Car insurance in Germany for new drivers and newcomers: the no-claims class explained

The basics: liability cover, eVB and vehicle tax

Third-party liability cover (Kfz-Haftpflicht) is compulsory (§ 1 PflVG) and pays for damage you cause to others; cover for your own car (Teilkasko, Vollkasko) is optional. Insurers must generally accept liability applications (BaFin).

To register a car, you need an eVB number (elektronische Versicherungsbestätigung), a free seven-character code from your insurer.

Vehicle tax (Kfz-Steuer) is separate: customs (Hauptzollamt) collects it by SEPA direct debit, which you authorise at registration.

How the SF class works

Your SF class reflects your claim-free driving years; a higher class usually means a lower premium rate. Each claim-free year normally moves you up one class, if you were insured for at least six months without a break.

Only liability and fully comprehensive cover have SF classes, one each, so partial cover claims such as broken glass or theft do not move you down. Rates per class vary by insurer.

Your first classification

Your first policy in your own name usually starts in SF 0, an expensive entry class. Special rules in the tariff terms (Tarifbestimmungen) vary by insurer:

• Licence duration: after one or three years with a licence, depending on the insurer, SF ½ may be possible.
• Second car (Zweitwagenregelung): if your parents insure your car as a second car on their policy, some insurers rate it better.
• Relatives: under conditions you can take over the claims history (Schadenverlauf) of parents, grandparents or a partner, usually if you drove their car regularly.
• Limit: you get at most as many claim-free years as you have held your licence, and the other person loses their record.

Accompanied driving at 17

With accompanied driving from 17 (BF17), you may only drive with a registered companion until age 18. If you use your parents' car, they must tell their insurer, as young drivers affect the premium; some insurers give a premium advantage for BF17. As a named driver, you build up no SF class of your own.

After a claim: downgrades and no-claims protection

If you cause an accident and your liability or comprehensive cover pays, you move down the next year (Rückstufung). The number of claims counts, not their size. Reimbursing the insurer once it tells you the cost often avoids this.

Rabattschutz and Rabattretter are add-ons in some tariffs: your class stays the same after a claim, or you are downgraded but keep your previous rate. They often require a certain class or minimum age, may cost extra and do not transfer to a new insurer.

Claim-free years from abroad

If you were insured in your own name abroad, ask your previous insurer (Vorversicherer) for a claims-free certificate (Schadenfreiheitsbescheinigung). Under § 5c PflVG, certificates from the European Economic Area (EU plus Iceland, Liechtenstein and Norway) must be treated like German ones for liability premiums and discounts.

Elsewhere there is no such rule or general right, though some insurers accept a certificate, often with a translation. Ask before you sign up.

Note: a licence from outside the EU and EEA is usually valid for only six months after moving to Germany and must then be exchanged.

Type class, regional class and switching

Your car model's type class (Typklasse) and your district's regional class (Regionalklasse) also count. The insurers' association GDV publishes both yearly as non-binding statistics; your insurer decides which apply.

You can usually switch at the end of the insurance year, with notice due by 30 November for most policies. This article is for information only and is not personal advice.