How a No-Claims Bonus Works in Ireland

A no-claims bonus is the discount you build up for each year your policy runs without a claim. It is worth understanding properly before you renew or switch.

What it is, and how it builds

You earn a no-claims bonus for each full year of cover that passes without a claim on your policy. According to the Competition and Consumer Protection Commission, the bonus belongs to the policyholder – not to the car, and not to anyone named on the policy.

It is not only claims you choose to make. A claim made against your policy by someone else can affect your bonus too, which is why it is worth knowing where you stand before renewal.

The discount grows with each claim-free year and usually reaches its maximum after about five or six years. The scale and the maximum are set by each insurer, and yours will be shown on your renewal notice.

How to prove it

Your proof is a no-claims bonus letter from your current insurer. It is normally issued with your renewal notice, and you can ask for one at any time.

• It states how many consecutive claim-free years you have earned, and the policy they relate to.
• A new insurer will usually ask to see it before cover starts, or shortly afterwards.
• Keep every letter. Without proof, years you have genuinely earned may not be counted.

Moving it between insurers, and between cars

A no-claims bonus is transferable – switching insurer does not mean starting again, provided you can produce the letter. What it does not do is guarantee the same discount: each insurer sets its own scale, so the same claim-free record can be worth a different percentage elsewhere.

It also will not cover two cars at once. Citizens Information is clear that the bonus relates to one vehicle, so if you insure a second car you begin building a separate bonus on that policy.

Named-driver experience is a different thing again. Driving for years on someone else’s policy does not build a no-claims bonus in your own name, though some insurers record that experience separately and take it into account.

What happens if you claim

A claim can reduce your bonus or remove it. What actually happens depends on your policy and on any step-back arrangement or bonus protection it includes or you have bought.

The CCPC notes that a bonus can be affected even where you were not at fault – and that it may be restored if your insurer recovers its costs from the other party. It is worth asking about that if you are hit by someone else.

Where bonus protection is offered as an optional extra, read what it actually protects. It preserves the discount, not the premium, and your premium can still rise at renewal.

For minor damage to your own car, consider the policy excess and the possible effect on your no-claims bonus before deciding whether to claim. You should still notify your insurer of any incident that could lead to a claim, in line with your policy’s reporting requirements, even if you do not intend to claim yourself.

When a bonus lapses, and driving abroad

Time without cover can end a bonus. Many insurers will not accept a previous no-claims bonus after two years or more without insurance in your own name, so if you expect a long gap it is worth asking your insurer what happens to yours before the policy lapses.

If you have been driving abroad, ask your previous insurer for proof of your claims history. What is needed to apply it to an Irish policy – including documentation and any translation – depends on your circumstances, so talk to our agents on 0818 92 92 42 rather than assuming. If you are moving back to Ireland there is more to sort out than the bonus alone: see our guides on insurance with a foreign licence and getting insured when you come home.

Getting a quote

A Quick Quote asks how many claim-free years you have, so it helps to know your number before you start – you will need the letter itself before cover begins, not to get a quote. Have your registration number and licence details to hand as well.

We compare 14 different insurers to help you find cover that suits you. Compare car insurance quotes to get started.

Sources: CCPC – car insurance; Citizens Information – motor insurance. Last reviewed September 2026.