What Is the Claims-Free Discount?

Last Updated on December 11, 2025

Auto insurance companies offer many different policy discounts, and it can be confusing for new customers to sort through them all. One of the most valuable—and most common—savings opportunities is the claims-free discount. If you’ve gone several years without filing a claim, your insurer may reward you with lower premiums.

Here’s what the claims-free discount is, how to qualify for it, and how to keep it once you have it.

Key Takeaways

1. A claims-free discount rewards drivers who go several years without filing auto insurance claims, typically saving around 10%–30% on premiums.
2. Each insurer defines “claims-free” differently—some ignore small comprehensive or roadside claims, while others may remove the discount after any claim.
3. Everyone listed on your policy usually needs a clean recent claims history to qualify, so one driver’s claim can affect the whole household’s discount.
4. Paying small losses out of pocket and driving as safely as possible can help you keep (or earn back) your claims-free discount and lower your long-term insurance costs.

How Can I Qualify for the Claims-Free Discount?

Insurance companies give claims-free discounts to customers who have gone a certain number of years without making a claim on their auto policy. If you haven’t filed any claims recently, always ask about this discount when purchasing a new policy or renewing your old one.

While exact rules vary by company, claims-free discounts usually require:

• Several years with no chargeable claims – Often somewhere between 3 and 7 years, depending on the insurer and state.
• A clean recent claims history – Some companies only look at the past 3–5 years; others may look a bit further back.
• Eligible policy type and drivers – Some insurers only offer this discount in certain states or for certain coverage levels, and everyone listed on the policy may need to be claims-free.

Even if your insurer says they apply discounts automatically, it’s still worth asking your agent to confirm you’re getting every claims-free or safe-driver discount you qualify for.

Why Do Insurance Companies Offer This Discount?

When insurance companies calculate your premium, they’re really estimating risk—how likely you are to make a claim, and how expensive those claims are likely to be.

Drivers who file frequent or severe claims are more expensive to insure, so they pay higher premiums. Drivers who rarely (or never) file claims are cheaper to insure, so insurers compete harder for their business with better pricing and extra discounts.

If you haven’t made a claim in several years, that’s a strong signal that you’re a safe driver and a lower-risk customer. A claims-free discount is the insurer’s way of:

• Rewarding you for not costing them money in recent years
• Encouraging you to stay with them instead of shopping around
• Incentivizing ongoing safe driving and fewer future claims

How Much Will the Claims-Free Discount Save Me?

The amount you can save with a claims-free discount varies between insurance companies and states. Generally, you’ll see savings in the range of:

• 10% to 30% off certain coverages or your overall premium for staying claim-free
• Some insurers start at 5% and gradually increase your discount each year you go without a claim

Even a “small” claims-free discount can add up. For example, a 10% discount on a $1,500 yearly premium is $150 per year—$450 over three years—all for avoiding claims.

How Do Claims-Free Discounts Actually Work?

The definition of “claims-free” isn’t the same everywhere. Insurers have some flexibility, and state laws can also play a role. A few key points:

• Some companies are strict. For them, “claims-free” may mean no claims at all in the lookback period, regardless of fault or claim type.
• Others are more lenient. Many insurers ignore small, low-value comprehensive claims (like minor glass damage) or emergency roadside assistance claims when determining claims-free status.
• State laws may protect you. In some states, insurers can’t remove your discount for very small or “no-fault” claims.
• Some companies only penalize at-fault claims. The most generous plans won’t strip your claims-free discount for claims where you weren’t at fault, as long as the loss was clearly caused by another driver or a covered event.

On the other hand, a more stringent insurer may remove your discount as soon as you file any claim—even a small one. Always ask how your company defines “claims-free” and which types of claims could affect your discount.

To qualify in the first place, most insurers want at least five years of clean car insurance history. If you’re getting a policy for the first time, you likely won’t qualify until you’ve built up a few years of driving and insurance experience.

Also remember: if there are multiple drivers on your policy, the claims history of everyone can matter. If you’re on a plan with family members who have recent claims—but you don’t—you might get a better deal by moving to your own policy to qualify for claims-free and other safe-driver discounts.

How Can I Avoid Making Car Insurance Claims?

There are many situations where filing a claim is absolutely the right move—especially if there are serious injuries, major damage, or potential liability. You buy insurance to protect yourself from big financial losses, and you should use it when you truly need it.

However, for smaller incidents, it may be worth thinking twice before filing a claim. Here are some strategies to help preserve your claims-free status:

1. Consider Paying Out of Pocket for Minor Damage

After a minor accident, get an estimate from a reputable body shop. If the cost of repairs is close to your deductible—or only a bit more—it may be cheaper in the long run to pay for the repairs yourself.

Yes, paying out of pocket can sting in the moment. But by keeping your claims-free discount and avoiding a surcharge for a new claim, you might save far more over the next few years than the one-time repair bill.

2. Drive as Safely as Possible

The best way to avoid claims—and keep your discount—is to avoid accidents in the first place. That means:

• Always following the rules of the road
• Staying alert and avoiding distractions (put the phone away while driving)
• Leaving plenty of following distance to reduce rear-end collisions
• Avoiding driving when you’ve been drinking or taking medication that affects your alertness
• Driving more slowly in bad weather, heavy traffic, or unfamiliar areas

Even if you’ve had claims in the past, a long stretch of safe, claim-free driving can eventually help you regain your claims-free discount and lower rates again.

How Do I Make Sure I’m Getting the Claims-Free Discount?

If you think you meet the requirements but aren’t seeing a claims-free discount on your policy, take these steps:

• Ask your agent or company directly. Sometimes discounts are applied automatically, but it never hurts to double-check.
• Confirm your claims history. Review what claims your insurer shows on file, and correct any errors if they’re not accurate.
• Compare quotes. If your current insurer doesn’t offer a claims-free discount—or offers a smaller one than competitors—it may be worth shopping around.

If you’ve made a claim in the last few years, don’t panic. As time passes and you maintain a clean record, you can usually earn your claims-free discount back. The key is to avoid new claims and keep driving safely.

FAQs on the Claims-Free Discount

Final Word: A Simple Discount That Adds Up

The claims-free discount is one of the easiest ways to save money on car insurance—simply by not using your coverage for every small problem. By driving carefully, thinking twice before filing minor claims, and confirming you’re getting every discount you deserve, you can lower your premiums now and keep them lower in the future.

If your insurer doesn’t reward a clean record with a claims-free discount, it may be time to compare companies. Another carrier might value your clean history more—and be willing to prove it with lower rates.