Receiving penalty points or a driving conviction is something every motorist hopes to avoid. Whether you’ve been caught speeding, using a mobile phone while driving, driving without insurance, or have received a more serious conviction, it’s natural to wonder how it will affect your car insurance.
The good news is that a conviction or penalty points won’t automatically prevent you from getting insured. However, they can affect your insurance premium, limit the number of insurers willing to offer cover, and in some cases impact your no claims bonus.
What Are Penalty Points?
Penalty points are recorded on your driving record when you are convicted of certain driving offences. The Irish penalty points system was introduced in 2002 to encourage safer driving and reduce deaths and serious injuries on Irish roads. Since 2022, legislation has become stricter and fines for some offences have doubled, such as:
- Speeding
- Mobile phone use
- Non-wearing of seatbelts
- Failure to ensure that a child is properly restrained
Certain fines relating to safety offences committed by learner and novice drivers have also increased.
Penalty points remain on your driving record for three years from the date of the offence. If your driving licence expires during that period, the three-year timeframe is paused until the licence is renewed. It’s important to remember that penalty points appear on your driving record, not on the physical licence itself.
Do Penalty Points Affect Car Insurance?
Yes, but perhaps not as dramatically as many drivers expect.
Most insurers will still quote for drivers with a small number of penalty points – usually up to four. Once you accumulate more than four points, the number of insurers willing to provide quotations can reduce significantly. While some major insurers may become more cautious when considering drivers with six or more points, specialist insurers and underwriting agencies often continue to provide cover for convicted drivers.
This is why working with First Ireland can be particularly helpful. As a broker, we can compare a wider range of specialist insurers and work alongside you to find the most suitable cover based on your circumstances.
Why Do Insurers Consider Penalty Points?
Insurance companies calculate premiums based on risk. Drivers who have accumulated penalty points are viewed as being statistically more likely to make a claim in the future. As a result, insurers consider factors such as:
- The number of penalty points
- The type of offence committed
- How recently the offence occurred
- Previous claims history
- Overall driving experience
The more serious the conviction or the greater the number of points, the greater the potential impact on your premium.
Do I Have to Tell My Insurer About Penalty Points?
bsolutely. When applying for insurance, renewing a policy, or making a claim, you must disclose any relevant driving convictions or penalty points. Failing to disclose this information could lead to:
- Claims being refused
- A policy being cancelled
- Difficulties obtaining insurance in the future
Honesty is essential when dealing with insurers. If you’re unsure whether something needs to be declared, speak with your insurer or broker before proceeding.
Can Penalty Points Lead to Disqualification?
Yes, if you accumulate 12 penalty points within a three-year period you will automatically be disqualified from driving for six months. Learner and novice drivers face a stricter threshold and may be disqualified after accumulating seven penalty points.
Once disqualified, you must surrender your licence to the National Driver Licence Service within 10 days. Following the six-month disqualification period, the points that led to the ban are removed from your record.
Driving Convictions and Car Insurance
Penalty points are only one type of driving conviction. More serious offences, including driving without insurance, dangerous driving, drink driving or drug driving convictions, can have a far greater impact on your ability to obtain affordable insurance.
Many insurers will continue to offer cover, but premiums may increase significantly and your insurer options may be more limited.
In these situations, specialist insurance providers can often offer solutions for drivers with convictions who may struggle to obtain cover through standard insurance channels.
Driving Without Insurance: The Hidden Cost
Driving without insurance is one of the most serious motoring offences from an insurance perspective. Penalties for driving uninsured in Ireland are serious, and include;
- Fines up to €5000
- 5 penalty points
- Up to 6 months in prison
- Driving disqualifications
In addition to the immediate penalties, driving without insurance can make obtaining affordable cover much more difficult in the future. For this reason, it’s never worth risking driving uninsured, even if you’re concerned about the cost of cover due to existing penalty points or driving convictions.
Can a Driving Ban Affect Your Insurance?
Yes. A driving disqualification is considered a serious risk factor by insurers. While many insurers will still consider providing cover once your ban ends, you can expect fewer insurer options and potentially higher premiums.
A driving ban may also have consequences for your no claims bonus, particularly if the disqualification lasts for an extended period.
What is a No Claims Bonus?
A no claims bonus (NCB), also known as a no claims discount, rewards drivers for maintaining a claims-free driving record. Each year you drive without making a claim, you earn a greater discount on your car insurance premium. Generally:
- You begin earning a bonus after one year of claims-free driving
- The discount increases annually
- Most insurers apply the maximum no claims discount after five years
A strong no claims bonus can substantially reduce the cost of your insurance over time.
Can you Lose Your No Claims Bonus?
Yes. Making a claim is one of the most common reasons drivers lose part or all of their no claims bonus. An important thing to remember is that this can happen regardless of who was at fault.
For example, your no claims bonus could be affected if:
- You are involved in an accident and claim on your policy
- Your vehicle is stolen
- You need to make a claim following damage caused by an uninsured driver
Some insurers operate a “step-back” system, where your no claims bonus is reduced rather than removed entirely. No claims bonus protection is also available as an optional add-on with some insurers which allows drivers to preserve their earned discount even after a claim (subject to the insurer’s terms and conditions). While this protection can help to maintain your discount, it does not prevent an insurer from increasing your overall premium following a claim.
What Happens to a No Claims Bonus After a Driving Conviction or Disqualification?
A driving conviction alone does not automatically remove your no claims bonus. However, if you are disqualified from driving for more than two years, you may lose your accumulated no claims bonus altogether.
Similarly, if you do not maintain insurance in your own name for two consecutive years, many insurers will allow your no claims bonus to lapse. This can result in substantially higher premiums when you return to driving.
Getting Insurance with Penalty Points or Convictions
Having penalty points or driving convictions doesn’t mean you can’t get insured.
Many insurers continue to offer cover to drivers with minor convictions, while specialist insurers cater specifically to drivers with more extensive driving records. The challenge is often finding the most competitive price and suitable cover.
As an experienced convicted driver insurance broker, First Ireland can compare policies from a range of specialist insurers and compare the market to help you find the best available option for your individual circumstances.
Need Advice or a Quote with Penalty Points or Convictions?
Whether you need advice about getting back on the road following a conviction, have a high number of penalty points, or have recently lost your no claims bonus – all is not lost. We will work on your behalf alongside our specialist insurers to help you get back on the road.
We recommend speaking to our dedicated team over the phone for the most detailed advice. You can also request a quote online and a member of our team will be in touch:
