Transfer motor insurance no-claims discounts cleverly and reduce premiums
09.06.25
3
Minutes
Katrin Straub
Managing Director at nextsure
Would you like to save on your car insurance? Transferring no-claims bonus classes (SF classes) often offers significant savings of up to several hundred euros a year. Find out how to transfer your no-claims discount and avoid pitfalls.
The topic in brief and concise terms
Transferring 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 accumulated themselves since obtaining their driving licence.
The person transferring it irrevocably loses their no-claims bonus class and discount; a transfer back is not possible.
No-claims discount class transfer: Understanding the basics
The no-claims bonus class (SF class) reflects the number of years a policyholder has driven without an accident. The higher the SF class, the greater the no-claims discount, which can lead to a lower insurance premium of up to 70 per cent. Transferring this SF class, often referred to as "transferring percentages", allows another person to benefit from these accumulated accident-free years. This is particularly interesting for young drivers, who would otherwise start with a very low SF class and high premiums of often more than 100 per cent of the base premium. In general, the transfer is only possible once, and the person transferring it loses their discount permanently. This rule applies to motor third-party liability and comprehensive insurance; partial comprehensive insurance does not have SF classes.
Check the prerequisites for the successful transfer of no-claims bonus classes
Insurers make the transfer of no-claims bonus years subject to certain conditions, which often vary slightly. A basic requirement is usually a close family relationship or a shared household between the transferor and the recipient. Transfers between spouses, registered civil partners, parents and children, as well as grandparents and grandchildren, are common. What is often crucial is 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 themselves have earned since obtaining their driving licence. For example, if someone has held a driving licence for five years, they can only be credited with a maximum of five claim-free years, even if 30 years could be transferred. Transfer from parents is a common use case. Most insurers set a deadline for the transfer, often six to twelve months after the transferor’s policy ends.
Group of people: Who can transfer percentages to whom?
The ability to transfer no-claims bonus percentages on motor insurance is clearly defined and is aimed at close relationships. In most cases, a transfer is straightforwardly possible to:
Spouses or registered civil partners.
Children (biological, adopted or stepchildren).
Parents.
Grandparents and grandchildren, who often live in the same household.
Some insurers broaden this circle and also allow the transfer to siblings or parents-in-law, provided that a household exists or has existed. The exact rules vary, so a direct enquiry with the relevant insurer is essential. A transfer to friends or distant relatives is usually not предусмотрено. Transferring insurance to a child is common practice in order to give them a more favourable start. The transferring person must give written consent to the process and waive their discount.
Practical examples: When is the transfer really worthwhile?
Transferring insurance no-claims bonuses can bring significant financial advantages in various scenarios. A classic case is when parents transfer the no-claims class of their second car to their child, who already has several years of driving experience. Suppose the second car is in no-claims class ten (equivalent to ten claim-free years) and the child has held a driving licence for seven years. They could then take over no-claims class seven and would not start at no-claims class zero or half, which can mean savings of more than 50 per cent. Another example is a transfer from grandparents who give up driving for age-related reasons. If the grandfather has no-claims class 25 and surrenders his driving licence, his grandchild, who has been driving for ten years, can take over no-claims class ten. This can reduce the annual premium by several hundred euros. In the event of death, relatives can also take over the deceased person's no-claims class, often within a period of twelve months. A change of policyholder should be carefully considered. The transfer is final.
The transfer process: step-by-step guide
Transferring the no-claims bonus class requires a few formal steps and the approval of the current insurer. First, you should contact the insurer to ask about the specific conditions and required forms. The following documents and information are usually required:
An application for transfer of the SF class, often an insurer's form.
A waiver declaration from the transferring person, confirming that they irrevocably waive their SF class.
Proof of the relationship or household.
A copy of the recipient’s driving licence to prove how long they have held a driving licence.
If applicable, confirmation of the recipient’s regular use of the vehicle.
After submission of all documents, the insurer reviews the application. The processing time can take a few days to several weeks. It is advisable to start the process early, especially if a vehicle is to be newly registered or an insurance contract taken over. The exact SF class table provides information on the possible discounts.
Expert Depth: Legal Aspects and Pitfalls in Transferring Discounts
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 motor vehicle insurance conditions (AKB) of the respective insurer. An important point is that only the number of claim-free years (the SF class) is transferred, not the actual percentage of the discount. This can vary from one insurer to another, as the allocation of SF class to discount rate is determined individually. Our expert tip: clarify in advance with the recipient's new insurer how the transferred SF class will be classified there. A ruling by the Regional Court of Traunstein (NJW 04, 1463) states that a transfer made on the basis of knowingly false statements (e.g. about regular use) may be contrary to public policy and invalid. The deadline for a transfer after the old contract has ended is often only six to twelve months. If SF classes are transferred, this is a final process.
Transferring insurance no-claims years can offer savings potential, but it also has drawbacks that need to be carefully weighed up. The most serious disadvantage for the person giving up the years is the irreversible loss of their own no-claims bonus class and the associated discount. A transfer back is not possible. If the transferor later needs car insurance again themselves, they will usually start again with an unfavourable no-claims class, which can lead to premiums of over 100 per cent. Another point is that transferring to very young new drivers often makes little sense, as they can only have a few years recognised. If a new driver has had their driving licence for only one year, they can only take over no-claims class 1, even if no-claims class 30 is offered. It is also important to know that it is not the specific premium rate that is transferred, but only the number of claim-free years. The best no-claims bonus class only brings the maximum benefit if it can also be fully recognised. Think carefully about whether giving up your own discount in the long term outweighs the short-term benefit for the recipient.
Special cases in the transfer: death, divorce and company car
Besides the standard cases, there are special situations in which the transfer of percentages in motor insurance becomes relevant. In the event of the policyholder's death, close relatives, such as the spouse or children, can usually take over the no-claims bonus class within twelve months. A death certificate is generally required for this. In the event of a divorce, the division of the no-claims bonus class can become complicated, especially if both partners have used the vehicle. An amicable agreement is often the best solution here, with the person who continues to use the vehicle mainly being able to take over the no-claims bonus class, provided the other person agrees. The transfer of no-claims bonus classes from a company car to a privately owned car is also possible if the employer confirms that the employee has used the vehicle predominantly and without accidents. Our expert tip: document the usage history of company cars carefully to secure any future claims. For young drivers, it is important to understand the concept of the premium rate. The transfer of percentages is an important building block for optimising your insurance costs.
Conclusion: Make smart use of percentages and save in the long term
Transferring no-claims discounts in motor insurance is an effective way to reduce insurance costs, often by 30 to 50 per cent, particularly for family members with less driving experience. However, a careful review of the requirements and a weighing up of the advantages and disadvantages are essential. The irrevocable loss of the no-claims class for the person transferring it is a key factor. With the right planning and knowledge of the conditions, you can achieve significant savings. nextsure will be happy to support you in finding the optimal solution for your individual situation and in making the discount transfer process run smoothly. Use our expertise to ease your financial burden.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
The Verbraucherzentrale explains how you can save several hundred euros on motor insurance.
The Verbraucherzentrale RLP explains why it can be worthwhile to switch motor insurance providers.
The Verbraucherzentrale provides a PDF document with detailed consumer advice on motor insurance.
The GDV (Gesamtverband der Deutschen Versicherungswirtschaft) offers insights into the business development of motor third-party liability insurance.
The GDV provides statistics on the number of motor vehicles in Germany.
Statista presents data on premiums and benefits in motor insurance since 2000.
Wikipedia offers a comprehensive explanation of the no-claims discount.
The Gabler Wirtschaftslexikon provides a precise definition of the term no-claims discount.
The Deutsche Bundestag documents complaints received by BaFin due to disagreements with motor insurance providers.
FAQ
What are the most important requirements for transferring car insurance bonus percentages?
The most important requirements are usually a close relationship (e.g. parents, children, spouse) or a shared household, the consent of the transferor, their waiver of the SF class, and that the recipient has used the vehicle regularly and may only take over as many years as they have held a driving licence.
Will I lose my percentages if I transfer them?
Yes, if you transfer your no-claims class, you will permanently lose it and the associated discount. A transfer back is not possible.
Can I transfer more claim-free years than the recipient has had a driving licence?
No, the recipient can transfer at most as many no-claims years as he could have accumulated himself since obtaining his driving licence. If he has held the driving licence for 5 years, he can only transfer SF 5, even if SF 20 is transferred.
Is it worth transferring percentage points to a new driver?
It is only worthwhile to a limited extent. A new driver who has held a driving licence for a very short time (e.g. less than a year) can hardly transfer any no-claims years. The saving is then minimal.
Can I also transfer my no-claims bonus to my second car?
The transfer of percentages usually refers to passing them on to another person. For second cars, there are often special classifications that are cheaper than a new entry, but they do not directly represent a transfer from the first car in the sense of passing them on to third parties.
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 bonus class within a certain period (often 12 months). Relevant proof such as the death certificate is required for this.
