Taking over car insurance from parents: Save costs and cleverly use no-claims bonus
7 Apr 2025
6
Minutes
Katrin Straub
CEO at nextsure
Young drivers often pay high premiums for car insurance. One way to reduce these costs is by taking over the insurance or the no-claims discount (NCD) from the parents. Find out how you can benefit from this and what you need to consider.
The topic in brief and concise terms
Young drivers can save up to sixty percent on car insurance by taking over their parents' SF class. [.___2]
The number of transferable no-claims years is limited to the duration of your own driving licence ownership. [.___2,.___1]
The transfer of the SF class is final; the transferring parent permanently loses the discount. [.___4,.___1]
Successfully taking over parental no-claims class: Understanding the basics
Transferring the no-claims discount (NCB) from parents is a popular method for young drivers to significantly save on car insurance. [.___4] The longer you drive accident-free, the higher the NCB rises, reducing the premium by as much as eighty percent. [.___6] It is the claim-free years that are transferred, not the specific discount percentage, as this can vary between insurers. [.___5] This option is particularly attractive when parents no longer need their insurance policy, for instance, due to giving up driving for age-related reasons or surrendering a second vehicle. [.___3] Carefully reviewing the conditions is crucial to maximise savings.
Mastering the conditions for transferring the SF class
To adopt the parents' no-claims bonus class, certain conditions must be met. The most important rule: Only as many claim-free years can be transferred as the recipient could have accumulated since obtaining their driving licence. [.___2,.___3] For example, if someone has had their driving licence for three years, they can only take over a maximum of three claim-free years, even if the parents are in no-claims class 20. [.___1] Many insurers also require that the recipient has regularly used the parents' vehicle. [.___3] Another common condition is the requirement of a familial or domestic relationship. [.___1] Transfers are generally possible to children, grandchildren, spouses, or life partners. [.___4] A transfer of the percentage is thus subject to clear rules.
Step-by-step: Transfer SF class from parents
The transfer of the no-claims bonus from parents to their child requires several steps and documents. First, an application must be submitted to the insurance company that is giving up the discount. [.___5] The following documents and information are typically necessary:
Vehicle and contract details of the relinquishing parent.
A declaration of waiver from the parent regarding the no-claims bonus. [.___1]
Vehicle and contract details of the child (recipient).
A copy of the child's driving licence. [.___1]
A statement of the family relationship. [.___1]
Signatures of both parties. [.___1]
After approval by the insurance company, the child can use the acquired no-claims bonus for their own contract. [.___1] It is advisable to find out early about the exact terms from the respective insurer.
Weighing the Pros and Cons of the Acquisition
Taking over the car insurance from the parents offers significant financial advantages for young drivers. [.___2] With a higher SF class, the annual premiums can decrease by up to sixty percent. [.___2] This is a clear benefit compared to starting in an expensive beginner class like SF 0. [.___3] However, there are also drawbacks: the person transferring the SF class loses it irrevocably. [.___4,.___1] A retransfer is not possible. [.___4] Therefore, this step should be carefully considered, especially if the parents might still need the discount themselves. For junge Fahrer outweigh the advantages.
Special Cases and Expert Tips for Optimising Discount Transfer
There are special situations where the transfer of the SF class from parents becomes particularly relevant. If a parent passes away, heirs can take over the SF class within a period of usually twelve months. [.___1,.___2] A death certificate must be presented for this purpose. [.___2] Transferring is also a common practice when giving up a second car. [.___3] Our expert tip: Always check with your insurer in advance whether a special classification, which is sometimes granted for second cars, is transferable, as this is not always the case. [.___2] A second car insurance can offer alternative savings potential. The exact regulations can vary between insurers, so individual advice is always recommended.
Maximising the role of driving experience and licence ownership
The duration of holding a driving licence is a crucial factor in adopting the SF class. [.___2] As mentioned earlier, a child can only inherit the number of claim-free years that it could have achieved since obtaining its driving licence. [.___1] For absolute beginners, taking on a very high SF class is often only marginally beneficial, as they could only adopt SF class 0 or ½, for example, having zero years of driving experience. [.___2] However, some insurers offer special beginner driver tariffs or positively consider accompanied driving from the age of 17. [.___3] It is important that the young driver has actually been driving regularly with the vehicle, the SF class of which is to be transferred; this is a condition mentioned by many insurers. [.___3,.___1] An early registration as a driver on the parents' policy can be helpful here.
Pay attention to legal aspects and contract details
The transfer of a no-claims class is a gesture of goodwill by insurers and not a legal obligation. [.___4] Therefore, the precise conditions are outlined in the insurer's contract terms. The no-claims class is transferred for both motor liability and comprehensive insurance; for partial coverage, there are no classes. [.___5,.___6] A power of attorney may be required, for example, if parents need to manage insurance matters for their adult children. [.___1] It should also be noted that once a no-claims class is transferred, it is lost for the giver. [.___2] A thorough examination of the no-claims class table of the respective provider helps to understand the implications. Careful coordination and obtaining all necessary information are essential before making a decision.
Request an individual risk analysis now: Have your insurance status checked for free and receive specific optimisation suggestions.
More useful links
Wikipedia provides comprehensive information on the no-claims discount class (SF-Klasse) in motor vehicle insurance.
Gesetze im Internet provides the German law on obligatory insurance for motor vehicles (PflVG).
FAQ
Can I take over my parents' car insurance even if I no longer live at home?
Many insurers require a domestic partnership or at least a close family relationship. However, the exact conditions vary. It is advisable to clarify this directly with the insurance company. [.___3,.___1]
What happens to the no-claims class if my parents give up their second car?
If your parents give up their second car and no longer need the existing SF class for it, they can transfer it to you, provided the conditions are met. [.___3]
Can I also take over only part of my parents' SF class?
No, generally the entire available SF class (up to the maximum possible based on your own driving experience) is transferred. The parent transferring the class then completely forfeits this SF class. [.___4]
Is there a deadline for transferring the SF class after the death of a parent?
Yes, heirs can usually transfer the SF class of a deceased person within six to twelve months after the death. The exact deadline should be checked with the insurer. [.___1,.___2]
What documents do I need for the transfer of the SF class?
Typically, you will need a waiver from the transferring party, copies of driving licenses, vehicle and contract details, as well as a statement regarding the relationship. [.___1]
Can I carry over the acquired SF class when switching insurance providers?
Yes, once a legally transferred and personally experienced SF class is established, you can generally take it with you to a new insurer. Special classifications are sometimes exempt from this. [.___3]
