Do you need no claims bonus protection with your car insurance?
Do you need no claims bonus protection with your car insurance in Ireland?

Kennco insurance

Do you need no claims bonus protection with your car insurance in Ireland?


At Changing Lanes, we have teamed up with the experts at KennCo Insurance to explain what is no claims bonus protection and is it worth it.

A no-claims bonus is a discount a driver receives on their insurance premium based on the number of years they have held a car insurance policy without making a single claim.

The discount becomes higher the more years you’ve held your policy without an accident. A no-claims bonus only applies to the driver who has taken out the policy in their name. 

No Claims Bonus

A no-claims bonus will be worth a different amount to each insurer, but you will likely get a considerable discount if you have not made a claim in over five years or more. 

To earn a no-claims bonus, you must not have made a claim for an entire year on your policy, and this will reward you with a one-year no-claims bonus. The more years of claims free driving you build up, the more your insurance premium will decrease each year.

This is why drivers should consider protecting your no-claims bonus.

There are two options available to drivers to allow you to keep your no-claims bonus – Full No Claims Bonus Protection and Step Back No Claims Bonus Protection

1. Full No Claims Bonus Protection

When you take out your insurance policy, you will have the option to protect your no claims bonus. For an additional fee on your policy, your bonus will be protected even if you make a claim.

Purchasing a Full No Claims Bonus Protection is the most expensive option but does offer the most significant protection. So despite making a claim on your insurance cover, your no-claims bonus is still active. 

Some insurers may apply limitations to this, so make sure you know your insurer’s terms and conditions. These may include restricting the amount of time you can make a claim before your no-claims bonus is affected. Even with no claims bonus protection in place, some insurers may still factor your accident into account. 

2. Step Back No Claims Bonus Protection

Step Back No Claims Bonus Protection is when the policy holder protects part of their no-claims bonus. It typically costs less than full protection but offers you less cover too. This protection may apply when you’re at fault for an accident. Instead of losing all of your five-year no-claims bonus, you only lose two years and effectively ‘step back’ to having a three-year no-claims bonus. 

Benefits of No Claims Bonus Protection

There are several benefits to having no claims bonus protection, whether it’s a full no claims bonus protection or step back no claims bonus protection.

The following are good reasons why you should consider protecting your no claims bonus next time your car insurance policy is up for renewal:

  • Cost: Having a no claims discount will significantly decrease the cost of your car insurance. Without protection, you could lose it all in just one accident.
  • Security: By protecting your no claims bonus, you will be keeping your discount secure. You will continue to pay less on your premium even if you are involved in an accident. You could receive a reduction of up to 67% by having a full no claims bonus.

If you’re thinking of purchasing a new car insurance policy, follow this link to contact KennCo Insurance for a secure CAR INSURANCE QUOTE.

Kennco insurance


Now find out more about how younger drivers can get cheaper car insurance.