Cleverly transfer car insurance percentages and reduce premiums
9 Jun 2025
10
Minutes
Katrin Straub
CEO at nextsure
Do you want to save on your car insurance? Transferring no-claims classes (SF classes) often offers significant savings of up to several hundred euros annually. Discover how to transfer percentages and avoid pitfalls.
The topic in brief and concise terms
The transfer of no-claims bonus classes (SF-classes) can significantly reduce insurance costs, especially for close family members.
The recipient can only take over as many claim-free years as they could have achieved themselves since obtaining their driving license.
The person transferring their no-claims class and discount loses them irrevocably; a retransfer is not possible.
Understanding the Basics of No-Claims Bonus Transfer
The no-claims discount class (SF-Klasse) reflects the number of years a policyholder has driven without an accident. The higher the SF-Klasse, the greater the no-claims discount, which can lead to a reduction in insurance premiums of up to 70 percent. The transfer of this SF-Klasse, often referred to as "transferring percentages," allows another person to benefit from these accumulated accident-free years. This is especially appealing to young drivers, who would otherwise start with a very low SF-Klasse and high contributions often exceeding 100 percent of the basic premium. The transfer is generally only possible once and the donor permanently loses their discount. This arrangement applies to motor liability insurance and comprehensive cover; a partial comprehensive insurance does not recognise SF-Klassen.
Check the requirements for the successful transfer of SF classes
Insurers link the transfer of no-claims bonuses to certain conditions, which often vary slightly. A basic requirement is usually a close familial relationship or a household community between the transferor and the recipient. Transfers are common between spouses, registered partners, parents and children, as well as grandparents and grandchildren. It is often crucial that the recipient has already regularly used the transferor's vehicle. The recipient can also only take over as many claim-free years as they could have personally experienced since obtaining their driving license. For example, if someone has held a driving license for five years, they can only be credited with a maximum of five claim-free years, even if 30 years could be transferred. The transfer from parents is a common application. Most insurers set a deadline for the transfer, often six to twelve months after the termination of the transferor's contract.
Target group: Who can allocate percentages to whom?
The possibility of transferring percentages of car insurance is clearly defined and aimed at close relationships. In most cases, a transfer is easily possible to:
Spouses or registered civil partners.
Children (biological, adopted, or stepchildren).
Parents.
Grandparents and grandchildren, who often live in a household together.
Some insurers expand this group and allow transfers to siblings or parents-in-law, provided that a household community exists or existed. The specific regulations vary, so it is essential to directly inquire with the respective insurer. A transfer to friends or distant relatives is generally not intended. Transferring insurance to a child is a common practice to provide them with a more favourable start. The person giving up the discount must agree to the process in writing and forego their discount.
Practical Examples: When is transferring really worthwhile?
Transferring insurance percentages can offer significant financial advantages in various scenarios. A classic example is when parents transfer the no-claims discount of their second car to their child, who already has some years of driving experience. Suppose the second car is in no-claims discount class ten (equivalent to ten accident-free years), and the child has held their driving licence for seven years. They could then take on no-claims class seven, instead of starting at zero or one-half, potentially saving over 50 percent. Another example is when grandparents give up driving due to age. If the grandfather has a no-claims discount class of 25 and relinquishes his driving licence, his grandchild, who has been driving for ten years, can take over class ten. This can reduce the annual premium by several hundred euros. Even in the event of death, relatives can take over the deceased's no-claims discount, often within twelve months. An insurance policy change should be carefully considered. The transfer is final.
The Transfer Process: Step-by-Step Guide
Transferring the no-claims discount category requires several formal steps and the approval of the current insurer. First, you should contact the insurance company to inquire about the specific conditions and required forms. Generally, the following documents and information are necessary:
An application for transferring the no-claims discount category, often a form from the insurer.
A waiver from the person relinquishing their no-claims discount category, confirming they irrevocably give it up.
Proof of a familial relationship or domestic partnership.
A copy of the recipient's driving licence to verify the length of licence ownership.
If applicable, confirmation of the regular use of the vehicle by the recipient.
After submitting all documents, the insurer reviews the application. The processing time can take several days to a few weeks. It is advisable to start the process early, especially if registering a new vehicle or taking over an insurance contract. The precise no-claims discount category table provides information on potential discounts.
Expert Depth: Legal Aspects and Pitfalls of Discount Transfer
Although the transfer of no-claims discounts is common practice, there is no legal obligation for insurers to agree to a transfer. The terms are based on the General Terms and Conditions for Motor Vehicle Insurance (AKB) of the respective insurer. An important point is that only the number of claim-free years (the SF class) is transferred, not the specific percentage of the discount. This can vary with each insurer, as the assignment of SF class to discount rate is determined individually. Our expert tip: Clarify in advance with the new insurer of the recipient how the transferred SF class will be assessed there. A judgment by the LG Traunstein (NJW 04, 1463) states that a transfer made with knowingly false information (e.g., about regular use) can be deemed immoral and invalid. The deadline for the transfer after the termination of the old contract is often only six to twelve months. Once SF classes are transferred, it is a final process.
Disadvantages and Risks: Essential Considerations
The transfer of insurance percentages does offer savings potential but also entails disadvantages that need careful consideration. The most significant drawback for the person transferring is the irrevocable loss of their own no-claims bonus and the associated discount. A retransfer is not possible. If the transferor requires a car insurance again later, they will generally start again with an unfavourable no-claims class, which can lead to premiums of over 100 per cent. Another point is that a transfer to very young novice drivers often makes little sense, as they can only credit a few years. If a beginner has only had their driving licence for a year, they can only take over a no-claims class of one, even if no-claims class 30 is offered. It is also important to know that it is not the actual premium rate that is transferred, but only the number of claim-free years. The best no-claims class only brings the maximum advantage if it can be fully credited. Consider carefully whether the long-term waiver of your own discount outweighs the short-term benefit for the recipient.
Special cases in transfer: Death, divorce, and company car
Conclusion: Use percentages smartly and save in the long term
More useful links
The consumer advice centre provides information on how to save several hundred euros on car insurance.
The consumer advice centre RLP explains why switching car insurance can be worthwhile.
The consumer advice centre offers a PDF document with detailed consumer tips on car insurance.
The GDV (German Insurance Association) provides insights into the business development of motor liability insurance.
The GDV delivers statistics on the vehicle stock in Germany.
Statista presents data on contributions and benefits in motor insurance since the year 2000.
Wikipedia offers a comprehensive explanation of the no-claims discount.
The Gabler Business Dictionary provides a precise definition of the term no-claims discount.
The German Bundestag documents complaints submitted to BaFin due to disagreements with car insurers.
FAQ
What are the key requirements for transferring percentages of car insurance?
The main requirements are usually a close relationship (e.g., parents, children, spouses) or household community, the consent of the person transferring, their waiver of the SF class, and that the recipient has regularly used the vehicle and can only take over as many years as they have held a driving licence.
Will I lose my percentage if I transfer it?
Yes, if you transfer your no-claims bonus class, you will lose it and the associated discount permanently. It's not possible to transfer it back.
Can I transfer more claim-free years than the recipient has had their driving licence?
No, the recipient can only take over as many claim-free years as they could have accumulated themselves since obtaining their driving licence. If they have had their licence for 5 years, they can only take over SF 5, even if SF 20 are being transferred.
Is it worthwhile to transfer percentages to a beginner driver?
It's only worthwhile to a limited extent. A novice driver with a very short period of driving license ownership (e.g., less than a year) can hardly take over any claim-free years. The savings are then minimal.
Can I also transfer the discounts to my second car?
The transfer of percentages usually refers to passing them on to another person. For second cars, there are often special lower classifications that are more favourable than starting fresh, but do not directly represent a transfer from the first car in the sense of passing it on to a third party.
What happens to the percentages in the event of death?
In the event of the policyholder's death, close relatives (e.g., spouse, children) can usually take over the no-claims discount within a certain period (often 12 months). Appropriate documentation, such as the death certificate, is required for this.
