How a No Claims Bonus Works


A No Claims Bonus (NCB) is a discount on the overall cost of your car insurance premium. This discount is based on how many years you have held a car insurance policy without making a claim. With insurance companies offering significant discounts, your No Claims Bonus can make a big difference to your annual car insurance premium.

Knowing how a No Claims Bonus works comes in handy when you are taking out car insurance for the first time, renewing your policy, making a claim or switching insurance providers.

This helpful guide explains how the discount works, what happens to your NCB when you make a claim, and how to protect your No Claims Bonus.


How much is a no claims discount?

The discount amount varies between car insurance companies. It also varies depending on how long you’ve held a car insurance policy without making any claims. The discount is usually a percentage rather than an amount, and the discount increases for each consecutive year that you are claim-free, but often subject to a maximum, which varies from company to company. Please note minimum premiums may apply.

For example, let’s say an insurance company offers a no claims discount of 30% for three years without any claims. If your car insurance premium is €1000, applying your no claims discount the amount would drop to €700.  


What’s the maximum No Claims Bonus I can get?

You build up your No Claims Bonus over the years. For every year you do not make a claim against your insurance policy, the NCB discount grows. However, most insurers cap the number of years for which it warrants a discount. When you reach this level you will receive the maximum discount given for not making a claim. Please note minimum premiums may apply.

Here at Allianz, the maximum No Claims Bonus is 9 years. 


Can I build up No Claims Bonus on more than one car?

Unfortunately, not. You can only build up a No Claims Bonus on one insurance policy at a time.


Who can build up No Claims Bonus?

Only the policyholder can build up a No Claims Bonus. However, a named driver can build up named driving experience with Allianz, which will convert into a No Claims Bonus, often called an introductory no claims discount.


Will a claim affect my No Claims Bonus?

This depends on the type of car insurance policy you have. Usually though, when you do make a claim you will lose some or all of your No Claims Bonus. 

If you are in an accident that wasn’t your fault and you claim off the other driver’s car insurance policy, this won’t affect your No Claims Bonus. However, if you are in an accident and the other driver makes a claim against you, this will affect your No Claims Bonus but not the other driver’s. 

If you make a claim because your car was stolen or damaged this will also affect your NCB.


How do I protect my No Claims Bonus?

Many drivers are fearful of losing their discount, so it is good to know that there are two different ways to protect your No Claims Bonus. 

 o     Protected No Claims Bonus

Protected No Claims Bonus is an optional extra that you can take out with your car insurance cover that allows you to make a specific number of claims per year without your No Claims Bonus being affected.

For example, if you have Protected   No Claims Bonus with Allianz, you can have one unlimited third party or accidental damage claim in any three year renewal period without your NCB being affected.  Additionally,  claims made in the case of fire, theft or windscreen damage will also not impact your bonus.

However, if you make a second claim in the same three-year renewal period, your No Claims Bonus will step back by three years. In the event of a third or        subsequent claim in the same consecutive three-year renewal period, your No Claims Bonus will be reduced to Nil.

    o    Step-back No Claims Bonus Protection

Having Step-back No Claims Bonus Protection means that just part of your NCB will be affected. Here at Allianz, our Step-back No Claims Bonus Protection means that if you make one claim, your NCB will be reduced by just three years. So, if you have five years NCB and you have one claim, your bonus will reduce to two. If you have a second  claim, your bonus will reduce to nil. 

Step-back No Claims Bonus Protection costs less than taking out full No Claims Bonus Protection. However, you must have a minimum four years NCB in your own name (not as a named driver) to avail of Allianz’s Step-back No Claims Bonus Protection. 


Can I switch my No Claims Bonus to another insurer?

Yes, if you switch car insurance providers you can transfer the number of years No Claims Bonus you have. You need to request a Proof of No Claims Bonus from your previous insurer and send it to your new insurer as confirmation of your NCB. This document is usually issued with your renewal notice. 


Can I keep my No Claims Bonus if I don’t have insurance?

Say, for example, you’ve sold your car or you move abroad temporarily and no longer need car insurance, your No Claims Bonus remains valid for two years with Allianz. If more than two years have elapsed since your last Irish motor insurance policy expired, then your No Claims Bonus is no longer valid and goes back to zero.


Can I still get insurance with zero No Claims Bonus?

Yes, of course. Allianz takes lots of things into consideration when finding the right car insurance policy for you. Your No Claims Bonus is just one of many factors that affects your premium. 

You can get a quick car insurance quote online here.

Minimum premium of €284 applies. Allianz p.l.c. is regulated by the Central Bank of Ireland. Standard acceptance criteria and policy conditions apply.