For drivers, building up a no claims bonus is the best way to get a discount on the cost of car insurance – but how much do you really get off your premium?
Well, it mainly depends on how many years No Claims Bonus (NCB) you have worked up by not claiming on your policy. Typically, a driver receives a year’s NCB provided they do not make a claim during the whole 12 month insurance period. Each year that is built up equates to a 10% discount. For example, if you have a NCB of 4 years, that means you are entitled to a discount of 40% off your premium from your insurer when you renew cover.
Of course, there is a limit as to how much No Claims Bonus you can use. Most insurance companies in Ireland will only allow a maximum 50% discount for your No Claims Bonus – even if you have earned far more than 5 years bonus. However, there are some insurers (who are available through us) who offer discounts of up to 75% for people who have over worked up more than 5 years NCB.
While you can use your earned NCB to get discounts as long as you avoid making a claim, you can protect your NCB by either taking out Step-Back or Full No Claims Bonus Protection, both of which will stop you from losing all of your NCB should you be unfortunate enough to have to make a claim.