Having a good no claims bonus can help make your car insurance much cheaper. Here’s how it works, how much discount you can get, and whether it’s worth protecting it.
It’s a discount on your car insurance, that varies depending on the number of consecutive years you’ve not made a claim.
The more claim free years you have, the bigger your discount will be.
If you do make a claim, you may lose some or all of your NCB, unless you’ve paid to protect it.
Each year you have car insurance in place and don’t make a claim you’ll accrue an extra year of no claims.
Each insurer then applies its own discount scale in relation to the number of years of no claims you have. Some insurers offer a discount after just one year, while others may not start it until later.
To get the maximum bonus, you usually need at least five years of no claims.
Your bonus can’t be passed on to someone else and it can only be used on one vehicle.
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 what discount the main car insurers in Ireland offer:
|Insurance provider||Maximum discount||No of NCB years|
|FBD Insurance||75%||5 years|
|Liberty Insurance||60%||9 years|
|The AA||50%||5 years|
Yes, it can do. To get the maximum discount, a minimum premium may apply.
There may also be underwriting rating factors that can affect the discount you’ll receive.
For example, when you apply for a quote, the information you provide e.g. driving history, vehicle details and personal details, will determine the premium you’re offered and amount of no claims discount you’ll get.
The quote should include a breakdown of how the no claims discount will be affected following one or more claims.
Yes, you can pay extra to protect your no claims bonus. This could stop you 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. However, if you made a second claim it may reduce your discount to zero.
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.
If you don’t pay extra for no claims protection and make a claim, you won’t always lose all of your no claims bonus. Some policies offer reasonable protection as standard and you may just lose part of your bonus.
Below is a table which shows the number of claims you can make with protected no claims bonus in a set timeframe, before your NCB will reduce:
|Insurance provider||No of claims||Set period|
|AIG||2 claims||5 years|
|AXA||1 claim||1 year|
|FBD Insurance||1 claim||2 years|
|Liberty Insurance||1 claim||1 year|
|The AA||1 claim||3 years|
|123.ie||1 claim||3 years|
No. Whether you have no claims bonus protection or not, some claims won’t count against you. These typically include:
Policy terms may differ, so always check the full details.
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 a percentage e.g. 20%, depending on what the insurer’s policy is.
Step back no claims protection isn’t as comprehensive as standard no claims bonus protection but this is also reflected in the price.
You’ll need to weigh up how much protection you want against the added cost to your policy.
As with no claims bonus protection, you’ll need a minimum number of years NCB to be able to buy this add-on.
Yes, some insurance providers will accept no claims earned in the UK, but check first.
Not usually, but it’s worth shopping around because some providers who specialise in insurance for young drivers may take this into account.
There are also some insurers that offer introductory bonuses for having some experience as a named driver, even without a no claims discount.
You may need to provide proof of how long you’ve been a named driver for.
Yes, you can transfer your claim free period by providing proof to your new insurer within a set period of starting a new policy. You should receive a NCB certificate at the time of renewal.
If you don’t provide proof in time or it doesn’t match what you’ve declared, your premium may change. This could result in an increase or refund, depending on whether your no claims are lower or higher than you declared.
You can keep your bonus until you’ve made the maximum number of claims allowed before it reduces.
This varies from insurer to insurer and it also depends if you’ve paid to protect your NCB, so you’ll need to check the policy details.
If you can provide an explanation for a gap in cover and it’s not more than a specified period e.g. two years, some insurers may let you keep the level of your no claims discount.