No-claims bonus expiration – when does the discount expire?

Here's when you can expect your no-claims bonus to expire. If you don't own a car for a long time, of course you don't need car insurance anymore. Then there is the question of what happens to the no-claims bonus after the insurance ends. In the following we will get to the bottom of the question how long it takes for the no-claims bonus to expire.

Interruption of less than six months has no effect

With a high no-claims bonus, your car insurance becomes noticeably cheaper. However, you have to have been on the road for a long time without an accident before you can achieve a high no-claims bonus. But what if you don't need the car insurance for a while and let the policy expire. Then, of course, it would be extremely annoying to lose your no-claims bonus immediately. Finally, it may be that one wants to take out car insurance again later and then use the discount again.

Fortunately, however, the no-claims bonus does not expire immediately after termination of the car insurance policy. As a general rule, an interruption of less than six months does not affect the discount. During this period, the insurance companies continue the discount process as if there had been no break at all. You can even move up a no-claims class in the next year. The prerequisite is, of course, that the insured person has remained accident-free.

Different periods for the no-claims bonus expiration

But what if the interruption is longer than six months?? How long the no-claims bonus is retained beyond the six months cannot be said in general terms. In Germany, there is no general rule on the expiry of the no-claims bonus. Each insurance company is allowed to determine for itself when the discount expires. In any case, it can be said that the no-claims bonus is retained for at least seven years after termination of the motor vehicle insurance policy. With many Kfz insurances however still more time remains to the customers up to the no-claims bonus expiration. It often takes ten to twelve years for the no-claims bonus to expire. There are even some car insurers where the discount is retained indefinitely.

If you want to find out how long it takes for the no-claims bonus to expire with the respective insurance company, it helps to take a look at the General Terms and Conditions of Motor Vehicles (AKB) of the respective insurance company. But it can also be worthwhile to negotiate individually with the insurance company. Sometimes the insurance companies are then too willing to recognize no-claims discounts in individual cases even longer than specified in the General Terms and Conditions of Motoring.

Take the discount with you to the new insurance

If you want to take out a car insurance policy again after a longer period of time, you should definitely try to have your previous no-claims bonus credited, as this can significantly reduce the insurance premium to be paid. Otherwise, the insurance with SF class ½ to start will be very expensive. It is therefore advisable to keep your insurance documents after deregistering your car, so that you can quote the old contract number when taking out a new policy at a later date.

If you want to reactivate your no-claims bonus after a break, you do not necessarily have to go back to your old car insurance company, you can also take another insurance company. Sometimes it can even make sense to choose a more expensive car insurance at first, but one that recognizes the earlier discount in return. After one year, they can still switch to another, cheaper insurance company with the recognized no-claims bonus.

Keeping the no-claims bonus from expiring

In order for the new insurance company to recognize the previous discount, the new insurance company must ask the previous insurer for the amount of SF classes accumulated with them. This requires that the data is still stored with the previous insurer. However, many insurance companies delete the data of their former customers after the statutory retention periods have expired.

In order to prevent possible trouble with deleted data and an associated no-claims bonus forfeiture, it is advisable to have a certificate issued in accordance with Section 5 of the Compulsory Insurance Act as a precautionary measure when terminating the motor vehicle insurance. Insurance companies are obliged to confirm in writing the duration of the contractual relationship and the number of reported claims. Many car insurers accept this certificate as proof of the no-claims bonus class, even if your own insurance company has already deleted the corresponding data.

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