Optimise SF Classes Insurance: Reduce Premiums and Utilise Benefits
3 May 2025
10
Minutes
Katrin Straub
CEO at nextsure
Your no-claims class (SF class) is a crucial factor in determining your car insurance premium. With each year without an accident, you move up in the SF class and your premium decreases. This article explains how the system works and how you can make the most of your SF class insurance.
The topic in brief and concise terms
The no-claims bonus (SF class) rewards accident-free driving with lower insurance premiums in motor liability and comprehensive coverage.
After a self-inflicted accident, there is a downgrade to a lower SF class, which leads to higher premiums.
SF classes can be transferred within the family under certain conditions, with the recipient only receiving the years they could have experienced themselves.
SF Class Insurance: Understanding the Foundation of Your Premium
The no-claims class, abbreviated as SF class, reflects the number of your claim-free years as a policyholder. Each calendar year in which you are insured for at least six months and do not report any damages results in an upgrade. Insurers use the SF class to assess your individual accident risk and calculate your premium rate accordingly. A higher SF class means a higher no-claims discount (SFR), and thus a more affordable car insurance. The SF classes usually range from SF 0 for beginner drivers to SF 35 or even SF 50 for drivers with a very long accident-free history. Each insurer determines the exact premium rates and discount tiers individually. You can find your current SF class on your annual contribution statement. This system is a central tool for actively managing your insurance costs.
The mechanics of the SF classes: Promotion and relegation in detail
Moving up to a higher SF class generally occurs annually, provided you haven't reported any damage in the previous year that your insurance had to settle. A year without accidents means an improvement by one SF class, for example from SF 5 to SF 6. However, if there is an accident for which you are responsible and your car liability or comprehensive insurance covers it, there will be a downgrade. How many classes you fall back depends on the specific downgrade table of your insurer and the number of reported claims. Even a single claim can lead to a significant downgrade by several classes. For instance, a driver might fall back from SF 25 to SF 10 after a claim. The exact regulations on this can be found in the General Terms and Conditions for Motor Insurance (AKB) of your contract. By the way, there are no SF classes for comprehensive insurance because it covers damage that you as a driver usually have no control over, such as theft or hail damage. Understanding this dynamic is crucial to avoid unpleasant surprises.
SF class chart: Understand your discount clearly
Every insurer has its own SF class table, which illustrates the relationship between the number of claim-free years, the SF class, and the contribution rate (as a percentage of the basic premium). Here is an example of what such a table might look like:
SF 1 (one claim-free year): Contribution rate approximately 50-70 percent
SF 5 (five claim-free years): Contribution rate approximately 35-45 percent
SF 10 (ten claim-free years): Contribution rate approximately 30-35 percent
SF 20 (twenty claim-free years): Contribution rate approximately 20-25 percent
SF 35 (thirty-five claim-free years): Contribution rate approximately 15-20 percent
Please note that these are only approximate values and actual percentages may vary by provider. New drivers often start in SF 0 or SF ½, which is associated with significantly higher contribution rates. The penalty class (SF M) is the least favourable and most expensive class, which you can fall back to after multiple claims or a claim in a low SF class. Looking into your insurer’s specific table will provide clarity about your individual discount.
Case Studies: How the SF-Class Affects Everyday Life
Imagine Mr Miller has been driving accident-free for ten years and is classified in SF class 10, which corresponds to a premium rate of, for example, thirty percent. If he now causes an accident, depending on his insurer's de-escalation table, he could fall back to SF 4 (premium rate e.g. forty-five percent). This would mean a noticeable increase in his annual premium. Another example: Ms Smith, a beginner driver, starts in SF 0 with a premium rate of perhaps eighty percent. If she drives accident-free for a year, she moves up to SF 1 and her premium rate drops to about sixty percent. These examples illustrate the direct financial impact of the SF class. Therefore, it is advisable to possibly pay for minor damages yourself to avoid de-escalation and thus long-term higher premiums. A precise calculation is always recommended before reporting a claim.
Improve SF class: Strategies for lower contributions
The most obvious method to improve your no-claim bonus class is accident-free driving over several years. In addition, there are other options: Many insurers offer what is known as a no-claims discount protection. This paid additional module prevents a downgrade after the first self-inflicted claim per year. However, this protection often only applies with the current insurer and may not necessarily be recognised when switching. Another option is the claims buyback: You can repay the cost of a settled claim to the insurer within a specific period (often six months) to reverse the downgrade. This is particularly worthwhile for smaller claims, where the costs are lower than the additional burden of higher premiums over the next few years. For beginner drivers, the parents' second car rule can be an option to avoid starting in the expensive SF 0 class. These strategies help you actively optimise your no-claim bonus insurance class.
Transfer SF class: Extend discounts to family
Under specific conditions, you can transfer your accrued no-claims bonus to another person. This is often possible within the family, for instance, from parents to children or between spouses. However, the person taking over can only accrue as many claim-free years as they could have accumulated since obtaining their driving licence. For example, if the father has a no-claims bonus of 30 years and the daughter has had a driving licence for five years, she can take over a maximum of five years. The remaining twenty-five years are forfeited in this case. The transfer is irrevocable; the original holder loses their no-claims bonus permanently. The following points are often relevant when transferring a no-claims bonus:
Relationship or cohabitation.
Regular use of the vehicle by the recipient (depending on the insurer).
The recipient holds a valid driving licence.
Written waiver from the transferor.
Submit an application to the insurer.
A transfer of the no-claims bonus can provide significant financial relief, especially for young drivers. Make sure you understand the terms set by your insurer before taking this step.
Special Regulations and Expert Tips on SF Class Insurance
Besides the standard regulations, there are a few special situations and expert tips regarding the SF class insurance. When switching insurers, your SF class is typically adopted by the new provider, unless special classifications were in place. However, the percentages can vary. For second cars, there are often special second car arrangements that allow for a more favorable classification than SF 0, often SF ½ or even better, depending on the SF class of the first car. Our expert tip: With some insurers, you can reactivate your old SF class after a long contract pause (e.g., seven to ten years), especially relevant if you haven't owned a vehicle for several years. Also check if your insurer offers special classifications for certain occupational groups or after completing a driver safety training. Such details can further reduce your premium and should be considered when choosing your SF class insurance.
Optimize SF class for beginner drivers and new license holders
Check your individual situation and ensure optimal protection
More useful links
Wikipedia provides a comprehensive overview of the no-claims discount in German motor insurance.
The Federal Statistical Office (Destatis) offers current statistics on traffic accidents in Germany.
The German Insurance Association (GDV) provides detailed statistics on business development in motor vehicle liability insurance.
The Consumer Advice Centre gives valuable tips on how you can save on your car insurance.
The Federal Ministry of Finance provides information about insurance and fire protection tax.
The Federal Motor Transport Authority (KBA) provides statistics on the vehicle fleet in Germany.
The Deutsche Bundesbank publishes reports on financial stability.
FAQ
How is my SF class calculated?
Your SF rating class generally corresponds to the number of full calendar years in which you have driven without causing any accidents and your vehicle was insured for at least six months of the year. New drivers often start at SF 0 or SF ½.
What happens to my SF class when I change insurance?
Your achieved SF class is usually adopted by the new insurer when you switch insurance. However, special classifications or any used discount protection are often not taken into account, with the actual claims record being what matters.
What no-claims discount class do I have as a novice driver?
Drivers who have held their driving licence for less than three years usually start in SF-Class 0. Those who have had their driving licence for more than three years often begin in SF-Class ½.
Can I use the SF class of my motorcycle for my car?
Yes, transferring the no-claims years from a motorcycle to a car is generally possible. The actual years driven without claims are credited, not necessarily the no-claims bonus classification itself.
How long does an SF class remain valid if I haven't insured a car?
The validity period of an SF class during a contract interruption varies. Many insurers still recognise an SF class even after a break of seven to ten years. At AdmiralDirekt, for example, it is up to twelve years.
Does a partial coverage claim affect my no-claims class?
No, damage covered by the partial comprehensive insurance (e.g., glass breakage, wildlife accident without personal fault) does not lead to a downgrade of the SF class. SF classes only apply to motor vehicle liability and fully comprehensive insurance.
