What Is a No Claims Bonus (NCB)
A No Claims Bonus (NCB), also known as a No Claims Discount (NCD) or claims free bonus, is a reduction applied to your car insurance premium for each year you hold a policy in your own name without making a claim. This reduction acts as a financial incentive for safe, claim-free driving and is one of the main ways insurers in Ireland reward responsible motorists.
How your No Claims Bonus Builds Up
Your No Claims Bonus is measured in years and builds up annually. Each full policy year you complete in your own name without making a claim adds another year to your NCB, increasing the level of no claims discount applied to your car insurance premium. While discount structures vary between insurers, many providers offer their highest level of discount after around five or more consecutive claim-free years. The maximum No Claim Bonus you can earn with its4women is 10 years. Beyond this, we continue to record additional claim-free years even though the discount itself is capped.
1
1 Year Claim-Free
~10% Discount
2
2 Years Claim Free
20% Discount
3
3 Years Claim Free
30% Discount
4
4 Years Claim Free
40% Discount
5
5 Years Claim Free
50% - 70% Discount (Insurer Dependant)
How Claims Affect Your No Claims Discount (NCD)
Making a claim can reduce or remove your No Claims Bonus, depending on your insurer’s rules, the type of claim involved, and whether you have discount protection.
At-Fault Claims:
These claims usually have the greatest impact on your NCB. If you are held responsible for an accident or loss, your No Claims Bonus will typically be reduced at renewal unless you have NCB Protection in place.
Non-Fault Claims
In some cases, non-fault claims may not affect your NCB, particularly where the insurer can recover costs from the other party. However, this depends on how the claim is settled and your insurer’s rules.
Windscreen / Glass Claims
Some insurers exclude windscreen or glass claims from NCB calculations, meaning your no claims discount may remain unaffected. Not all insurers apply this in the same way, so policy terms should always be checked.
Multiple Claims
Making more than one claim within a short period can result in a greater reduction to your NCB, or in some cases the complete loss of your accumulated discount, depending on your insurer’s discount scale.
Note: a claim may be deemed at-fault if your insurer is unable to recover their losses from another party e.g. a hit and run.
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Protecting Your No Claims Bonus (NCB)
Understanding how to protect your No Claims Bonus can make a significant difference to your long-term car insurance costs. Protection options allow you to limit the impact of claims on your accumulated discount.
Transferring Your No Claims Discount to a New Insurer
In most cases, your No Claims Bonus belongs to you as the policyholder rather than to a specific insurance company. This means it can usually be transferred when you switch insurers or change vehicles, provided you are the main policyholder and can supply proof of your claim-free driving history. However, your No Claims Bonus can only be used on one motor policy at a time. Eligibility may also depend on the type of vehicle insured, and gaps in cover can affect how long your NCB remains valid.
No Claims Bonus Certificate
A No Claims Bonus Certificate is an official document issued by your insurer that confirms your claims-free driving record. This certificate is essential if you want to transfer your No Claims Bonus to a new policy with another provider. It provides written proof of how many years you have driven without making a claim, along with details of any claims that may have occurred during that period.
When you switch car insurance providers in Ireland, your new insurer will normally require a No Claims Bonus Certificate from your previous insurer to verify your discount. Many insurers issue this automatically when a policy ends, but you can also request it directly if needed. The certificate typically includes your name, policy number, vehicle registration, the number of claim-free years and any relevant claims information.
Having this certificate ensures you don’t lose the discount you’ve built up over time. It allows your No Claims Discount to be applied to your new car insurance policy without delay, helping you continue to benefit from your claims-free driving history and potentially reduce the cost of your car insurance premium. It also allows you to easily accumulate your claims free driving years even if you regularly change insurance providers.
Process of Transferring Your No Claims Bonus (NCB)
The process of transferring your No Claims Discount to a different insurer typically involves:
Notifying your old insurer that you are cancelling or switching your policy
Requesting proof of your NCB, ideally in the form of a No Claims Bonus Certificate
Notifying your new insurer that you wish to transfer your No Claims Bonus
Providing your new insurer with written proof of your No Claims Bonus.
In Ireland, renewal notices are not typically accepted by insurers as proof of No Claims Bonus. For a cancellation letter to be accepted, it must clearly state the same information found on a No Claims Bonus Certificate, including your name, policy details including the vehicle registration, and the number of claim-free years.