No claims bonus: Your questions answered

Building your no claims bonus is a great way to reduce your car insurance premium by rewarding claim-free driving. This guide explains how a no claims bonus works in Ireland, including how they are earned, transferred, protected, and affected by claims.

What's covered:

• What is a no claims bonus?

• Which vehicle types allow you to earn a no claims bonus?

• Can named drivers earn a no claims bonus?

• What's the maximum no claims bonus you can earn?

• Can I transfer my no claims bonus if I change insurance provider?

• Can I use the same no claims bonus on more than one policy?

• Can I transfer my no claims bonus to another car?

• How does making a claim affect my no claims bonus?

• FAQs

Note: While this guide reflects common market practice in Ireland, insurer approaches to no claims bonuses (NCB) and Named Driving Experience (NDE), including eligibility criteria and discount structures, can vary between providers.

What is a no claims bonus?

A no claims bonus (NCB), also known as no claims discount (NCD), is a discount on your motor insurance premium rewarded for each year you hold a policy in your own name without making a claim or having one made against you.

How does a no claims bonus work?

For each claim-free year you hold motor insurance in your own name, you build your no claims bonus. Essentially, the longer you remain claim-free, the larger the discount on your annual policy can become. Insurers use their own discount scales, so the percentage reduction and the number of years needed to reach the maximum varies by provider.

Note: A bigger bonus does not guarantee a cheaper overall premium, as insurers also consider other pricing factors. Check each quote to see the discount applied and compare the final premium, not the percentage alone.

Which vehicle types allow you to earn a no claims bonus?

Most personal-use vehicles can build up a no claims bonus. This includes:

• Car insurance

• Van insurance

• Motorbike insurance

• Taxi insurance

• Commercial vehicle insurance

Can named drivers earn a no claims bonus?

No, you generally build a no claims discount only when the policy is in your own name. However, named drivers can often build up a Named Driving Experience (NDE) discount through claim-free driving which is applied as an introductory discount when you take out your own policy.

Also read: Am I insured to drive other cars? Your 2026 guide

Eligibility, proof requirements and the discount offered vary by insurer, so check before arranging cover.

What's the difference between an NDE discount and a no claims bonus?

What's the maximum no claims bonus you can earn?

The maximum NCB you can earn varies by insurer, though most Irish insurers apply their maximum discount after five claim-free years (some continue recognising additional years). Once you reach your insurer’s cap, further claim-free years will not increase the discount. Check your no claims bonus certificate and policy terms to confirm the maximum that applies.

How long does a no claims bonus last in Ireland?

A no claims bonus generally remains valid in Ireland for up to two years from the date that your last policy expires. If you go more than two years without car insurance in your own name, most insurers will no longer recognise it.

Can I transfer my no claims bonus if I change insurance provider?

Yes, your no claims bonus belongs to you, not your insurer, so you will not lose it if you switch provider. You'll just need to provide proof of your NCB using your NCB certificate. Here's how you find it:

1. Check your renewal pack, as your no claims bonus certificate may be included with your policy documents.

2. Log in to your insurer’s portal and look for a downloadable copy.

3. Check your email or post if your insurer sends documents automatically.

4. Contact your current or previous insurer to request the certificate if you cannot find it. How does making a claim affect my no claims bonus?

Your new provider then will use your certificate to confirm how many years you've been claim-free and it will be transferred once your new policy is taken out.

Note: the percentage discount amount may be different with your new provider even though the number of years will remain the same, because insurers use different discount scales.

Can I use the same no claims bonus on more than one policy?

No. You can usually apply an earned no claims discount to only one policy at a time. If you insure a second vehicle, you must build a separate no claims discount for it. Using the same discount twice may be treated as premium fraud, so tell each insurer which policy carries your existing bonus.

Tip: Some insurers offer a discount on a second policy if you're the driver on both policies with that insurer.

Also read: Can you insure two cars in Ireland? Your 2026 guide

Can I transfer my no claims bonus to another car?

Yes. If you replace your car, you can usually transfer your no claims bonus to the new vehicle, provided the policy remains in your name. However, you can't use the same no claims bonus on both vehicles at the same time.

How does making a claim affect my no claims bonus?

A claim may reduce or remove your no claims discount, although the outcome depends on your policy and any protection included.

• At-fault claim: Your discount may be reduced or lost.

• Not-at-fault claim: Your bonus may initially be affected, but could be restored if your insurer recovers its costs from the other party.

Always check your policy’s no claims bonus rules.

No claims bonus Protection

No claims bonus protection is an optional insurance add-on that lets you make a limited number of claims without losing your earned discount. There are typically two types of NCB protection available:

• Step-back protection reduces your bonus by a set number of years or to a lower percentage, helping you retain part of the discount after a claim.

• Full protection preserves your full bonus after a claim, within the policy’s stated limits. Exact terms vary by insurer, so check how many years may be reduced and which claims qualify.

Does NCB Protection stop your premium increasing after a claim?

No. No claims discount protection protects your NCB only rather than your overall premium. Your premium may still increase after a claim based on your claims history or that of any named driver, as well as other risk factors taken into account at renewal.

This is a marketing article from Howden Insurance. The information in this guide is accurate at time of publication. This content is provided for general information only and does not constitute financial or insurance advice.