Claim-Free Discount: How Much Can You Save?
Nearly every major auto insurance company offers a claim-free discount to qualifying insureds, but the discount may or may not be available in every state. The amount you save with a claim-free discount varies; for example, the claim-free discount from State Farm is about 15%, while the claim-free discount from Allstate is about 35%. You’ll need to speak with your insurer to determine what is considered a claim (aside from an at-fault accident) that may disqualify you from this discount.
- You can save anywhere from 10% to 35% on your car insurance rates with a claim-free discount
- Most major insurance companies offer a claim-free discount
- You’ll need a claim-free record for between three and five years to qualify for a claim-free discount
If you’re looking to save on your auto insurance rates, one way is to ask about discounts like the claim-free discount. Read this article to find out exactly what the claim-free discount is, how to qualify, which companies offer it, and more.
Ready to shop for affordable claim-free discount auto insurance? Use your ZIP code in the free tool on this page to compare claim-free discount auto insurance rates today.
What is a claim-free discount, and how does it work?
Companies typically offer a claim-free discount to drivers with no at-fault accidents on their driving record and who have not filed any claims with their insurer within a specific time period (meaning the insurance company hasn’t had to spend money on payouts for the drivers).
Car insurance discounts like the claim-free discount can save you money, so it’s worth exploring whether or not you qualify.
So how do you qualify for a claim-free discount? In most cases, you’ll need a claim-free driving record for between three and five years.
What is the best claim-free discount auto insurance company? Read through the next couple of sections to learn exactly what qualifies as a claim, which companies offer a claim-free discount, and how much you can save.
What is considered a “claim”?
Not every insurance company defines claims the same way when it comes to your claim-free discount, and where you live is also a factor. Companies will always consider an at-fault accident a claim, meaning it will automatically disqualify you from the claim-free discount.
If you’re in an accident in which the other driver is at fault, and no claims are filed against you (or by you) to your insurance company, you’ll probably keep your claim-free discount.
Examples of claims that may not affect your claim-free discount auto insurance include comprehensive claims of less than $1,000, emergency road service, and glass claims. In the case of these three examples, state law will be the determining factor in whether or not companies can count these claims against you.
Ways you can reduce the risk of getting in an accident or another traffic incident that results in a claim include following all traffic laws (NOLO’s driving laws site summarizes state laws), driving defensively, paying close attention to your surroundings, minimizing any distractions, and keeping up with vehicle maintenance.
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Which companies offer a claim-free discount, and how much can you save?
Most major insurance companies offer a claim-free car insurance discount, though the amount you’ll save varies. For example, with a claim-free discount from State Farm, you can save up to 15%, but with a claim-free discount from Allstate, you’re looking at savings of up to 35%.
Take a look at this table for more on which companies offer a claim-free discount.
|Insurance Companies||Offers Claim-Free Discount and Amount Saved|
|21st Century||Yes, Varies|
|American Family||Yes, Varies|
|Country Financial||Yes, Varies|
|Liberty Mutual||Yes, Varies|
|Safe Auto||Yes, 10%|
|State Farm||Yes, 15%|
|The General||Yes, Varies|
|The Hanover||Yes, 15%|
|The Hartford||Yes, Varies|
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While all of these companies offer a claim-free discount, it may not be available in your state (USAA’s claim-free discount is not available in Hawaii, for example). Check with your insurance company to find out if the claim-free discount is available where you live.
Claim-Free Discount: The Bottom Line
Nearly all major insurance companies offer a claim-free discount. You’ll need to have a claim-free record with the company for between three and five years to qualify. You’ll need to speak with your insurer to determine what is considered a claim because this can vary by company and even by where you live.
You can save up to 35% on your rates with a claim-free discount, so be sure to drive safely, follow all posted traffic signs, and minimize distractions to avoid getting in an accident.
Ready to buy auto insurance with a claim-free discount? Enter your ZIP code in our free tool to start comparing claim-free discount auto insurance quotes right now.