flat car insurance prices.

After much preparation, the "Bonus-Malus" system for compulsory motor insurance (Civil Disability Insurance) has officially come into effect in Bulgaria. The price of your policy is now directly dependent on your personal driving record over the past five years.

Here are the key details of how the new rules work in practice:

• Only real accidents are taken into account: Fine surcharges (malus) or discounts (bonus) depend solely on the history of damage caused, and not on minor traffic violations (for example, fines for speeding without an accident).

• Free pricing: The government does not specify the exact percentage of discounts or price increases. Each insurance company uses its own risk assessment methodology, which it is required to publish on its official website.

• Total digitalization: The Guarantee Fund has become a single, centralized data hub. Insurers are required to enter information about new claims into the registry in real time. Paper certificates are no longer required, as companies have direct internal access to driver records.

• The re-registration loophole has been closed: Attempts to "cleanse" a bad history by formally transferring the car's registration to a relative will no longer work. The Guarantee Fund will provide insurers with a damage history, tracking the actual owner, even if the owner has changed, but the policyholder was previously the owner or registered driver of the car.

• Help with QR code: Any driver or car owner has the right to request a centralized statement of their insurance history for the past five years. This document can be obtained online and is equipped with a special machine-readable QR code to protect against forgery.

The system makes insurance fair: careful drivers with a clean record will pay less, while violators will have to compensate for their risks in euros.