Optimising insurance no-claims bonus classes: lower premiums and make the most of benefits
03/05/25
12
Minutes
Katrin Straub
Managing Director at nextsure
Your no-claims class (SF class) is a decisive factor in the amount of your car insurance premium. With each accident-free year, you move up to a higher 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 class (SF class) rewards claim-free driving with lower insurance premiums for motor third-party liability and comprehensive cover.
After an accident caused by you, you are downgraded to a lower claims-free 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 accrued themselves.
SF classes in insurance: understanding the basis of your premium
The no-claims bonus class, or SF class for short, reflects the number of claim-free years you have as an insurance policyholder. Each calendar year in which you are insured for at least six months and do not make a claim results in a higher class. 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 (NCD) and therefore cheaper car insurance. SF classes usually range from SF 0 for new drivers to SF 35 or even SF 50 for drivers with many years of claim-free driving. Each insurer sets the exact premium rates and discount tiers individually. You can find your current SF class on your annual premium statement. This system is a key lever for actively shaping your insurance costs.
The mechanics of SF classes: promotion and demotion in detail
Advancement to a higher no-claims class usually takes place annually, provided you did not report any claim in the previous year that your insurer had to settle. A claim-free year means an improvement by one no-claims class, for example from SF 5 to SF 6. However, if you have an at-fault accident covered by your motor third-party liability or comprehensive insurance, you will be downgraded. How many classes you fall back depends on your insurer's respective downgrade table and the number of claims reported. Even a single claim can lead to a significant downgrade by several classes. For example, a driver can fall from SF 25 to SF 10 after a claim. You can find the exact provisions on this in the General Motor Insurance Conditions (AKB) of your policy. Incidentally, there are no SF classes for comprehensive cover, as it covers damage over which you as the driver usually have no influence, such as theft or hail damage. Understanding this dynamic is crucial to avoid unpleasant surprises.
SF class table: understand your discount in detail
Each insurer has its own SF class table, which shows the relationship between the number of claim-free years, the SF class and the premium rate (as a percentage of the base premium). Here is an illustrative extract of what such a table might look like:
SF 1 (one claim-free year): premium rate approx. 50-70 per cent
SF 5 (five claim-free years): premium rate approx. 35-45 per cent
SF 10 (ten claim-free years): premium rate approx. 30-35 per cent
SF 20 (twenty claim-free years): premium rate approx. 20-25 per cent
SF 35 (thirty-five claim-free years): premium rate approx. 15-20 per cent
Please note that these are only approximate values and the actual percentages vary depending on the provider. Novice drivers often start in SF 0 or SF ½, which is associated with significantly higher premium rates. The malus class (SF M) is the least favourable and most expensive class, into which you can fall back after several claims or after a claim in a low SF class. A look at your insurer’s specific table will clarify your individual discount.
Practical examples: How the no-claims bonus class affects everyday life
Imagine Mr Müller has been driving claim-free for ten years and is rated in SF class 10, which corresponds to a contribution rate of, for example, thirty per cent. If he then causes an accident, depending on his insurer's downgrade table he could fall back to SF 4 (contribution rate, for example, forty-five per cent). This would mean a noticeable increase in his annual premium. Another example: Ms Schmidt, a new driver, starts in SF 0 with a contribution rate of perhaps eighty per cent. If she drives claim-free for one year, she moves up to SF 1 and her contribution rate falls to around sixty per cent. These examples illustrate the direct financial impact of the SF class. It is therefore advisable to pay for minor damage yourself if necessary in order to avoid a downgrade and thus higher premiums in the long term. A precise calculation is always recommended here before you report a claim.
Improve no-claims bonus class: strategies for lower premiums
The most obvious way to improve your no-claims class is to drive accident-free for several years. In addition, there are other options: many insurers offer a so-called no-claims discount protection. This optional paid extra covers prevents a downgrade after the first claim for which you are at fault per year. However, this protection often only applies with the current insurer and is not necessarily recognised when changing provider. Another option is claim buy-back: you can reimburse the insurer for the cost of a settled claim within a certain period (often six months) in order to reverse the downgrade. This is particularly worthwhile for smaller claims, where the cost is lower than the additional burden of higher premiums over the next few years. For new drivers, the parents’ second-car arrangement may be an option so that you do not have to start in the expensive SF 0 class. These strategies help you actively optimise your no-claims insurance classes.
Transfer no-claims class: pass discounts on to family
Under certain conditions, you can transfer your acquired SF class to another person. This is often possible within the family, for example from parents to children or between spouses. However, the person taking over can only be credited with as many claim-free years as they themselves could have accumulated since obtaining their driving licence. For example, if the father has SF 30 and the daughter has held a driving licence for five years, she can take over a maximum of SF 5. The remaining twenty-five years expire in this case. The transfer is irrevocable; the transferor permanently loses their SF class. The following points are often relevant when transferring an SF class:
Relationship or shared household.
Regular use of the vehicle by the recipient (depending on the insurer).
The recipient holds a valid driving licence.
Written waiver declaration from the transferor.
Submit an application to the insurer.
A transfer of the SF class can be a considerable financial relief, especially for young drivers. Find out exactly about your insurer's conditions before taking this step.
In addition to the standard rules, there are a few special situations and expert tips relating to SF class insurance. When changing insurer, your SF class is usually taken over by the new provider, provided no special classifications applied. The percentages, however, may vary. For second cars, there are often special second-car rules, which allow a more favourable 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, after a longer break in cover (e.g. seven to ten years), you can reactivate your old SF class. This is particularly relevant if you have not owned your own vehicle for some years. Also check whether your insurer offers special classifications for certain occupational groups or after completing a driver safety training course. Such details can further reduce your premium and should be taken into account when choosing your SF class insurance.
Optimise no-claims class for learner drivers and new licence holders
New drivers typically start in the less favourable SF class 0 or SF ½, which leads to high insurance premiums. Anyone who has held a driving licence for less than three years usually starts in SF 0. With three or more years of holding a driving licence, classification into SF ½ is often possible. One way to reduce costs is the second-car arrangement via the parents mentioned above. In this case, the new driver’s vehicle is insured as the parents’ second car and benefits from a better SF class, often SF ½ or higher. After several years of claim-free driving, the no-claims discount can then be transferred to the new driver. Some insurers also offer special classifications for participants in accompanied driving from age 17 (BF17). Our expert tip: compare offers carefully, as the terms and conditions for new drivers can vary significantly between insurers. Early planning and making use of these options can significantly reduce the cost of first-time SF class insurance.
Review your individual situation and secure the best possible cover
The SF class insurance is a complex topic with many variables. There is no blanket recommendation, as the optimal strategy depends on your individual situation, your driving experience and your needs. It is worth knowing your own policy terms in detail and checking regularly whether adjustments make sense. Use comparison calculators and, if necessary, consider independent advice to find the most suitable and cost-effective solution for you. Remember that it is not only the price, but also the benefits in the event of a claim, that are crucial. A well-chosen SF class insurance policy not only offers you financial benefits, but also the reassurance of being well covered if the worst should happen. At nextsure, we are happy to help you analyse your insurance situation and identify potential for optimisation.
More useful links
Wikipedia provides a comprehensive overview of the no-claims discount in German motor insurance.
The Federal Statistical Office (Destatis) provides up-to-date statistics on road 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 on insurance tax and fire protection tax.
The Federal Motor Transport Authority (KBA) provides statistics on the vehicle stock in Germany.
The Deutsche Bundesbank publishes reports on financial stability.
FAQ
How is my no-claims bonus class calculated?
Your no-claims bonus class generally corresponds to the number of full calendar years in which you have driven without making a claim and your vehicle was insured for at least six months of the year. New drivers usually start in SF 0 or SF ½.
What happens to my no-claims bonus class when I switch insurance providers?
Your achieved SF class is usually taken over by the new insurer when you switch insurance providers. However, special classifications or any discount protection you have used are often not taken into account; what counts is the actual claims record.
What no-claims bonus class do I have as a new driver?
New drivers who have held a driving licence for less than three years usually start in SF class 0. Those who have held a driving licence for more than three years often begin in SF class ½.
Can I use my motorcycle’s no-claims bonus class for my car?
Yes, transferring the no-claims years from a motorcycle to a car is generally possible. The actual years driven without a claim are taken into account, not necessarily the no-claims class itself.
How long does an SF class remain valid if I don’t have a car insured?
The period of validity of an SF class during a break in the policy varies. Many insurers still recognise an SF class after a gap of seven to ten years. At AdmiralDirekt, for example, it is up to twelve years.
Does a partial comprehensive claim affect my no-claims bonus class?
No, claims settled under partially comprehensive insurance (e.g. broken glass, collision with wild animals without any fault on your part) do not lead to a downgrade in the SF class. SF classes exist only for motor third-party liability and fully comprehensive insurance.
