A no claims bonus, or no claims discount, allows you to make savings on insurance cover. Your insurer will give you a discount for each year you are claims free.
If you have motor insurance, your no claims bonus rewards careful driving and car, van, motorcycle, tractor, and commercial vehicle insurance will all offer a no claims discount.
Although normally associated with motor insurance, you can get a no claims discount on your home insurance as well. If you are claims free over a number of years, your insurer will offer you a discount on your home insurance.
If you are a careful driver, or you do not make a claim on your insurance policy, you can build up a no claims bonus over time. Your insurer will give you a discount for each year that you are claims free, usually up to 9 years.
No claims discounts can be as much as 75%, so it is worth checking the no claims discount offered by your insurer as you may save with another insurer.
Not all claims on your motor insurance will mean that you lose your no claims bonus. If you are not held to be responsible or liable for causing an accident, then another driver may have to claim on their insurance, meaning that your no claims bonus is not affected.
Often you can claim for windscreen damage, breakdown assistance, or fire brigade charges without affecting your no claims bonus.
No claims bonus for home insurance?
With home insurance, you may be able to make some claims also without affecting your no claims bonus such as claims for lock damage or calling their assistance line.
Most claims on your home insurance, however, will mean that you lose your no claims bonus. Larger claims such as for flooding, escape of water, or fire will certainly mean that you will lose your no claims bonus on your home insurance.
You can also choose to protect your no claims bonus on your car or, in some cases, your home insurance with either step back no claims discount protection or full no claims discount protection.
‘Step back’ no claims bonus protection
Step back no claims discount protection means that you can make a certain number of claims on your motor or home policy without having to lose all of your no claims discount. You may lose the equivalent of two or three years (or points) on your no claims bonus rather than start from scratch.
Full no claims bonus protection means that you can claim on your insurance policy and keep your no claims bonus in full.
Both step back and full no claims bonus protection are subject to a maximum number of claims and/ or a maximum amount claimed, depending on the insurer.
Both forms of no claims discount protection are usually additional options for which you will pay extra premium and are often only available on comprehensive motor insurance policies.
Types of insurance that offer a no claims bonus
A no claims bonus is usually offered on motor and home insurance products. You can build up your no claims bonus over time by having motor or home insurance without claiming in your policy.
Motor insurance on most vehicles will offer a no claims bonus for the policyholder only. Motor insurance includes insurance for:
Some forms of motor insurance will not offer a no claims bonus as they are not intended to cover the driving of the vehicle as a primary vehicle. These types of motor insurance may ‘mirror’ the no claims bonus you have on your primary vehicle and offer a discount if you do limited mileage and are an experienced and careful driver. This would be the case for:
Home insurance discounts
Although usually associated with motor insurance, you can get a no claims discount with some home insurers also. Many home insurers will offer discounts of up to 50% if you have a certain number of years claims free.
It could be worth checking if you can get a discount on these types of home insurance:
Buildings and contents home insurance
Contents only home insurance
Renters home insurance
Landlords home insurance
Holiday Home insurance
Mobile Home insurance
How much can you save with a no claims bonus?
Insurers offer varying no claims discounts for motor and home insurance. Here are some examples:
How many years does a no claims bonus increase for?
With most insurers, you can continue to accrue a no claims bonus for up to 9 years claims free driving. At this stage, if you have not had a claim, you may find that your motor insurance is affordably priced in any case.
Can you bring a no claims bonus with you when switching companies?
Yes. You will keep your no claims bonus if you switch insurers at the end of your insurance period. Your insurer will usually send you a document outlining how many years no claims bonus you have when they send you a renewal letter.
Be aware, though, that if you switch to another insurance company mid- year that that year will not be included in your no claims bonus.
No claims bonus FAQs
We have put together a list of the most commonly asked questions.
Although you may receive an introductory discount, and if you have named driver experience this may get you a discount on your first car insurance policy, the first time you take out car insurance in your own name you will not be eligible for a no claims bonus.
Your no claims bonus will last for two years if you have a break in cover or if you move abroad.
After that time, you will have to get insurance without a no claims bonus if you then need insurance.
Your no claims bonus must be earned in Ireland, although some insurers will consider overseas driving in the EU, UK, Australia, New Zealand, Canada or the US and offer you a discount based on safe driving overseas.
You may achieve savings with a multi car policy if you have more than one vehicle. You are only allowed one no claims bonus, but if the cars are driven primarily by other drivers in your household, each will have their own no claims bonus.
Yes. Both car and home insurance are available without a no claims bonus, although you may pay a higher premium initially.
It is worth checking if any insurers specialise in new drivers eg. 123Go, AIG, or first time home insurance customers eg. Liberty as these insurers may be willing to offer a more affordable price to those who are new to car and/ or home insurance.
Remember, even if your first time premium is high you will build up a no claims bonus over time, and a kjkno claims bonus is not the only factor determining insurance prices.
Find out how much you can save with no claims bonus today
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