Transfer car insurance to your child: save money and secure benefits
27.05.25
12
Minutes
Katrin Straub
Managing Director at nextsure
Is your child starting out as a driver and about to take out their first car insurance policy? Find out how transferring your no-claims bonus can give your child a financial advantage and help you avoid high novice premiums. A well-planned transfer can reduce insurance costs by hundreds of euros per year.
The topic in brief and concise terms
Transferring the no-claims bonus (SF class) from parents or grandparents to children can significantly reduce motor insurance premiums for young drivers.
The prerequisite is usually a close family relationship and that the child can only take over as many no-claims years as it could have accumulated itself since obtaining its driving licence.
The transferring party irrevocably loses their no-claims bonus class; the transfer should therefore be carefully considered and only carried out if the no-claims bonus class is no longer needed.
Transferring your no-claims class: understanding the basics and recognising potential
Transferring a no-claims bonus class (SF class) is a common way to make it financially easier, especially for young drivers, to take out their own car insurance. In this process, the previous holder of an SF class passes on the discounts they have accumulated over years without claims to another person. This can reduce the annual insurance premium by up to 70 per cent. The SF class itself, that is, the number of claim-free years, is transferred, not the specific percentage discount, as this can vary from insurer to insurer. This arrangement applies to third-party car insurance and comprehensive insurance; partial comprehensive insurance does not have SF classes. The option of transferring car insurance to a child is therefore a valuable tool for optimising costs. The exact conditions for such a transfer are set individually by each insurer, so early clarification with the provider is essential. This first step lays the foundation for significant savings over many years.
Check requirements: Who can receive no-claims bonus classes and what conditions apply?
Not everyone can take over SF classes indefinitely. A key condition is that the recipient is only credited with as many claims-free years as they could themselves have accumulated since obtaining their driving licence. If your child has had a driving licence for three years, for example, they can transfer at most an SF class equivalent to three claims-free years, even if you want to give up SF 30. For complete novice drivers, the transfer therefore often only makes limited sense, if at all. The transfer is generally restricted to a certain group of people. This usually includes close family members such as spouses, registered partners, children, parents, grandparents and grandchildren. Some insurers also allow the transfer to siblings or people who live in the same household. Another common requirement is that the child has regularly used the vehicle whose SF class is to be transferred. Find out about the details of taking over car insurance to ensure that all criteria are met. Careful review of these points is crucial to the success of the transfer.
The transfer process: step by step to a more affordable policy for your child
The process of transferring an SF class is clearly structured, but it does involve some formalities. First, as the transferring party, you must submit an application to your motor insurance provider. Many insurers provide special forms for this purpose, sometimes also referred to as TB28. In this application, you declare that you waive the SF class in favour of your child. HUK-Coburg, for example, states that it no longer requires a printed form; the application is submitted online. The following documents and details are typically required:
Vehicle and contract details of the transferor and the recipient.
A declaration of waiver from the transferor.
A copy of the recipient’s driving licence.
A declaration of the family relationship.
Signatures of both parties.
After review and approval by the insurer, the SF class is transferred to the child’s policy. This can also happen in the event of a change of policyholder. Please note that the transfer is usually final, meaning you will lose your SF class. Careful consideration in advance is therefore important.
Special cases and details: What to consider for second cars, company cars and in the event of death
In addition to the direct transfer from parents to children, there are some special situations. For example, if you have a second car, its no-claims bonus class can often be transferred separately to your child without affecting the no-claims bonus class of your first car. This is a popular option if the child already uses the second car frequently anyway and is now to insure it themselves. The insurance for young drivers can therefore be arranged at a significantly lower cost. Another special case concerns company cars. If you have driven a company car for years without an accident, it may be possible to transfer the no-claims bonus class to a private policy, provided this was agreed in advance with the employer and their insurer. Without such an agreement, the no-claims bonus class for the company car lapses when you change over. In the sad event of the policyholder's death, heirs may be able to take over the no-claims bonus class under certain conditions, usually on presentation of the death certificate. This is relevant if you want to take over motor insurance in the event of death. These special constellations require a thorough review of the respective policy terms and conditions.
Weighing up costs and benefits: When does the transfer really pay off?
Transferring an SF class is not the best solution in every situation. The main advantage is the significant reduction in insurance costs for the child. New drivers often start in the expensive SF class 0 or SF ½, which can lead to annual premiums of more than one thousand euros. By taking over a higher SF class, for example SF 5, these costs can fall by more than half. The disadvantage for the person transferring it is the irreversible loss of their own SF class. A transfer back is generally not possible. For this reason, the transfer should only be made if you are sure you will no longer need the SF class yourself, for example because you are giving up driving or giving up the second car. An alternative for keeping costs for new drivers low can be to register the vehicle as the parents’ second car, with the child listed as the driver. This allows the child to gain driving experience and may later be able to take over the SF class of the second car. A detailed calculation and professional advice can help you make the best financial decision.
Expert tips for the optimal transfer of no-claims bonus classes
To optimise the process of transferring your motor insurance to your child, please note the following expert advice. Our expert tip: Clarify the exact conditions and deadlines with your insurer at an early stage. Some insurers allow an SF class to be transferred up to seven or even ten years after the contract ends. Compare offers from different insurers, as the level of the discount can vary even for the same SF class. It is possible to take the transferred SF class with you to a new insurer. Document the child's regular use of the vehicle if this is a requirement of your insurer. Check whether a transfer from a motorcycle to a car is possible, if relevant; there are often special conversion rules here. If the child was not listed as a driver, this may make the transfer more difficult. Comprehensive advice, such as that offered by nextsure, can help identify individual solutions and ensure that you make full use of all benefits. This will help ensure that the transfer goes smoothly and that your child benefits to the maximum.
When transferring a no-claims discount class, there are also legal aspects to consider in order to avoid problems later on. The waiver declaration by the transferring party is a legally binding document. By doing so, you confirm the final loss of your no-claims class. There is no legal obligation for insurers to transfer a no-claims class; it is a goodwill service, and the insurer sets the conditions. Make sure that all details in the transfer application are correct and complete to avoid delays or rejections. The transfer only affects motor liability and comprehensive insurance. There is no no-claims class for partial cover, and therefore no possibility of transfer. If the child causes an accident after taking over the policy, the no-claims class will be downgraded on the basis of the new contract. A prior takeover of the car insurance from the parents should take all of these points into account. Transparent communication with the insurer about all details protects against unexpected consequences.
Long-term planning: How your child can build their own positive claims record
Even though transferring the SF class enables a good start, it is important for your child to build up their own positive claims record in the long term. Each accident-free year on their own policy leads to a better rating and thus to lower premiums in the future. Even if a high SF class was initially transferred, from then on it is the child’s own driving behaviour that counts. A single at-fault accident can lead to a significant downgrading and wipe out the savings. Encourage your child to drive in a forward-thinking and safe manner. Some insurers offer special rates for young drivers, for example by granting additional discounts for taking part in driver safety training. In the long term, the aim is for your child to achieve their own high SF class and benefit from favourable terms, regardless of the class originally transferred. The insurance options for young drivers are continually evolving. Continuous monitoring of the insurance market is therefore advisable.
More useful links
Wikipedia offers a comprehensive overview of motor vehicle liability insurance, its fundamentals and legal aspects.
FAQ
What exactly is transferred to the child in car insurance?
Is transferring the no-claims bonus class always worthwhile?
Not always. A transfer makes sense if the person transferring no longer needs the SF class (e.g. when giving up a vehicle). For the child, it can mean significant savings. However, it is hardly worthwhile for complete novice drivers, as only a few years can be credited. The person transferring loses their SF class permanently.
Can I transfer the no-claims discount from my second car to my child?
Yes, this is often possible. The no-claims bonus class of the second vehicle can usually be transferred separately without affecting the no-claims bonus class of your first vehicle. This is a common way to help children start their insurance at a lower cost.
What happens to my no-claims class after I transfer it?
If you transfer your SF class, you lose it permanently. A transfer back is usually not possible. If you register a vehicle again, you would be classified with a low SF class (e.g. SF 0 or SF ½), unless you still have another policy with its own SF class.
How do I apply to transfer the no-claims bonus class?
You must submit an application to your own car insurance provider or the transferor’s motor insurance provider. Many insurers have special forms for this (often referred to as a no-claims bonus transfer or waiver declaration). Both parties (transferor and recipient) usually have to agree and sign.
