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No Claim Bonus: All you Need to Know

What is a No Claims Bonus?

A no claims bonus is the discount you earn for every year you are insured and do not make a claim on your policy. Each insurer’s discount scale varies. Typically, you can earn at least 10% for 1 year and 50% for 5 years claim free. Some Insurers will give extra discounts for up to 9 years claim free driving in your own name. So, make sure you mention this when you’re asking for a quote.

What happens to my No Claims Bonus if I have a claim?

Technically you could lose your entire no claims bonus if you have a claim. Most of First Ireland policies include some level of step back bonus protection. Whether it be “Step Back Bonus Protection” or “Full No Claim Bonus Protection”. The level of protection should be specified on your policy schedule.

Can I earn a No Claim Bonus as a Named Driver?

No – it is only the policyholder that can earn a no claim bonus. However, if you have been named on a private car or company car policy for at least one year, then First Ireland may be able to offer you an introductory no claims discount provided you have been driving claim free.

What is “Step Back Bonus Protection”?

If your policy includes “Step Back Bonus Protection”, then only part of your bonus is lost or “stepped back” following a single claim. The level which your bonus is stepped back is dependent on your insurer. For example, if you have a 5 years no claim bonus and your policy has a 2 year step back, then your bonus will reduce by 2 years which means you should be entitled to a 3 year no claim bonus discount at your next renewal.


What is “Full Bonus Protection”?

Most insures have an option to fully protect your No Claim Bonus. That happens by paying an extra premium once you are claim free and have the required level of earned No Claim Bonus. Some insurers may include limits on the number of claims, the value and type of claims you can make without effecting your no claim bonus. However, it is worth mentioning that if you are moving to a different insurance provider, then you will need to disclose all claims. That is regardless of whether your bonus was protected at the time of claim.

Can I use a “No Claim Bonus” that is earned outside of the Republic of Ireland?

The majority of Irish insurers only accept a No Claims Bonus earned within the Republic of Ireland. First Ireland may be able to honour a No Claim Bonus earned in an EU country or other agreed country provided the expiry date is less than 2 years. If so, acceptance and validation of your foreign No Claims Bonus will be required prior to granting cover.

Can I use my “No Claim Bonus” on more than one car?

Unfortunately, not. You will need to earn a separate no claims bonus for each policy you have. However, First Ireland may be able to offer you an introductory discount on a second vehicle.

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