The no-claims class is one of the characteristics of motor vehicle insurance that has a significant impact on the amount of the premium. The longer you are on the road as a driver without using your provider, the more the insurance will reward you with a discount.
Did you drive significantly less car than you thought in the wake of the corona pandemic? This tip can be particularly worthwhile for commuters who now work from home:
Report to your car insurance company that your mileage has decreased for the current insurance year. If the difference is big enough, your insurance company will reimburse you for part of your premium. You should do this as quickly as possible because some companies only adjust the bonus from the date you report. How exactly you should proceed and which insurances reimburse retrospectively (and which not), we keep up to date for you in our blog post.
The amount of the discount differs depending on the insurance
As long as the insurance did not have to settle any damage, the SF class corresponds to the number of years without damage: after eight years for example “SF 8”. The contribution rate drops accordingly, as the graphic below illustrates using the example of the discount scale in Huk-Coburg’s motor vehicle liability insurance.
How much the discount is in which class differs depending on the insurance company. SF classes are available in both liability and fully comprehensive insurance. The SF classes can be different in the two insurances if, for example, you have only reported damage in the fully comprehensive insurance, but not in the liability insurance.
With which no-claims class can you start?
When you insure a car for the first time as a newcomer to your driving license, you have to start in class 0 of the discount scale, for better or worse. The contribution rate is then 100 percent. After a year without an accident, the insurance will upgrade you to no-claims class 1. At Huk-Coburg you only pay 65 percent. As a novice driver, you can save a little if you insure your own car as a second car for your parents.
If you can wait until your driver’s license is at least three years old with the first car. If you drive your parents’ car during this time, you will usually have to be entered into the group of drivers there. This often makes the contribution significantly more expensive, as a Finanztip study shows.
If you already have your driving license for at least three years when you insure your first car, you can start with the no-claims class ½ and receive a small advance discount. Back to the Huk-Coburg, for example: there you pay 80 percent for motor vehicle liability and 55 percent for fully comprehensive insurance. For this driving license regulation, driving licenses for mopeds or mopeds are also counted.
Anyone who has registered a second car that has at least SF class ½ will be in at least this SF class. This is based on the assumption of the insurers: anyone who has previously driven one car without an accident would have been on the road with a second without damage. There is also a discount if the partner has insured a car with at least SF class ½. Some insurance companies are more accommodating with the second car rule and classify them even higher.
How do you secure the highest possible no-claims classes?
If you register your car in the first half of the year, you will be upgraded to the next SF class before the first twelve months are up. If a contract has existed for at least six months, SF class 0 increases to ½, class ½ becomes 1 and SF class 2 becomes 3.
If a close relative gives up their car, it can be a godsend for younger drivers in the family. Because their SF classes do not have to expire, another driver can take them over. So why not you However, the conditions for the transfer are strict. You can find out more about this in our guide to transfer no- claims discount.
It is easier to reactivate your own no-claims bonuses from the old days. If you have deregistered your car for a few years, you can reconnect to the old claims history and discount with a new car. The insurance companies deal with the revival of the SF classes differently and set different time limits. It is best to call your old insurance company and ask whether you still have an old no-claims discount and how many claims-free years you can specify for the new contract. In the best case, you will get this in writing, if not, you should remember the name of the employee.
How do demotion tables work?
If you report a claim to your insurance company, you will be downgraded in the coming insurance year, so in most cases, you will get some of the discounts canceled. If you have several accidents in one year, you will be downgraded several times. As with the discounts, each provider also has its own downgrade table. How many SF classes are lost after a claim can be found in the respective insurance conditions.
An example from Huk-Coburg: After the insurer has paid the other party to the accident after an accident, he downgrades you: If you were previously in liability insurance in SF class 7, you will fall back to SF 1 next year, and you will fall in the basic rate you even to the damage class S. Then, instead of 43% of the basic contribution, 65 or even 95 percent are due in the coming year.
The highest class of contribution that can come from an accident driver is the Malus Class M. The Huk-Coburg, for example, then charges a 134 percent contribution. This threatens everyone who has not yet got higher than SF class 5 and has to report two or more claims in one year. All newcomers to the no-claims class ½ have to do this with the first damage.
How can the downgrade be avoided?
Most accidents only end in sheet metal damage, which is not overly expensive. Then you should calculate whether it is worthwhile to have the insurance settle the damage. Especially if you have not yet reached a very high SF class, it is often cheaper to pay for the repair out of pocket for such minor damage.
Because the downgrade in the SF class usually leads to higher contributions for several years, which can add up to a substantial amount. Roughly, you can say that it takes ten years to make up for the financial disadvantage. Therefore, you should better pay for small damages up to 500 or 1,000 euros yourself. If in doubt, your insurer will give you information about whether it is worth taking over the damage yourself.
You don’t have to make this decision immediately. After each claim, you have at least six months to buy back the damage from the insurance and thus prevent you from being downgraded.
If you cause several damages in a calendar year, you could, for example, only have the most expensive one settled by the insurance company – and pay the remaining claims yourself. If you can still save yourself in the area above SF class 2, it’s worth it.
If your no-claims bonus is badly damaged and completely in the basement, you can also have the car insured for your spouse or partner for the time being. You can also sell the car for a symbolic value. Then simply transfer the car to your significant other. This effort pays off if you can save insurance premiums. Only when you want to have a contract yourself again do you have to state you’re bad no-claims discount.
For drivers who have frequent accidents, it is often worthwhile to include discount protection in the contract. Because of it, the SF class doesn’t drop after an accident.
What do you have to consider when changing after an accident?
Due to the different downgrading tables, it can sometimes become confusing after an accident which damage-free class you have to specify if you want to change your insurance.
Therefore, it is best to ask the new insurance company before concluding the contract with which no-claims class your contract begins. Then you won’t experience any unpleasant surprises and you won’t have to pay anything after the new provider has asked your old one about the SF class. The insurers only confirm the number of years with each other; they do not exchange any premium rates.
If you cannot reach anyone with your new provider for this question, use the SF class for the time being, which your current insurer would classify you into after the damage. You can find this information in the insurance conditions in the downgrade table. Important: Please do not enter your current SF class – then there is a risk that you will have to pay a large amount to the new insurer.
But you shouldn’t get into trouble because of the wrong information. Because the premium rate is always subject to the fact that your current insurer learns from your previous insurer whether your information on the claim-free years is correct. He also always asks who has ended the contract.
How do you get the company car no-claims class?
Most employees are happy when the boss provides a company car. Tax advantages for company cars make the model attractive. But it can be a disaster for your private no-claims bonus if you only drive your company car. If you don’t take precautions, these years are actuarially lost years. After all, through accident-free driving, you collect no-claims discounts for your employer.
If at some point you want to insure your own car again, the question arises as to which no-claims discount you can start with. First, check whether your old SF classes have expired, if you have collected any before.
If there is nothing to be gained at this point, you may be able to take over the no- claims class of your company car – at the latest when the company car contract ends or you leave the company. Clarify with your boss in good time whether the takeover is an option. If your boss would like to make this no-claims discount available to you, you can have the claims-free years you have experienced transferred to you. This then becomes your no-claims discount.
You should also clarify whether you are including your (old) no-claims class in the contract for the company car and let it run there. This saves premium and your personal no-claims bonus remains activated. However, it must then also be used for accidents that you build with the company car.
If the company car is a vehicle from a vehicle pool that other colleagues are allowed to use, it is best to have the manager confirm the usage times. Similar to carsharing users, some insurers are very accommodating to include these times on your no-claims discount. To do this, have your boss confirm either the days or kilometers you have driven.
Before you take out new insurance, you should ask various insurers how they classify you and what information you need to provide, or which documents you need to submit.
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