No Claims Bonus - If You Move Abroad?
by David Dungan | 2 min read January 15th, 2018
Moving abroad can be an exciting time but what do you do if you have an active car insurance policy? It's important to think about your car insurance before you head off as it could save you additional cost in the long run.
More generally, please find below some information and options you may find useful prior to your departure, grouped according to the length of time you plan to be abroad:
Less than 1 Year
An appropriate solution may be for you to suspend your active car insurance policy, if you are going to be living abroad for less than a year. If your car is not in use after a period of 28 days and you suspend your car insurance by returning your certificate and disc to us, you will receive a pro-rata refund of your last paid renewal premium for the period of suspension. Please note that a midterm adjustment fee of €20 may apply. You or any named drivers will not have any cover to drive your car during this period; but your car may continue to be protected against damage by fire or theft, depending on the terms of your specific policy and if you decide to maintain these covers. If your stay abroad extends into a new period of insurance then, cancelling the contract would be the better option.
Normal market practice in relation to a No Claims Discount is that it is valid for a period of 2 years from the lapsed or cancellation date; provided that it has not been transferred to another vehicle. So, if you plan to be abroad for less than 2 years, your No Claims Discount will still remain valid. Your No Claims Discount recognises your previous level of insured driving experience in your own name.
More than 2 Years
If more than two years have elapsed since your Irish motor insurance policy was lapsed / cancelled, your No Claims Discount is no longer valid. However, if you have a proven claims-free insured driving experience in a different country in your own name, we may take this experience into consideration if you seek a quotation from us on your return to Ireland, subject to the appropriate verifiable documentation being provided. This documentation will likely constitute a No Claims Bonus Statement and/or a letter of insured driving experience in respect of the relevant country. Please bear in mind that all documentation you gather abroad must be verifiable and contain as much detailed relevant information as possible, e.g. in respect of dates of cover, type of insurance held, certification of claims-free insured driving, etc.
At the outset, we would recommend that you satisfy yourself that your prospective insurance provider will be in a position to provide such documentation when the time comes to travel home; or better still, use the services of one of our affiliated companies, if one is operating in the relevant country.
Information correct as of date of publishing. This blog will not be updated or edited so the information may become outdated.