No-claims discount

from Wikipedia, the free encyclopedia

The no-claims discount (abbreviated SFR ) is originally a term from motor vehicle insurance . The longer a policyholder drives claims-free, the higher his no-claims discount, expressed by the SF class. The system is now used in a similar form in other insurance lines, e. B. Full and supplementary health insurance , household contents insurance , private liability insurance (PHV), residential building insurance , glass breakage insurance and legal protection insurance .

SFR in car insurance

In motor vehicle insurance, a no-claims bonus system is used in the insurance lines of motor vehicle liability insurance and fully comprehensive insurance (see comprehensive insurance ). The respective no-claims classes are stored with premium rates that have developed differently among motor insurers since deregulation in 1994. The contribution rates for the no-claims classes must therefore be taken from the insurance conditions of the individual insurers.

Even in the 1970s, the highest SF level 10 was valid for cars. Due to the long-term statistics of claims data, created by the Association of the German Insurance Industry (GDV), claims-free classes are now up to SF class 35, and in some cases beyond, guided.

In addition to the regional class and type class, various other features, such as: B. the age of the driver, the vehicle age, the annual mileage, etc. on the insurance premium . For further features see: Contribution design for cars .

No claims classes and the damage class

The structure of the no-claims classes (cars) ("remarks" without taking special classifications into account):

class comment
M. Damage class (only achievable through one or more damage that is effective for downgrading)
S. Damage class (only achievable through one or more damage that is effective for downgrading; not used by all insurers)
KL 0 Driving license <3 years
SF ½ Driving license from 3 years
SF 1 1 year free of claims
SF 2 2 claims-free years
etc. etc.

If there is no claim in class M, you will directly reach no-claims class 1. To move from class 0 directly to class SF 1, the contract must be signed on 1.1. of the year. In order to move directly from class SF ½ to class SF 1, the contract must have been in place for at least 180 days per year. In order to achieve an early upgrade from classes 0 and SF ½, the insurers allow a so-called technical back-dating of the start of insurance, e.g. B. Effective start of insurance on 1.2. in class 0, backdated to 1.1. How far backdating is worthwhile must be calculated in each case. Backdating has been in vain if damage that is downgraded is caused. A later correction is not possible.

Contribution rates

Until the deregulation in 1994, the insurers used the same premium rates in the respective SF classes, after which they developed differently. While the premium rate in class SF 1 was 100% as standard, which was also the basis for calculation, almost all insurers now assign a premium rate of 60%, and occasionally 50%, to class SF 1. This procedure ensures that competitors who assign higher contribution rates look worse visually. The effects go up to the highest SF class, for example the contribution rate of an insurer is 20% in the SF 35 class and 16% for a competitor. As a percentage of the contribution, this difference roughly corresponds to between 60% and 50%.

The background to this market development is that customers place more value on the premium rate than on the SF class and avoid switching insurers if the premium rate worsens.

Downgrading in the event of a claim

In the case of damage that encroaches on the no-claims discount, the downgrade will take effect on the first due date of the following year. This is done separately for motor vehicle liability and full vehicle insurance (fully comprehensive). Each insurer sets its own downgrade tables, but uses the data made available by GDV. Nevertheless, there are differences, especially with different lengths of the respective SF squadrons. Therefore, in the event of an onerous claim in the current calendar year and a planned change of insurer, the downgrade tables of the previous and the (planned) subsequent insurer should be compared.

To avoid downgrading, it may be cheaper to pay for the damage yourself. A general statement as to when a buyback is worthwhile cannot be made, however, as the future development of a motor vehicle insurance contract, e.g. B. due to a vehicle change with fully comprehensive coverage, is not certain.

Change of insurer

If the insurance company changes, the no-claims discount previously experienced is transferred to the new insurer via data exchange. The subsequent insurer receives from the previous insurer the number of claims-free years, the number of claims from the previous year and the current year. If no damage has occurred in the current calendar year, he will assume the SF class of the previous insurer, at the start of insurance 1.1. the next higher SF class, as the previous insurer always has the data as of 31.12. transmitted. If the insurer changes in the current year and there are downgrade damage in the current calendar year, the reinsurer takes over the specified SF class, but downgrades the first due date in the new year in accordance with the downgrade table that is assigned to the insurance conditions valid at the time of conclusion of the contract.

Discount protection

Almost all insurers now offer so-called discount protection. The discount protection is chargeable. The additional contribution is determined by adding a surcharge to the basic contribution. In the event of onerous damage, the contract either remains in the same SF class or is even upgraded. Insurers treat this differently. Many insurers only offer discount protection from SF class 4. For young drivers (up to 25 years of age) either the discount protection is not offered or only with a significantly higher surcharge. If you change the insurance company, however, the "saved SFR" is not confirmed to the insurer. The SF class is confirmed that would be available according to the downgrade table on which the contract is based, without the discount protection.

A regulation prohibition sought by the policyholder in the event of a claim does not relieve the downgrade in the event of a claim only if the policyholder could prove (legal action) that the regulation was incorrectly carried out in full.

The insurer can withdraw from the “SFR rescue” by giving notice in the event of a claim or at the end of the “SFR rescue”. Since only the downgraded SF class is confirmed to the reinsurer, the policyholder cannot use the discount protection despite the additional premium. In such a case, it is possible for the Ombudsman to review the process .

Discount savers

Old contracts often still contain a discount saver. The insurers who have introduced discount protection or who manage the SF classes over the SF 25 class with further reduced premium rates no longer offer a discount saver. The discount saver, if still available, only applies to contracts that have already reached SF class 25 or higher (same contribution rate). In the event of damage, there is then a downgrade to an SF class, in which this changes, but not the contribution rate.

Buyback

Depending on the insurance conditions, the downgrading can be avoided within six or 12 months in return for payment of the compensation (excluding external claims settlement costs), even if the insurer has already settled the claim. This is standard in motor vehicle liability insurance , but many insurers now also offer this option in fully comprehensive insurance .

Takeover from third party contracts

The assumption of a no-claims bonus from another person (formerly TB 28) is tied to certain, but also different, criteria throughout the market. With most insurance companies, the transfer of a discount from a third party (issuer) to another person (acceptor) is only possible if the following conditions are met:

  • The acceptor must make it credible that he did not only drive the vehicle of the donor occasionally.
  • The submitter must agree to this transfer. However, a transfer after the death of the donor is also possible by presenting a death certificate.

Other requirements are handled differently by the insurers and can therefore be found in the insurance conditions.

The amount of the discount that can be accepted depends on the contract and claims history of the third party. The person taking over can only take over as many claims-free years as he could actually have achieved. The date on which the driver's license was issued is decisive. Example:

Third party contract (as of 7/2013): SF 10 with no damage since 2007

The person taking over acquired his driving license on April 15, 2007.

Calculation:

The acquirer would have started in SF class 0 on April 15, 2007

  • January 1, 2008 = SF ½
  • January 1, 2009 = SF 1
  • January 1, 2010 = SF 2
  • January 1, 2011 = SF 3
  • January 1, 2012 = SF 4
  • January 1, 2013 = SF 5

Thus, in this case, 5 claims-free years would be carried over. The difference to SF 10 of the submitter is forfeited without replacement.

If an SFR-burdening damage occurred during the calculation period, this will be taken into account in the calculation as if it had been caused by the acceptor. The current downgrading table of the insurer is decisive here, not the one valid at the time the damage occurred.

A transfer back to the donor is only possible between married couples. In other circumstances, not, as it was made credible during the transfer that the person taking over did not only drive the vehicle occasionally. If this SFR is to be transferred to another person at a later date, only the portion that has been acquired since the last transfer can be transferred.

If you put your SFR z. B. available to the employer upon receipt of a company vehicle , you should clarify in advance with the client and the insurer that you are considered an SFR beneficiary. Thus, when returning the company car, you can fall back on your existing SFR.

Impact of Interruptions on SFR Development

  • In the event of an interruption of up to six months, the SFR is treated as if there had been no interruption.
  • For more than six months up to seven years, the contract remains in the SF class in which it was when the contract was terminated.
  • After seven years, the SFR is deemed to have expired. (Now only after 10 years, or with some insurance companies it does not expire at all.)

Due to the retention periods, insurers can delete the existing data 7 years after termination of the contract. In such cases the SFR is irrevocably lost. If the data is not deleted, the insurer can refuse to recognize or to issue an SFR, provided that it has set the 7-year period as the expiry date in its insurance conditions.

Second car insurance

If another vehicle is insured for the same policyholder or (spouse) partner, almost all insurers offer a better entry point than the SF class ½. Some insurers even offer, provided that the vehicle is generally only driven by one person, to drive the second vehicle in the SF class in which the first vehicle is also located. However, in the event of a claim, regardless of which vehicle caused the damage, there is usually a downgrade in both contracts.

Legal protection insurance

In the meantime, there are also legal expenses insurers who grant a no-claims discount if there are no claims. There are two types of no-claims discounts: Either the discount affects the premium or an agreed deductible. In both cases, increased freedom from damage has a lowering effect on the premium or excess.

Private health insurance

General

No- claims discounts are now also being offered by individual insurers in full private health insurance . If no benefits are used by the insurer, i.e. no invoices are submitted, the policyholder receives an annually increasing discount (five percentage points annually), which can lead to a reduction of up to 50% of the regular premium.

It should be noted that this discount, similar to that in motor vehicle insurance, is only reduced slowly (e.g. ten percentage points per year of benefit receipt).

This and the fact that the no-claims discount is a contractually guaranteed premium reduction has great advantages over the previously customary and well-known premium refunds .

Another innovative form of premium reduction, if the policyholder does not provide benefits, is the flat rate benefit .

particularities

  • In the case of policyholders who receive an employer subsidy for private health insurance, it should be noted that the subsidy may also be reduced by a no- claims discount, as the total contribution is reduced. For this group of people, the all- inclusive benefit is all the more interesting.
  • The no-claims discount cannot currently be transferred to another insurer.

Individual evidence

  1. ↑ Car insurance tariff features. GDV, accessed on April 16, 2018
  2. ↑ 60%: Insurance conditions - as of: AKB 07.2012. In: gothaer.de , accessed on December 30, 2013
  3. ↑ 50%: Direct Line - Conditions for motor vehicle insurance - as of October 2012. In: directline.de , accessed on December 30, 2013
  4. ↑ a b Henning Busse: Car Insurance - This is how you save money by repurchasing damage. In: Auto Motor und Sport , October 10, 2011, accessed September 3, 2013