No-Claims Class (Schadenfreiheitsklasse)

Concept

The no-claims class is the specific rating level of an individual motor insurance policy within the bonus-malus system used by the insurer. It is determined by the number of calendar years in which the policy has remained free of a loss settled by the insurer that is attributable to the policyholder, and determines the rate applied to the base tariff premium.

Upgrading and Downgrading

For each claims-free calendar year, a policy generally moves up one no-claims class, resulting in a lower rate; if a loss is settled by the insurer, the policy is downgraded by several classes, the exact extent of which depends on the insurer’s specific downgrade table. New drivers and young drivers typically start in a low entry class, unless they can benefit from the no-claims class of a family member.

Transferability and Relevance When Switching Insurers

Because the no-claims class achieved represents a significant economic value for the policyholder, it is generally transferable when switching insurers; the new insurer assigns the policy to its own corresponding no-claims class based on a confirmation issued by the previous insurer, although the specific mapping may differ slightly between insurers depending on the bonus-malus system used.