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Claim-Free Car Insurance Discount

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Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Jan 20, 2021

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Key Takeaways

  • You can save up to 35 percent on your premiums with a claim-free car insurance discount. However, the average savings for this discount is closer to 20 percent.
  • Remaining claim-free means going a specific number of years without filing any car insurance claims, for any reason. The specifics vary by the insurance provider.
  • Currently, at least 22 national insurance providers offer a claim-free discount. However, local agencies near you might also provide this discount.

Car insurance is a legal requirement in most states, but sometimes years pass by without you ever filing a single claim. Did you know you could save up to 35 percent on your annual premiums with a claim-free car insurance discount?

When you go long periods of time remaining claims-free, your insurance provider will view you as a less-risky driver. To both reward you and thank you, your provider may give you a substantial discount on your annual rates. Read through our brief guide to learn what insurance companies offer the biggest no claims discount, and take advantage of the savings to secure cheap car insurance.

Every insurance provider offers different discounts with different levels of savings. Whether you’re looking for a claim-free car insurance discount, or something else, enter your ZIP code into our FREE quote tool above to immediately compare rates from reputable insurers near you.

What car insurance companies offer a claim-free car insurance discount?

According to a database report from the National Association of Insurance Commissioners (NAIC), collision claim frequency increased by 4 percent from 2014 to 2016, and the loss per collision claim increased by 9 percent.

However, many drivers still go years without ever filing a single car insurance claim. If this sounds like you, then it’s time to ask about a claim-free car insurance discount.

But what companies offer this discount? And what are the claim-free car insurance discount rates? Find out by looking at the table below. If specific rates are available, it’s included in the data.

Claim Free Discounts Offered by Car Insurance Company
CompaniesClaim Free Discount Offered
21st CenturyYes
AAAYes
AllstateYes - 35%
American FamilyYes
AmeripriseYes
AmicaYes
Country FinancialYes
EsuranceYes - 25%
FarmersYes
GEICOYes - 26%
Liberty MutualYes
MetLifeYes - 20%
NationwideYes - 10%
ProgressiveYes
Safe AutoYes - 10%
SafecoYes - 20%
State FarmYes - 15%
The GeneralYes
The HanoverYes - 15%
The HartfordYes
TravelersYes - 23%
USAAYes - 12%
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As you can see, there are plenty of affordable claim-free car insurance discounts available. The average percent of savings you’ll receive through a claim-free discount is around 20 percent.

Allstate provides the biggest no-claim discount, knocking 35 percent off your annual premiums. Nationwide and Safe Auto only take off 10 percent.

These discounts might vary by state, as car insurance laws and regulations are different based on where you live.

What is a claim-free car insurance discount?

A claim-free discount is a way for insurance providers to reward customers for their loyalty and safe driving habits. If you go for a set number of years without ever filing a single claim, your provider might take a small percentage off of your annual rates.

Claim-free discounts are sometimes also referred to as safe-driver discounts. Be careful not to confuse this with discounts that require drivers to use mobile apps to track driving habits.

But what exactly counts as a claim? A claim can be anything from reporting windshield damage to an at-fault accident. It depends on your local and state car insurance laws.

You could file a liability claim, collision claim, or even a comprehensive claim. What does liability insurance cover? Liability insurance is required in most states and pays for damage to the other vehicle and driver in an accident you’re found at-fault for.

What is collision insurance and what does it cover? Collision coverage is optional and protects your vehicle from damage that happens when the car is in motion. This includes hitting another vehicle, or an object like a tree or pole.

Comprehensive coverage, on the other hand, protects your vehicle from damage that happened when not in motion. Many states do not allow comprehensive claims to revoke your claim-free discount.

According to the Insurance Information Institute (III), in 2018 1.1 percent of drivers with liability insurance filed a bodily injury claim, and another 3.9 percent filed a property damage claim.

The average cost of a bodily injury claim was $15,785. For a property damage claim, it was $3,841. Of those with collision insurance, 6.1 percent filed a claim. The average cost was $3,574.

How can I qualify for a claim-free car insurance discount?

To qualify for a claim-free discount, you should first verify that your provider offers this type of discount. Next, don’t file any car insurance claims.

Depending on what insurance company you use, you might also be required to have five or more years of driving experience as well as a full history of continuous coverage. Sometimes a severe traffic violation, like a DUI, can cause you to lose your claim-free discount.

Insurance providers usually apply the discount as soon as you’ve earned it, but you can also ask your agent directly if you are concerned.

Each provider will have slightly different rules in place for customers to qualify for this discount. For example, to get 26 percent off of your GEICO premiums, you must be claim-free for five full years. However, through State Farm, it’s only three years of accident-free driving and a 15 percent savings.

Essentially, if all drivers on your policy have gone 3 to 5 years without an at-fault accident claim, and you’ve maintained continuous coverage, you should qualify for this discount.

When in doubt, ask your insurance agent about the specific requirements for qualifying for your provider’s claim-free discount.

How much can I save with a claim-free car insurance discount?

Remaining claim-free can save you as much as 35 percent annually on your car insurance rates. Plus, you’re saving yourself from experiencing the headaches associated with the claims process.

Claim-free car insurance discount rates vary based on what company you use. But the average no-claim discount is close to 20 percent. Car insurance discounts stack, so take advantage of as many as you can qualify for.

Your insurance provider might not realize you’re eligible for certain discounts. So never hesitate to ask.

You are now ready to find a claim-free car insurance discount from the provider who best meets your needs. To ensure you’re getting your best rates, always compare quotes from multiple different companies.

Enter your ZIP code into our FREE online quote tool right now to receive quotes from reputable providers near you, and ask about a claim-free car insurance discount.

References:

  1. https://content.naic.org/article/news_release_naic_releases_20162017_auto_insurance_report.htm
  2. https://www.iii.org/fact-statistic/facts-statistics-auto-insurance

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