What is a no-claims bonus for car insurance?

no-claims bonus

Insurance is not rocket science. We explain everything you need to know about the no-claims bonus in this glossary article.

Overview

What is the no-claims bonus or discount?

Each bonus-malus class is assigned what is known as a no-claims bonus. But what does that mean exactly? The bonus-malus class (SF class) indicates how many years you have been driving your car without an accident. If you have not caused an accident for a whole year, you will be classified one class higher the following year. For each accident-free year, your insurance company rewards you with a no-claims bonus. This means that the higher your class and your no-claims bonus are, the less you pay for your car insurance. The final amount of the discount varies from insurance company to insurance company. Several no-claims classes can be assigned the same discount.

List of all bonus-malus classes

Still too complicated? Here’s an example: The usual premium for your car insurance is €600 per year. You have not caused an accident for four years and therefore have the SF class 4. Your insurance company rewards you with a no-claims bonus of 40% on your insurance premium! Instead of €600 you now pay only 360 €. So you save 240 €!

What is the no-claims bonus for special classes?

Since there is additional accident risk for new drivers, they are classified with special classes. In this case, a risk surcharge is added to your regular motor vehicle premium.

List of all special classes

Here is another example: The basic premium of your car insurance is €600 per year. As a novice driver, you are currently in SF class 0. A risk surcharge is now added to your basic premium. Instead of the usual 100% (basic premium of €600) you now pay 200 % for your insurance. This amounts to €1,200 per year.

If you’ve never had an SF class before, Getsafe gets you started with up to SF class 4! Your insurance premium remains the same even after an accident! And the best part? For every accident-free year you receive a voucher, which makes your premium even cheaper.

How long does the no-claims bonus last for?

Maybe you’re asking yourself: I haven't had a car for several years. What happens to my SF class and my no-claims bonus? Do I have to start from scratch again? Unfortunately, there is no uniform regulation on this. In the past, it was common for your SF class and discount to be valid for seven years. Many insurance companies allocate a period of 10 years. But this differs from insurance company to insurance company. You usually start again with the SF class ½ if you exceed the period of 10 years.

Can I take over or transfer a no-claims bonus?

To keep it short: No, you cannot transfer or take over the no-claims bonus. Unfortunately, this is not clearly communicated in many texts and articles. When you read a text about transferring the no-claims bonus, it actually refers to the bonus-malus class which you can transfer and adopt within your family.