Achieve the best no-claims bonus: Your path to cheaper car insurance premiums
18 May 2025
6
Minutes
Katrin Straub
CEO at nextsure
Do you dream of lower car insurance premiums? The no-claims bonus class is your key to achieving this. Discover how this system works and how you can achieve and secure the best no-claims bonus class for you.
The topic in brief and concise terms
The best no-claims class (often SF 50) offers the highest discount, achieved through years of accident-free driving.
A downgrading after a claim can be expensive; paying for small damages yourself or opting for a discount protection might be worthwhile.
SF classes can be transferred under certain conditions, which is particularly advantageous for novice drivers.
Understanding the no-claims bonus system
The no-claims class is a bonus system used by car insurers for accident-free driving. For each year without a reported claim, you move up to a higher no-claims class. This leads to a higher no-claims discount and, therefore, a lower insurance premium. The no-claims classes usually range from SF 1 to SF 50, with SF 50 granting the highest discount. There are also special classes such as M (malus class) or S, which generally apply after claims or for beginner drivers and lead to higher premiums. The exact amount of the discount varies depending on the insurer.
The highest achievable no-claims class, often SF 50, offers the maximum discount of up to eighty-five percent. You can find your current no-claims class in your last premium statement. This system applies to both car liability and comprehensive insurance, but not to third-party, fire and theft (TPFT) insurance. A look at the no-claims classes table of your insurer provides details on the exact discounts. Knowing the premium rate of your car insurance is crucial in this.
Determine and assess your current no-claims bonus class
To calculate your current no-claims bonus class, you can refer to the number of years you have been insured without accidents. For example, if you have been insured for fifteen years without accidents, you are usually in SF-class 15. An exact indication can always be found on the last statement from your car insurance. It is important to know that the SF-class for motor liability and comprehensive insurance are maintained separately and can differ. The type class of your vehicle also affects the premium, but not directly the SF-class.
The "best" no-claims bonus class is the one with the highest discount, usually SF 35 or SF 50, depending on the insurer. When switching insurers, your previous SF-class is generally adopted by the new insurer. An exception can occur if there was a special classification or discount protection with the previous insurer. The question "How much does car insurance cost?" thus largely depends on your SF-class.
Strategies to Improve Your No-Claims Bonus
The most obvious way to improve your no-claims discount class is by driving accident-free for several years. Each year without a reported claim leads to an upgrade. However, there are other ways to positively influence your classification or avoid a downgrade. An important consideration is to pay for minor damages yourself rather than reporting them to the insurance company. This can be more cost-effective in the long run than facing higher premiums after a downgrade. Weigh the repair costs against the potential premium increase over several years.
Another option is to opt for a policy with a no-claims discount protector. This additional feature prevents a downgrade after a claim, although it does incur an additional premium. A no-claims discount protector can be worthwhile for frequent drivers or expensive vehicle models, as the risk of damage or the potential downgrade severity is greater. Note that a no-claims discount protector usually only applies with the current insurer, and in case of a switch, the actual claim history counts. There are often special rules for young drivers.
Here are some tips for improving and protecting your no-claims discount class:
Drive defensively and avoid accidents.
Evaluate whether paying yourself for minor damages is cheaper than reporting them to the insurer.
Consider a policy with a no-claims discount protector if you want to avoid downgrading at all costs.
Take advantage of the option to transfer a no-claims discount from family members.
Find out about special ratings for second cars.
Regularly improving your no-claims discount class is an active process that pays off financially.
The pitfalls of being downgraded after a claim
If you report a claim to your motor liability or comprehensive insurance that it covers, your SF class will be downgraded in the next insurance year. This means a lower no-claims discount and therefore higher premiums. The number of classes downgraded depends on your current SF class and your insurer's downgrade table. The higher your SF class, the more significant the downgrade can be. It's important to know that the number of claims is relevant for the downgrade, not necessarily the claim amount.
You can find the exact regulations for downgrading in the terms and conditions of your policy. After a regulated claim, you often have a special right to cancel and can switch to a cheaper provider, even if the downgrade itself cannot be prevented. It is worth considering whether comprehensive insurance is still worthwhile, when premiums increase significantly due to downgrades. The difference between third-party and comprehensive insurance also plays a role here, as third-party insurance does not have SF classes.
Expert knowledge: Special cases and specific regulations
Besides the standard classifications, there are some special cases for no-claims discount classes. Novice drivers, for example, often start in SF class 0 or SF ½, which is associated with higher premiums. After three years of holding a driving licence, classification in SF ½ is often possible. A transfer of the SF class to children can bring financial relief here. The practice of taking over the car insurance from parents is common.
Special classification can also be granted for second cars, often cheaper than the initial classification for novice drivers. Some insurers even offer to classify the second car in the same SF class as the first car. In the event of a contract interruption, for example if you deregister your vehicle for a few years, the SF class usually remains valid for a period of seven to ten years. Our expert tip: Have your achieved SF class confirmed in writing by the insurer during a contract interruption. This facilitates the recognition at a later new policy conclusion. The exact deadlines for expiration or recognition vary depending on the provider.
Key aspects at a glance:
Novice drivers often receive SF 0 or SF ½.
The transfer of SF classes is mostly possible within the family.
There are often cheaper special classifications for second cars.
For contract interruptions, the SF class remains valid for about seven to ten years.
A discount protection prevents downgrading, but usually only applies to the current insurer.
The SF class is generally carried over when switching insurers, but special classifications are not always taken over.
These regulations show how important it is to consider your situation individually.
Secure long-term benefits of a high no-claims class
A high no-claims bonus class is the result of years of accident-free driving and is rewarded with significant premium discounts. The maximum discount can be up to eighty-five percent. To secure these benefits in the long term, it is advisable to continue driving carefully even after reaching a high no-claims class. The temptation to settle minor damages through the insurance should always be critically questioned, as a downgrade can nullify the savings of many years. Maintaining a high no-claims bonus class often outweighs the short-term savings from a damage settlement by the insurer.
Regularly inform yourself about the conditions of your insurance contract and the options to protect your no-claims bonus class. Comparing providers can be worthwhile, as the discount scales and downgrading tables vary. Remember that a good no-claims bonus class is a valuable asset that provides you with financial advantages over many years. Should you wish for advice on your individual situation, we are happy to assist you.
Request your individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
Wikipedia provides a comprehensive overview of the no-claims discount (SFR).
Die Versicherer offers an informative article about the no-claims discount.
Gabler Wirtschaftslexikon delivers a detailed definition of the no-claims discount.
Statista provides relevant statistics on car insurance.
GDV informs about the influence of age on car insurance premiums.
GDV offers insights into the business development of motor vehicle liability insurance.
Die Versicherer enables the querying of type classes for car insurance.
FAQ
What is the highest no-claims discount class?
The highest no-claims class varies depending on the insurer, often being SF 35, SF 40, or SF 50. This class grants the maximum no-claims discount.
How is my no-claims bonus calculated?
Your no-claims discount class generally corresponds to the number of years you have driven accident-free and been insured. One year without reporting a claim results in an upgrade to the next class.
What happens to my SF class after an accident?
After an accident handled by your insurance, you will be downgraded to a lower SF class. This results in a higher premium in the following year.
Can I take over the no-claims discount from someone else?
Yes, transferring the SF class is often possible, usually within the family (e.g., from parents to children) or between spouses. However, only as many years can be transferred as the recipient could have experienced themselves.
Is discount protection worth it?
A no-claims discount protection can be worthwhile to avoid a downgrade after a claim. However, it is subject to a fee and usually only applies with the current insurer. Weigh the costs of the no-claims discount protection against the potential increase in premiums.
Does my no-claims discount expire if I deregister my car?
Your no-claims bonus does not expire immediately. Most insurers will recognise it for a period of seven to ten years after the policy ends. It is advisable to have your no-claims bonus confirmed when deregistering.
