How does a no claims bonus work?
A good no claims record can help make your car insurance much cheaper. Here’s how the bonus works and tips to get the best value from your bonus.
What is a no claims bonus?
It’s a discount on car insurance that rewards safe and secure motoring.
Also known as a no-claims discount, the bonus is based on the number of consecutive years you drive without claiming on your car insurance. The more claim-free years you earn, the bigger your discount gets.
How does the no claims bonus work?
For every year you have car insurance and don’t make a claim you’ll build an extra year of no claims bonus (NCB). By not claiming, you are signalling that you are a safe and responsible car owner to your insurer.
Each insurer has its own discount scale, which corresponds to the number of claim-free years. The maximum discount in Ireland is 75%, but you’ll need at least five years of no claims with AXA or FBD Insurance to get this.
Some insurers offer a claims discount after just one year, while others may not start until later.
Your no claims bonus discount in practice
For example, if you’ve been driving for five years and haven’t made a claim on your car insurance, you’ll earn five years no claims discount.
As a reward for not claiming on your insurance for five years, your insurer could apply a discount of 75% to your premium.
So if your annual premium is €700, once your no-claims discount is applied, your cover will be just €175, a saving of €525.
How much no claims discount do insurers offer?
You can get up to 75% discount on your car insurance policy, depending on which insurer you choose and how many years of no claims you have.
Here’s a summary of the discounts main car insurers in Ireland offer:
| Insurance provider | Maximum discount | No of NCB years |
|---|---|---|
| AIG | 65% | 6 years |
| AXA | 75% | 5 years |
| FBD Insurance | 75% | 5 years |
| RedClick | 66% | 9 years |
| The AA | 50% | 5 years |
| 123.ie | 60% | 6 years |
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Can you keep your no claims if you change car?
You can usually transfer your no-claims bonus if you buy another car. However, your bonus can only be used on one vehicle at a time, and if you try to apply your NCB to two different cars, it’s considered fraud and you could be penalised.
You’ll need proof of your no-claims bonus if you buy another car.
What if you switch insurance companies?
Your insurance company should provide proof of your bonus at the end of your policy term, so when you switch you can pass this on to your next provider.
Some insurers will provide your proof of no claims in the car insurance renewal letter or email. If you have an online account, the information you need will likely be available for download or print.
If you don’t have written proof of your no-claims record, you can ask your insurer to send it.
Bear in mind that if you switch insurers before your policy year ends, you won’t get the NCB for that year.
Can your no claims bonus expire?
If you don’t have a car for a while or have an insurance gap, some insurers may allow you to keep your no-claims bonus intact for up to two years.
It’ll be more challenging to find an insurer that considers your previous no-claims bonus if you don’t have an insurance policy for more than two years.
Consider contacting the insurer you built your no claims with and ask if they will take your previous record into account.
Can it be transferred to a van or motorbike?
You may be able to transfer your NCB from a car to a van, depending on the insurer and how the van will be used. It can’t be used on another active policy at the same time, so check with your provider before switching.
Car and motorbike bonuses are normally earned separately. If you insure both at the same time, you’ll usually need to build a separate NCB for each.
Can you get a no claims bonus as a named driver?
No, if you’re a named driver you won’t earn a no claims discount - but you might still be entitled to a Named Driving Experience discount if you are a permanent additional driver and haven’t made a claim for a set period of time.
NCB and multi-car insurance
If you have a multi-car policy, each car will usually need its own NCB. The bonus is earned by the main policyholder for that car, even when several policies are linked with one insurer.
If a claim is made on one car, it will normally affect the NCB attached to that car rather than bonuses earned on other vehicles. However, this may differ with combined policies, so check how claims are treated before choosing your cover.
An NCB can’t be passed to another person or used on two cars at the same time. Named drivers may instead qualify for a named driving experience discount when taking out their own policy.
How do you get your no claims bonus certificate?
When switching insurance providers, you’ll need proof of your no claims bonus to obtain your insurance certificate and disc.
There are a number of ways to do this, including:
- Renewal letter: You should receive a renewal letter from your previous insurer, when your policy is about to end with details of your NCB.
- Cancellation letter: Your no claims bonus should be stated on the cancellation letter you received from your previous insurer, when you terminated the old policy.
- View policy details: You’ll usually be able to log into your previous insurer’s website and view details of your policy, including how many years of NCB you accumulated.
- Request it: You can request a letter from your previous provider confirming your NCB.
How making a claim affects your no claims bonus
When you make a claim, your no-claims bonus may be reduced or lost when you renew. This will depend on the type of claim, whether your insurer recovers its costs and the protection included with your policy.
You’ll also lose all or some of your NCB if you’re in an accident and the other party makes a claim against you.
Do all claims affect your bonus?
No, there are types of damage or incidents that won’t affect your NCB if you have to make a claim.
Here’s what typically counts and what doesn’t, although each insurer will have different rules, so check your policy before starting a claim.
Claims that may affect your NCB
Claims that may not affect your NCB
How long can you keep a no claims bonus?
This depends on your claim history and whether you’ve paid to protect your NCB. The years required to reach the maximum discount will vary between insurers.
It’s best to consult with your insurance provider or refer to your insurance policy documents for specific information about how long you can keep your no-claims bonus.
They will be able to provide you with accurate information regarding the duration and transferability of your no-claims bonus.
You’ll likely need to explain the lapse of insurance if there’s a gap between a new policy and when your last policy expired.
Check out our complete guide to car insurance for everything you need to know about covering your car.
How to protect your no claims bonus
You can pay extra to protect your no-claims bonus. The add-on is usually called a No Claims Discount Protection, No Claims Bonus Protection or a Protected No Claims Bonus.
This prevents you from losing all the no-claims discount you’ve earned if you have an accident, but you’re usually only protected against one claim in a set period.
For example, you could make one claim in a three year period and keep your full no-claims discount. Further claims within that period may reduce or remove your discount, depending on the insurer’s NCB scale.
You may not be able to protect your NCB before reaching a set number of years, e.g. four years. Similarly, if you make a claim that reduces your no-claims bonus to zero, you’ll need to build some years back up before you can protect it again.
What no claims discount protection is on offer?
Below is a table which shows the number of claims you can make with a protected no-claims bonus in a set timeframe before your NCB will reduce:
| Insurance provider | No of claims | Set period |
|---|---|---|
| AIG | 2 claims | 3 years |
| AXA | 1 claim | 1 year |
| FBD Insurance | 1 claim | 2 years |
| RedClick* | 1 claim | 1 year |
| 123.ie | 1 claim | 3 years |
*Previously Liberty Insurance. These figures relate to full NCB protection rather than step-back protection. Eligibility, costs and terms vary by policy and may change. Offers last checked September 2026.
What is step back protection?
Step-back protection is another way of protecting your no-claims bonus, which costs less.
If you make a claim, your discount may step back to a lower level. For example, you may lose one to three years of your bonus, or your no-claims bonus may drop from 60% to 40% depending on the insurer’s policy.
Step back no claims protection isn’t as comprehensive as standard no claims bonus protection, which is why it’s cheaper. You’ll need a minimum number of years NCB to be able to buy this add-on.
Is it worth protecting your no claims bonus?
If you’ve built up a large discount, protecting your NCB could save you money if you need to make a claim.
For example, the CCPC shows how a five-year NCB with a 75% discount could reduce a premium from €1,600 to €400.
Before adding protection, check how much it costs, how many claims it covers and how far your discount could fall without it.
Remember, it protects your discount, not the price of your policy. Your premium could still change after a claim.
Tips to find the best no claims bonus
If you haven’t claimed for five years or more, it makes sense to seek an insurer offering a generous no-claims discount, but follow these tips to ensure you’re getting the best value cover.
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