Why did my no-claims class drop when I was not at fault?
In short
Why did my no-claims class drop when I was not at fault? Because in Germany fault is not the test. What counts is whether your insurer pays or sets money aside (a reserve) for the claim. Under the model terms a reserve is enough. If the other side ends up paying everything, or the reserve is released within three calendar years without payment, the year counts as claim free again.
Rules from the German model terms and a published tariff example for a liability downgrade, 2026.
Example
Typical range
Downgrade after one claim in the example tariff
from SF 8 to SF 2, rate from 36 to 49 percent
Same claim in the basic tariff of the same insurer
from SF 8 to SF ½, 66 percent
Reserve released without payment
claim free after 3 calendar years
Voluntary repayment under the model terms
up to EUR 500 within 6 months
Downgrade tables and rates differ by insurer and tariff; the example comes from a published tariff.
The base premium of EUR 600 in the calculation is an estimate from quoting practice.
Worked example
Accident without fault, the other driver still claims
You are in SF 8, base liability premium EUR 600. The other driver alleges shared fault and your insurer sets up a reserve.
Premium in SF 8, 36 percent
EUR 216
Premium after downgrade to SF 2, 49 percent
EUR 294
Extra premium in the first year
EUR 78
Reserve released without payment
contract counts as claim free
If the reserve is released without payment, you are entitled to the claim free class. Ask explicitly for the correction and the premium you overpaid.
Fault is not the test
Your no-claims class (Schadenfreiheitsklasse, SF) is reset each 1 January based on the claims history. A year counts as a claims year if you report an event for which your insurer pays compensation or has to set up a reserve (Rückstellung). Costs for experts, lawyers and court do not count.
That feels unfair if you did not cause the accident. For the class, however, the only question is whether money flows from your policy or is held back for it.
Common reasons for a downgrade without fault
Usually it is one of a few cases. Ask your insurer in writing which one applies and whether it paid or only reserved money.
Reason
What is behind it
What you can do
Reserve for a disputed claim
The other driver demands money, your insurer holds some back
ask whether and when the reserve will be released
Partial fault
Paying 30 percent of the other damage is still compensation
have the liability split checked
Payment despite your objection
Your insurer may settle claims in your name
ask for written reasons
You used your own comprehensive cover
Vollkasko has its own claims history
check the exception when the other side is fully liable
Partial cover, such as glass or wildlife
does not cause a downgrade
check the bill if you were downgraded anyway
Your insurer may pay on your behalf
In liability cover your insurer is authorised to settle or reject claims against you in your name and to make the statements it considers appropriate (model terms AKB, A.1.1.4). It must use its discretion properly.
If it considers the other driver's claim justified, it can pay even if you think you were not at fault. Ask for its reasons. A wrong assessment can be a way to challenge the downgrade, but that needs a case by case review.
When the downgrade is reversed
Under the model terms the contract counts as claim free despite the report if the insurer releases its reserve without payment within the three calendar years after the report, if the other driver or their insurer reimburses the compensation in full, or if payment was made only under agreements between insurers or with social insurance bodies.
For comprehensive cover there is another exception: if you use it only because the other side is fully liable but their liability insurer refused cover, you are not downgraded. Your own policy terms may differ from the model terms, so check them.
Paying it back yourself
With partial fault and a small amount, you can voluntarily repay the compensation to your insurer. Under the model terms this works up to EUR 500 within six months of being told the amount; your liability cover then stays claim free. Compare that sum with the extra premium over the next years.
Step by step
Check the bill: was liability, comprehensive or both downgraded?
Ask in writing whether the insurer paid or only set up a reserve.
If it paid, ask for its reasons and the liability split.
If there is a reserve, follow up once the case is closed.
With small partial fault, work out whether paying yourself is cheaper.
Checklist
Accident report, photos and witnesses saved
Written answer on payment or reserve
Liability split explained
Deadline for voluntary repayment noted
Class checked again after the case is closed
Common mistakes
Not reporting an accident only because you feel you were not at fault
Accepting the downgrade without asking about reserve or payment
Using your comprehensive cover although the other side is liable and pays
Not asking for the correction after the case is closed
Questions and answers
Frequently asked
May my insurer pay although I object?
Yes.
In liability cover it may settle claims in your name, but must use its discretion properly.
Am I downgraded as soon as there is a reserve?
Yes, under the model terms a reserve counts.
If it is released without payment, the year is claim free again.
Does a partial cover claim cause a downgrade?
No, Teilkasko claims such as glass, wildlife or theft do not.
What about partial fault?
Any payment to the other side counts, even if it covers only part of their damage.
Does switching insurer help?
No.
The new insurer takes over the claims history including the downgrade.
