Taking over car insurance profitably: How to secure favourable terms and transfer no-claims bonus classes
02.04.25
9
Minutes
Katrin Straub
Managing Director at nextsure
Would you like to take over an existing car insurance policy and benefit from lower premiums? This is often easier than you might think, but it also comes with a few pitfalls. Find out here how you can save up to eighty per cent of the costs.
The topic in brief and concise terms
The transfer of the no-claims bonus class (SF class) is the key to saving costs when taking over a car insurance policy and is usually restricted to close family members.
The recipient can only take over as many claim-free years as they could have accumulated themselves since obtaining their driving licence; the giver permanently loses the no-claims class.
Special termination rights in the event of a change of owner and specific provisions in the event of death require careful observance of deadlines and insurance conditions.
Quick check: The key facts about taking over car insurance
Taking over a car insurance policy is often associated with transferring the no-claims bonus class (SF class). This can lead to considerable savings of up to eighty per cent on insurance premiums. The SF class reflects the number of years driven without an accident. A transfer is usually possible within the family, for example from parents to children or between spouses. However, the recipient can only take over as many claim-free years as they could themselves have accrued since obtaining their driving licence. The previous policyholder loses their entitlement to the discount as a result of the transfer. A request to the insurer is usually required for the transfer. Please note that comprehensive insurance does not use SF classes, so no transfer is possible here. The exact conditions may vary depending on the insurer, so clarifying this early is crucial for a successful car insurance transfer.
Practical guide: Successfully transferring car insurance and no-claims bonus class
The process of taking over a motor insurance policy, and in particular the no-claims discount class, involves a few steps. First, the terms must be clarified with the current insurer. Many insurers provide special forms for this purpose, which can be submitted online or by post. A typical scenario is the taking over the insurance from your parents, for example when a second car is transferred to the child. It is important here that the child can only take over the SF class up to the level of their own driving experience; if they have held a driving licence for five years, only five claim-free years can be credited. Assuming the father has SF class 20 (twenty accident-free years) and the child has been driving accident-free for five years, the child can transfer a maximum of SF class 5. The father's remaining fifteen years would then lapse if he does not insure another vehicle himself. The transfer is a one-off process and cannot be reversed. The decision should therefore be well considered, especially if the person transferring it plans to insure another vehicle again in future. The consent of both parties and the insurer is essential for the change of motor insurance policyholder.
Expert knowledge: mastering legal frameworks and special cases
When taking over a car insurance policy, legal aspects also play a role. In principle, when a vehicle is sold, the insurance contract passes to the buyer; however, they have a special right to cancel for around four weeks after the registration change. The situation is different in the event of death: here, the contract passes to the heir, and the heir generally does not have an immediate special right to cancel. In the event of death, the no-claims bonus class can usually be transferred to a close relative within twelve months; a death certificate must be provided for this. A transfer of the no-claims bonus class is only relevant for motor third-party liability and comprehensive insurance. Motor third-party liability insurance is required by law. There are certain conditions that must be met for the transfer of the no-claims bonus class:
A close family relationship (e.g. parents, children, spouse).
The recipient must have regularly driven the vehicle (depending on the insurer).
The recipient holds a valid driving licence.
The transferor waives their no-claims bonus class in writing.
The transfer is only possible to the extent that the recipient could have achieved themselves.
Some insurers require a shared household.
Please note that special classifications of the no-claims bonus class that are not based on actually earned claim-free years are usually not transferable. A sample letter for a change of policyholder can make the process easier. The exact rules for transferring percentages of motor insurance should always be clarified directly with the respective insurance provider.
Transferring no-claims bonus class: the details in focus
Transferring the no-claims bonus class (SF class) is a key issue if you want to take over car insurance to save costs. The SF class can mean a discount of up to eighty percent on the insurance premium. It is important that only the number of claim-free years is transferred, not the exact percentage of the discount, as this can vary from insurer to insurer. If you want to transfer the percentages of car insurance, you are actually referring to the SF class. Transfer is usually limited to close family members. These include:
Spouses or registered civil partners.
Children (biological and often non-biological as well).
Parents.
Grandparents to grandchildren (sometimes with conditions such as a shared household).
Siblings (less common, but possible with some providers).
The recipient must prove that they have used the vehicle regularly, if the insurer requires this. Transferring it to new drivers is often not advisable, as they can only credit a few years and valuable SF years of the donor could be lost. Transferring car insurance to a child should therefore be carefully considered. The SF class can also be taken with you when you change insurer, but the new provider is not obliged to grant the same discount rate. Comprehensive cover also benefits from a high SF class.
Avoiding common mistakes and unlocking savings potential
When taking over car insurance and the no-claims discount class, mistakes can be costly. A common mistake is transferring a high no-claims discount class to a new driver who has held a driving licence for only one or two years. This means many valuable, claim-free years are wasted. It is often better if the young driver first gains some driving experience over a number of years. Another issue is missing deadlines, for example when transferring in the event of death, which often has to be completed within twelve months. Always check the exact terms of your insurer, as these may vary. The transfer of the no-claims discount class is irrevocable; the transferor permanently loses their discount. This should be taken into account if the transferor later wants to insure a vehicle again. It is also important to know that discount protection or special classification with the previous insurer is generally not transferable to the new policy or a new insurer. Careful checking and advice, for example through our portal for car & mobility, can help avoid these mistakes and make full use of the saving potential of up to eighty per cent.
Your next step towards cheaper car insurance
Taking over a car insurance policy offers significant savings potential, particularly through transferring a high no-claims discount class. If you have considered all eventualities and clarified the requirements with the insurer, there is often nothing standing in the way of a lower premium. Remember that good preparation and understanding the details are crucial. Take the opportunity to receive personalised advice to find the solution that is optimally suited to your situation. At nextsure, we are happy to help you review your insurance situation free of charge and receive concrete suggestions for optimisation. Request your individual risk analysis now and benefit from our expertise in digital insurance solutions.
More useful links
Wikipedia provides a comprehensive overview of the no-claims discount system in German motor insurance.
GDV provides statistics on the business development of motor third-party liability insurance in Germany.
GDV provides information on possible billions in losses for motor insurers in 2024.
The Consumer Advice Centre offers advice on how to save on motor insurance.
The Consumer Advice Centre explains the requirement for motor insurance for vehicle owners in Germany.
The Federal Statistical Office (Destatis) provides statistical information on vehicle registrations in Germany.
Laws on the Internet provides the German compulsory insurance law for vehicle owners (PflVG).
FAQ
What documents do I need to take over a car insurance policy?
For the transfer, you usually need an application from the insurer, a waiver declaration from the previous policyholder, a copy of the new policyholder’s driving licence and, if applicable, proof of the relationship as well as the insurer’s consent.
Is it also possible to transfer the no-claims bonus to non-relatives?
As a rule, the transfer of the no-claims discount class is limited to close family members. Some insurers may allow exceptions, but this is rare and must be clarified on an individual basis.
How much does it cost to take over a car insurance policy?
The mere transfer of the policy or the no-claims class usually does not incur any direct fees from the insurer. However, costs may arise when re-registering the vehicle at the registration office (approx. 20-30 euros).
Can I also take over a car insurance policy in the event of a death?
Yes, in the event of death, close relatives (e.g. spouses, children) can take over the car insurance and often also the deceased’s no-claims bonus class. This must usually be applied for within twelve months of the death and the death certificate must be submitted.
Is it worth transferring the no-claims discount class for new drivers?
For complete novice drivers, taking over a high no-claims discount class often isn't worthwhile, as they are only credited with very few years and the rest are lost. It may be more sensible to build up several years of your own driving experience.
Can I transfer the no-claims bonus class I’ve taken over to another insurer?
Yes, the transferred no-claims bonus class can usually be taken with you when you switch insurance to a new provider. However, the new insurer is not obliged to grant exactly the same discount rate.
