How to Keep Your No-Claims Bonus Without a Car

Many car owners wonder: Is it possible to keep your No-Claims Bonus even if you don’t own a car? The answer isn’t entirely simple and depends on various factors. In this article, we delve into this question and show you the options available to retain your hard-earned No-Claims Bonus, even if you temporarily don’t own your own car.

What Exactly is the No-Claims Bonus?

The No-Claims Bonus (often referred to as SF-Class in some regions) is a crucial factor in car insurance. It reflects your driving history and significantly impacts your insurance premium. The longer you drive accident-free, the higher your SF-Class level increases, and the cheaper your insurance becomes.

Diagram showing No-Claims Bonus levels (SF-Class)

Why Is It Important to Keep Your No-Claims Bonus?

Your SF-Class is worth real money! Dropping to a lower level can result in significant additional costs for your insurance premium. Therefore, it’s advisable to maintain your SF-Class even if you temporarily choose not to own a car.

Ways to Keep Your No-Claims Bonus Without a Car

But how can you keep your No-Claims Bonus when you don’t own a vehicle? Here are several options:

1. Register the Vehicle in a Family Member’s Name

One option is to re-register your vehicle under a family member’s name (e.g., spouse, parents, children). This way, the insurance policy remains active, and your SF-Class continues to accrue. It’s important that the family member actually drives the vehicle regularly.

2. Utilize the Second Vehicle Rule

Some insurers offer the option to transfer the SF-Class from a primary vehicle to a second vehicle, even if the second vehicle is registered to a different person. This allows you to retain your SF-Class even if you no longer own your own car.

3. Apply for a Certificate of Interruption from the Insurer

If you deregister your vehicle and do not register a replacement car, you can apply for what is known as a Certificate of Interruption from your insurer. This certificate confirms your SF-Class for a specific period and allows you to reinstate your level when you register a vehicle again.

Sample Car Insurance Certificate of Interruption

Tips for Retaining Your No-Claims Bonus

Check with your insurer in advance about the options available to keep your SF-Class even without owning a car.
Compare offers from different insurers, as the terms and conditions for SF transfer can vary.
Ensure all necessary formalities are completed correctly and on time to avoid losing your SF-Class.

Is It Worth the Effort to Keep Your No-Claims Bonus?

The answer is clearly yes! The effort required to retain your No-Claims Bonus is minimal compared to the potential costs of being reclassified at a lower level. Take advantage of the options available to you and save significant money on your car insurance.