Taking over your parents’ car insurance: save money and make smart use of your no-claims bonus
07.04.25
12
Minutes
Katrin Straub
Managing Director at nextsure
New drivers often pay high premiums for car insurance. One way to reduce these costs is to take over your parents’ insurance policy or no-claims bonus (SF class). Find out how you can benefit from this and what you need to bear in mind.
The topic in brief and concise terms
Young drivers can save up to sixty per cent on car insurance by taking over their parents’ no-claims bonus. [.___2]
The number of transferable claim-free years is limited to the length of time you have held your driving licence. [.___2,.___1]
The transfer of the no-claims bonus class is final; the transferring parent permanently loses the discount. [.___4,.___1]
Successfully transferring your no-claims bonus from your parents: understanding the basics
Taking over the no-claims class (SF class) from parents is a popular way for young drivers to save significantly on car insurance. [.___4] The longer you drive without an accident, the higher the SF class rises and the contribution rate falls by up to eighty per cent. [.___6] What is transferred are the claim-free years, not the actual discount in per cent, as this varies depending on the insurer. [.___5] This option is particularly attractive if parents no longer need their insurance policy, for example when they stop driving for age-related reasons or give up a second car. [.___3] Careful review of the conditions is crucial here for maximum savings.
Master the conditions for transferring your no-claims bonus class
To take over the parents’ no-claims class, certain requirements must be met. The most important rule is: only as many claim-free years can be transferred as the recipient could themselves have accumulated since obtaining their driving licence. [.___2,.___3] For example, if someone has had a driving licence for three years, they can also only take over a maximum of three claim-free years, even if the parents have no-claims bonus class 20. [.___1] Many insurers also require that the recipient has regularly used the parents’ vehicle. [.___3] Another condition is often a family relationship or a shared household. [.___1] The transfer is usually possible to children, grandchildren, spouses or life partners. [.___4] A transfer of the percentage points is therefore subject to clear rules.
Step by step: Transfer the no-claims bonus class from your parents
Transferring the no-claims bonus class from the parents to the child requires a few steps and documents. First, an application must be submitted to the insurer that is passing on the discount. [.___5] The following documents and information are typically required:
Vehicle and policy details of the transferring parent.
A declaration of waiver by the parent regarding the SF class. [.___1]
Vehicle and policy details of the child (recipient).
A copy of the child's driving licence. [.___1]
A declaration of the family relationship. [.___1]
Signatures of both parties. [.___1]
Once approved by the insurer, the child can use the transferred SF class for their own policy. [.___1] It is advisable to check the exact terms and conditions with the respective relevant insurer early on.
Weigh up the pros and cons of the takeover
Taking over car insurance from their parents offers considerable financial advantages for young drivers. [.___2] With a higher no-claims class, annual premiums can fall by up to sixty per cent. [.___2] This is a clear advantage compared with starting in an expensive beginner class such as SF 0. [.___3] However, there are also disadvantages: the person transferring it loses their SF class irrevocably. [.___4,.___1] A transfer back is not possible. [.___4] This step should therefore be considered carefully, especially if the parents may still need the discount themselves. For young drivers, the advantages usually outweigh the drawbacks.
Optimising special cases and expert tips for discount transfer
There are special situations in which the transfer of the SF class from parents becomes particularly relevant. If a parent dies, heirs can take over the SF class within a period of usually twelve months. [.___1,.___2] The death certificate must be submitted for this purpose. [.___2] The transfer is also common practice when a second car is given up. [.___3] Our expert tip: Always clarify with your insurer in advance whether a special classification, as is sometimes granted for second cars, can be transferred, as this is not always the case. [.___2] A second car insurance can offer alternative savings potential. The exact regulations may vary between insurers, so individual advice is always recommended.
Maximising the role of driving experience and holding a driving licence
The length of time you have held your driving licence is a decisive factor when taking over the no-claims class. [.___2] As mentioned above, a child can only take over the number of claim-free years they could themselves have accumulated since obtaining their driving licence. [.___1] For complete new drivers, taking over a very high no-claims class is therefore often only of limited benefit, as with zero years of driving experience, for example, they could only take over no-claims class 0 or ½. [.___2] However, some insurers offer special new driver rates or take accompanied driving from age 17 into account positively. [.___3] It is important that the young driver has actually been driving the vehicle regularly, whose no-claims class is to be transferred; many insurers state this as a condition. [.___3,.___1] Early listing as a driver in the parents' policy can be helpful here.
The transfer of a no-claims bonus class is a courtesy offered by insurers and not a legal requirement. [.___4] The exact conditions are therefore set out in the respective insurer’s policy terms. The SF class can be transferred for motor third-party liability and comprehensive insurance; there are no SF classes for partial comprehensive cover. [.___5,.___6] A power of attorney may be required, for example if parents are to handle insurance matters for their adult children. [.___1] It should also be noted that once an SF class has been transferred, it is lost to the donor. [.___2] A careful review of the provider’s SF class table helps to understand the implications. Careful coordination and gathering all the information are essential before making a decision.
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More useful links
Wikipedia offers comprehensive information on the no-claims bonus class (SF class) in motor vehicle insurance.
Laws on the Internet provides the German Act on Compulsory 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 shared household or at least a close family relationship. However, the exact conditions vary. It is advisable to clarify this directly with the insurer. [.___3,.___1]
What happens to my no-claims discount class if my parents give up their second car?
If your parents give up the second car and no longer need the relevant no-claims bonus class, they can transfer it to you provided the conditions are met. [.___3]
Can I also take over only part of my parents' no-claims bonus class?
No, in general the entire available no-claims bonus class (up to the maximum possible number of your own years of driving experience) is transferred. The transferring parent then fully relinquishes this no-claims bonus class. [.___4]
Is there a deadline for transferring the no-claims bonus class after the death of a parent?
Yes, heirs can usually transfer the no-claims bonus 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 to transfer my no-claims bonus class?
Typically, you will need a waiver statement from the transferring party, copies of the driving licences, vehicle and contract details, as well as a declaration of the relationship. [.___1]
Can I keep the transferred no-claims bonus class when changing insurers?
Yes, a no-claims bonus class that has once been lawfully transferred and experienced by you yourself can usually also be taken to a new insurer. Special classifications are sometimes excluded from this. [.___3]
