No Claims Discount

In Ireland, insurance companies offer a No Claims Discount (NCD) to reward motorists for safe driving. Some policyholders get confused and misunderstand what it is and how it applies to their car insurance policy. Let me cover some of the most frequently asked questions.

Father and son driving a car in Ireland with a No Claims Bonus.

What is a No Claims Discount?

No Claims Discount (NCD), also known as No Claims Bonus (NCB), is a discount that drivers get if they have not claimed on their car insurance in a certain number of years. This benefit is included in most insurance policies. The discount is offered to policyholders to motivate them to be more careful on the roads.

How do I apply for a No Claims Bonus?

The insurance company should offer you a discount on your annual car insurance for every year that you have held the policy and not made a claim. The higher the number of years you have the policy without making a claim, the bigger the discount. Essentially, the discount is offered to drivers who are considered less of an insurance risk.

When does a No Claims Discount expire?

In Ireland, it is valid for two years after your insurance policy expires. However, this only applies if you have not been involved in an accident or submitted a claim.

Can I apply my No Claims Bonus to my spouse’s car?

The short answer is no. You will have to accumulate a discount on each car. It is essential to disclose the main driver on both vehicles to the insurance provider.

What limitations apply to the No Claims Discount?

For the maximum discount, you must build up to 5 to 6 years without making a claim. A majority of insurance companies will take five years driving consecutively without submitting a claim or being involved in an accident into consideration when calculating your discount. Please note you must hold an insurance policy in your own name.

Can I transfer my No Claims Bonus to my new car?

Yes, but you must notify the insurance company of the details.

If I switch insurers, can I add my No Claims Discount to the new policy?

Yes, you can transfer the No Claims Discount to the new insurance company. They will require a No Claims Certificate from the previous insurer. Terms and conditions may apply.

Can I protect my No Claims Bonus in the event of a claim?

Yes, most insurers will offer No Claims Bonus Protection. This will protect your discount in the event you need to make a claim or someone claims against you. This is an optional extra which can be added to your policy.

How much will a No Claims Bonus save me on my car insurance policy?

Criteria may vary; some insurance companies in Ireland may offer over 50% off your car insurance policy.