When does the no-claims bonus expire?

The no-claims class is a key factor in calculating the car insurance premium in Germany. It indicates how many years the driver has been accident-free on the road and is usually rewarded with a discount on the insurance premium. However, many drivers ask themselves the question: “When does the no-claims bonus expire??”

A no-claims bonus class is recalculated and adjusted annually by the insurance company. However, if a policyholder reports a claim that is settled by the insurance company, he falls into a lower no-claims class and the discount on the insurance premium decreases. In some cases, it may happen that the no-claims bonus is completely forfeited.

However, there are also other reasons why the no-claims bonus may expire. If the insurance coverage is interrupted for a longer period of time or the policyholder changes vehicles, the no-claims bonus may also expire. Even when changing insurance, it can happen that the insurer does not recognize the no-claims bonus class of the old insurer and the discount is forfeited.

It is therefore important that every motorist takes care not to lose his no-claims bonus. This is because the higher the no-claims bonus class, the cheaper the car insurance premium will be. In an emergency, the loss of the no-claims bonus can therefore lead to higher costs.

What is the no-claims class?

The no-claims class (SF class) is used in motor vehicle insurance to assess the insured’s claims risk. The higher the no-claims bonus class of the insured, the lower the claims risk and thus the lower the insurance premium. The no-claims bonus is determined over a period of several years and may increase or decrease depending on the insured’s claims history.

However, if the insured causes a damage, the no-claims bonus may decrease, which leads to an increase in the insurance premium. If no claim is reported in a contract year, the SF class increases by one level. However, if a claim is reported, the SF class can drop by several levels.

• Expiration of the no-claims bonus:

The no-claims bonus or. The no-claims bonus class does not automatically expire after an accident or after a change of insurance provider. In fact, the SF class is assessed individually by each insurance company and may be treated differently depending on the terms of the contract.

However, some insurance companies offer a so-called discount protection insurance, which protects the no-claims bonus of the insured in the event of an accident and thus does not cause any loss of SF class.

It should be noted, however, that a change of insurer can still have an impact on the no-claims class, as each insurance company is based on different assessment standards. Therefore, it is advisable to check the SF class regulations carefully before changing insurances.

When does the no-claims bonus expire?

The no-claims bonus class (SF class) is an important criterion in the calculation of insurance premiums for vehicles. It is based on the number of accident-free years of a policyholder. The more years pass without damage, the higher the SF class rises and the more favorable the insurance premiums become. But at what point does the no-claims bonus expire??

Basically it is to be said that the no-claims bonus does not expire automatically. However, there are some reasons for which the policyholder loses his SF class and thus has to pay a higher premium. For example, when a claim is reported or the policy is terminated. The SF class is also reset in the event of a change of vehicle and the policyholder has to start all over again.

It is important to note that each insurer has its own rules when and how the no-claims bonus expires. Some insurers also offer protection letters that save the no-claims bonus in the event of one or more claims. So comparing quotes from different insurers can be worthwhile.

• In summary:
• The no-claims bonus does not expire automatically.
• The policyholder loses his SF class in case of a reported claim, termination of contract or change of vehicle.
• Each insurer has its own rules when and how the no-claims bonus expires.
• It may be worthwhile to compare protection policies or offers from different insurers.