No Car, No Worries: Keeping Your No Claims Bonus Intact

A real concern for motorists when it comes to not owning or insuring a car for a while is that they might lose their No Claims Bonus (NCB), which can take years to build up. However, it’s not that black and white. Even with a gap in cover, your NCB can remain valid for a time, depending on your insurer.

As part of the Department of Transport’s Moving Together strategy, motorists in Ireland are being encouraged to consider their options for other means of transport that can be kinder to the planet as well as having other benefits such as being cheaper or good for your health.

If you are moving abroad, switching to public transport, or temporarily not needing a car, you often can preserve your NCB.

What is a No Claims Bonus?

An NCB is a discount provided by insurers to reward good driving. For every year that you don’t make a claim, your NCB discount grows up to a maximum amount. At some insurers, you need 9 years of claim-free driving before you reach the full amount, while at others you need 5 years. The maximum discount offered varies by insurer.

How long can you keep your NCB with a gap in cover?

The preservation of NCBs isn’t standardised amongst insurers so we must remember that it can vary by insurer and you should check with your provider. However, the standard market practice is typically a period of two years where you will be able to take out a new policy and take advantage of your NCB.

You could find yourself in a situation where you won’t have an active motor insurance policy on a car because you may have moved abroad to study or work, you could be giving your local public transportation a go for your mobility needs, or you might have sold your car and not immediately replaced it.

Safeguard your NCB During a Gap in Coverage

The best advice for ensuring that your NCB will remain intact when you have a break in coverage is to get in touch with your insurer and determine how your particular insurer treats a break in coverage. It’s a good idea to ask for written confirmation or documentation of your NCB at the end of your policy for future reference.

Getting Back on the Road

If you decide to start driving again within two years (a general guideline, not a rule – check with your insurer), you can go back to your old insurer and get a new policy, or take your NCB documentation to a new insurer where you can request a quote for a policy taking into account your NCB.

If your NCB has expired, you could take advantage of any time that you spent as a named driver on someone else’s policy thanks to Named Driver Experience.

Conclusion

Taking a break from car ownership doesn't mean losing all of your hard-earned NCB discount, just do your research with your insurer if you are planning to take a break from coverage. Be sure to keep your insurer informed, save your documentation and don’t forget to shop around if you are returning to the market for a policy.

Need More Assistance?

If you have further questions, you can contact Insurance Ireland’s Information Services team:

Email: feedback@insuranceireland.eu
Tel: (01) 676 1820