Car insurance no-claims bonus class: Save costs through smart classification and optimization
22 May 2025
8
Minutes
Katrin Straub
CEO at nextsure
The no-claims class of your car insurance is a crucial factor for your premium. Understand the system to reduce costs in the long term. This article shows you how it works and what savings potential there is.
The topic in brief and concise terms
The SF class rewards claim-free driving with lower premiums in motor third party liability and comprehensive insurance.
A claim results in a downgrade in the SF class, leading to higher premiums; options such as discount protection or self-payment can prevent this.
SF classes can be transferred under certain conditions, which can bring financial advantages, especially for novice drivers.
Quick Facts: The car insurance SF class at a glance
The no-claims bonus class (SF-Klasse) is a rating system used by car insurance companies. It records the number of years a policyholder has driven accident-free. A higher SF-Klasse leads to a lower insurance premium. The scale often ranges from SF-Klasse 0 for novice drivers to SF-Klasse 35 or even SF 50 for very long-term accident-free drivers. In addition to the regular classes, there are special classes like SF ½, S, or M, which are used, for example, for beginners or after multiple claims within a year. The SF-Klasse is relevant for liability and comprehensive car insurance; partial coverage does not have SF-Klassen. You will usually find your current classification on your annual contribution statement.
Practical Part: How Your SF-Class is Determined and Influences the Contribution
Your SF class in car insurance is reassessed annually. If you drive without an accident for a calendar year, you usually move up one SF class. For instance, if you have held your driving licence for five years without any at-fault accidents, you typically reach SF class 5. Beginners often start in SF class 0 or, if they have held their licence for three years, in SF class ½. You can find the exact impact on your contribution rate in the SF class table from your insurer. An example: With a basic premium of 1,000 euros and classification in SF class 10 with a contribution rate of, say, 38 percent, you pay 380 euros. In SF class 1/2 with 50 percent, it would be 500 euros. The savings on premiums from a high SF class can be substantial. The exact percentages vary between insurers.
Here's an overview of how claim-free years can typically affect your classification:
1 claim-free year: Classification in SF class 1
3 claim-free years: Classification in SF class 3
5 claim-free years: Classification in SF class 5
10 claim-free years: Classification in SF class 10
15 claim-free years: Classification in SF class 15
Over 35 claim-free years: Often the highest SF class with maximum discount
This system clearly shows how accident-free driving directly translates into lower costs for your SF class insurance.
Expert Depth: Downgrading After a Claim – What You Need to Know
An accident for which you are at fault and which is regulated by your car insurance will inevitably lead to a reduction in your SF class. This means that your no-claims discount will decrease and your insurance premium will increase in the following year. The exact number of classes by which you are downgraded depends on your current SF class and your insurer's reduction table. These tables are part of the contract. Even from high SF classes, a downgrade to very low classes can occur, especially with multiple claims. However, there are ways to mitigate or avoid a downgrade. One option is the so-called discount protection offered by many insurers. This prevents a downgrade once a year after a claim. Alternatively, you can pay smaller claims yourself to protect your SF class. Carefully consider up to what damage amount it makes sense to pay out of your own pocket. Our expert tip: Always clarify the details of downgrades and protection mechanisms before signing a contract. Knowledge of the premium rate of your car insurance is essential here.
Transfer of SF class: Opportunities and requirements for lower premiums
Under certain conditions, you can transfer your no-claims bonus (SF-Class) to another person. This is often possible within the family, such as from parents to children or between spouses. The recipient can thus benefit from a lower premium. An important condition is usually that the recipient holds a driving license and either regularly uses the vehicle or lives in the same household. However, you can only transfer as many claim-free years as the recipient could have experienced since obtaining their driving license. For example, if a child has had their driving license for three years, they can only take over SF-Class 3, even if the parents wish to give away SF-Class 20. The transfer is generally irrevocable; the transferor loses their SF-Class. The process usually requires an application form from the insurance provider. Be sure to check the conditions to transfer car insurance bonuses. This arrangement can mean a significant financial relief for young drivers when they inherit car insurance from their parents.
Special regulations for the SF class: Focus on second cars and new drivers
There are specific rules for beginners and second cars when classifying them in the SF class of car insurance. Beginner drivers who have held their driving licence for less than three years often start in SF class 0. With more than three years of licensing, a classification in SF ½ is common. Some insurers offer special discounted classifications for insurance for young drivers, particularly if the parents are already insured with the same provider. For a second car, many insurers offer an improved classification, often SF ½ or even SF 4, if the first vehicle has already reached a certain SF class. The second car regulation can also benefit beginner drivers if the vehicle is insured as a second car through the parents. In the event of a break in the contract, for example, through the sale of the vehicle, the SF class is usually retained for a period of seven to ten years, sometimes even indefinitely. After this period, reclassification as a beginner driver may take place. It is advisable to be informed about the costs of car insurance for beginner drivers and the specific affordable cars for beginner drivers.
The following points are often relevant in special regulations:
Duration of holding the driving licence for initial classification.
SF class of the first vehicle for second car classification.
Regular use of the vehicle by the registered driver.
Maximum duration of an insurance pause without losing the SF class.
Expertise in Depth: Legal Aspects and Design Tips for SF Class
The specific regulations regarding no-claims discount classes, contribution rates, and downgrades are determined by each insurer in their General Terms and Conditions (AVB). Since the deregulation of the insurance market in 1994, there has been no legal standardisation of the no-claims discount class tables or contribution rates. Each provider calculates independently here. When comparing insurance, pay attention not only to the price but also to the details of the no-claims discount class regulation. This particularly concerns the downgrade tables and the conditions for a discount protection. Our expert tip: Keep old insurance documents well. In the event of a longer insurance break, proof of the last achieved no-claims discount class can be crucial to avoid being classified as a novice driver again. The transfer of car insurance to a child is an example where precise knowledge of the conditions is important.
Optimize SF class: Strategies for long-term lower insurance premiums
The most important strategy for optimising your SF class is accident-free driving. Every year without a self-inflicted incident improves your rating and potentially lowers your premium. Consider paying for minor damages yourself to avoid being downgraded. Discount protection may also be worthwhile to secure the best no-claims class achieved with a single claim per year. Regularly compare offers, as insurers' premium rates and SF class systems can vary. Take advantage of opportunities like the second car rule or transferring SF classes if they suit your situation. Careful consideration of your options can lead to savings of several hundred euros over the years. Remember, a high SF class is a valuable asset. With foresight and the right decisions, you secure permanently favourable conditions for your car insurance.
Here are some measures to improve your SF class:
Always drive proactively and avoid accidents.
Assess small damages to determine if paying yourself is cheaper than a downgrade.
Consider purchasing discount protection if your insurer offers it.
Utilise the option of transferring SF classes within the family, if appropriate.
Research special classifications for second cars.
Compare the conditions of different insurers, especially the downgrading tables.
These measures help you proactively manage your car insurance SF class.
Your path to an optimized car insurance SF class
More useful links
Wikipedia provides comprehensive information on the no-claims discount in German car insurance.
The German Insurance Association (GDV) explains how age affects car insurance premiums.
The Federal Statistical Office (Destatis) publishes press releases that may contain relevant statistics, including on vehicles.
The Federal Motor Transport Authority (KBA) provides detailed vehicle statistics on the inventory in Germany.
Under Laws on the Internet, you will find the Insurance Contract Act (VVG), which governs the legal basis for insurance.
The Stiftung Warentest offers a calculator and articles about when it is worthwhile to pay for car damage yourself.
The German Insurance Association (GDV) provides the General Terms and Conditions for car insurance (AKB) as a PDF.
FAQ
How is my no-claims bonus class determined when I insure a car for the first time?
As a novice driver, you generally start in SF Class 0 or, if you have held your driving licence for more than three years, in SF Class ½. However, there are ways to achieve better classifications, for example through your parents' second car regulation.
What happens to my no-claims discount if I switch my car insurance?
The SF class you have achieved is usually accepted by the new insurer. However, the exact premium rates may vary as each insurer has its own tables.
How long does my SF class remain valid if I deregister my car?
Most insurers store your no-claims class for seven to ten years. Some providers have longer periods or the no-claims class does not expire at all. Proof is important when re-registering.
What role does the SF class play for partial coverage insurance?
The no-claims bonus (SF class) does not apply to third-party, fire and theft insurance. It is only relevant for motor liability insurance and comprehensive coverage.
Can I always avoid a downgrade of my no-claims bonus class after an accident?
You can avoid a downgrade by paying for the damage yourself or if you have agreed to a discount protection in your contract. The discount protection usually covers one claim per year.
Is it worth paying for small damages yourself to maintain the no-claims class?
Yes, it often makes sense to cover minor damages yourself. Compare how much more you would pay in increased contributions due to a downgrade over the next few years versus the one-time cost of the damage.
