Profitable acquisition of car insurance: How to secure favorable conditions and transfer no-claims classes
2 Apr 2025
6
Minutes
Katrin Straub
CEO 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 does come with some pitfalls. Find out here how you can save up to eighty per cent on costs.
The topic in brief and concise terms
The transfer of the no-claims bonus class (SF-Class) is key to cost savings when taking over car insurance and is usually limited to close family members.
The recipient can only take over as many accident-free years as they could have accumulated themselves since acquiring their driving license; the giver permanently loses the SF class.
Special termination rights upon change of ownership and specific regulations in the event of death require careful attention to deadlines and insurance conditions.
Quick Check: The key facts about the acquisition of car insurance
Taking over a car insurance policy is often associated with the transfer of the no-claims discount (NCB class). This can lead to significant savings of up to eighty per cent on insurance premiums. The NCB class reflects the number of years driven without accidents. 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 have experienced themselves since obtaining their driving licence. The previous policyholder loses their entitlement to the discount as a result of the transfer. Usually, an application to the insurer is necessary for the transfer. Note that the partial coverage insurance does not have any NCB classes, so a transfer is not possible here. The exact conditions may vary depending on the insurer, so it's crucial to clarify early for a successful car insurance takeover.
Practice Guide: Successfully Transferring Car Insurance and SF Class
The process of transferring car insurance, particularly the no-claims bonus, involves several steps. First, the terms must be clarified with the current insurer. Many insurers offer specific forms for this purpose, which can be submitted online or by mail. A typical scenario is the transfer of insurance from parents, for instance, when a second car is handed over to the child. It is important here that the child can only take over the no-claims bonus up to the extent of their own driving experience; if they have held a driver's license for five years, only five accident-free years can be credited. Assuming the father has a no-claims bonus of 20 (twenty accident-free years) and the child has been driving accident-free for five years, the child can take over a no-claims bonus of up to 5. The remaining fifteen years of the father would expire in this case if he does not insure another vehicle himself. The transfer is a one-time process and cannot be undone. Therefore, the decision should be well-considered, especially if the transferor plans to insure a vehicle again in the future. The consent of both parties and the insurer is essential for the vehicle policyholder change.
Expertise: Mastering legal frameworks and special cases
When taking over car insurance, legal aspects also play a role. In principle, when a vehicle is sold, the insurance contract is transferred to the buyer, but the buyer has a special right to cancel within about four weeks after re-registration. It is different in the case of death: Here, the contract is transferred to the heir, and an heir usually does not have a direct special right to cancel. In the event of death, the SF class can usually be transferred to a close relative within twelve months, and a death certificate must be presented for this. The transfer of the SF class is only relevant for motor liability and fully comprehensive insurance. The motor liability insurance is legally required. There are certain conditions that must be met for the transfer of the SF class:
Close familial relationship (e.g. parents, children, spouses).
The recipient must have regularly driven the vehicle (depending on the insurer).
The recipient holds a valid driving licence.
The assignor waives their SF class in writing.
The transfer is only possible to the extent that the recipient could have achieved themselves.
Some insurers require a domestic community.
Please note that special classifications of the SF class, which are not based on actual accident-free years, are usually not transferable. A template letter for changing the policyholder can facilitate the process. The exact regulations for transferring the percentages of the car insurance should always be clarified directly with the respective insurance provider.
Transfer of No-Claims Class: Focusing on the Details
Transferring the no-claims class (SF class) is a key aspect when you want to take over a car insurance policy to save costs. The SF class can mean a discount of up to eighty percent on the insurance premium. It is important to note that only the number of claim-free years is transferred, not the specific percentage of the discount, as this can vary from insurer to insurer. When you want to transfer the percentages of a car insurance policy, you are actually referring to the SF class. The transfer is generally limited to close family members. These include:
Spouses or registered partners.
Children (biological and often also non-biological).
Parents.
Grandparents to grandchildren (sometimes with conditions such as shared household).
Siblings (less common, but possible with certain providers).
The recipient must demonstrate regular use of the vehicle if required by the insurer. Transferring to novice drivers is often not advisable, as they can only account for a few years, and valuable SF years of the donor might be lost. Transferring a car insurance policy to a child should therefore be well-considered. The SF class can also be retained when changing insurers, although the new provider is not obliged to grant the same discount rate. The comprehensive insurance also benefits from a high SF class.
Avoiding Common Mistakes and Utilising Savings Potential
When taking over car insurance and the SF class, mistakes can be costly. A common mistake is transferring a high SF class to a novice driver who has only held a driving licence for one or two years. Here, many valuable, accident-free years are left unused. It is often better for the young driver to first gain several years of driving experience. Another point is missing deadlines, such as in the case of transfer due to death, which often must be done within twelve months. Always check the exact conditions of your insurer, as these can vary. The transfer of the SF class is irrevocable; the donor permanently loses their discount. This should be considered if the donor wishes to insure a vehicle again later. It is also important to know that a discount protection or special classification with the old insurer is generally not transferable to the new contract or a new insurer. A careful review and consultation, for example, through our portal for Auto & Mobilität, can help avoid these mistakes and maximize the savings potential of up to eighty percent.
Your next step towards a cheaper car insurance
Taking out car insurance offers significant savings opportunities, especially by carrying forward a high no-claims discount. Once you've considered all possibilities and cleared the prerequisites with the insurer, nothing often stands in the way of a cheaper premium. Remember, thorough preparation and understanding the details are crucial. Take the opportunity to receive personalised advice to find the optimal solution for your situation. At nextsure, we are happy to assist you with a free review of your insurance situation and provide concrete optimisation suggestions. Request your personalised risk analysis now and benefit from our expertise in digital insurance solutions.
More useful links
Wikipedia provides a comprehensive overview of the no-claims bonus system in German car insurance.
GDV provides statistics on the business development of motor liability insurance in Germany.
GDV informs about potential billion-dollar losses for car insurers in 2024.
Die Verbraucherzentrale offers advice on how to save money on car insurance.
Die Verbraucherzentrale explains the car insurance obligation for vehicle owners in Germany.
Das Statistische Bundesamt (Destatis) provides statistical information on vehicle registrations in Germany.
Gesetze im Internet provides the German compulsory insurance law for vehicle owners (PflVG).
FAQ
What documents do I need to transfer a car insurance?
For the transfer, you usually need an application from the insurer, a waiver declaration from the previous policyholder, a copy of the driving license of the new policyholder, and possibly proofs of the family relationship as well as the insurer's consent.
Is it possible to transfer the no-claims bonus to non-relatives?
Generally, the transfer of the SF class is limited to close family members. Some insurers may allow exceptions, but this is rare and needs to be clarified on an individual basis.
What is the cost of taking over a car insurance policy?
The mere transfer of the contract or the SF class usually does not incur any direct fees from the insurance company. However, costs may arise when re-registering the vehicle at the registration office (around 20-30 euros).
Can I take over a car insurance policy in the event of a death?
Yes, in the event of death, close relatives (e.g. spouse, children) can take over the car insurance and often the SF class of the deceased. This must usually be applied for within twelve months after the death, and the death certificate must be presented.
Is it worthwhile for beginners to take over the SF class?
For absolute beginner drivers, taking over a high SF class often doesn't pay off, as they only receive credit for very few years and the rest is lost. It may be more sensible to gather a few years of driving experience on their own.
Can I transfer the acquired no-claims bonus to another insurance?
Yes, the acquired SF class can usually be carried over when changing to a new insurance provider. However, the new insurer is not obliged to grant the exact same discount rate.
