What Is the Claim-Free Discount?

Everyone wins if you never need to use your auto insurance to cover medical bills or vehicle repairs. Insurers encourage this behavior from policyholders by offering a claim-free discount.
Driver filling out insurance claim form

Your history of filing claims is a rate factor insurers use to determine the cost of your policy. The reason is that they cost your provider time and money. This is why insurance companies reward you for keeping a clean driving record. One way they show appreciation is by applying a claim-free discount to your premium.

In this article:

How the Claim-Free Discount Works

Insurers love policyholders that drive carefully and some offer a claim-free discount as a reward. Qualifying is easy, just avoid filing a claim for three to five years (the same period they remain on your record). This may seem like a long time, but millions of people manage this. And you can, too.

Many providers also offer special rates for safe drivers that take both your claims history and driving record into account. However, despite any similarities, the two rewards differ substantially. The claim-free discount focuses only on whether you’ve filed a claim with your insurer. For instance, you might require a windshield replacement if a rock shatters it. Not your fault, but if you ask your insurance company to fix it, you’re no longer eligible.

Insurers With Claim-Free Discounts

Only a few major insurers have an official claims-free discount on their websites. That doesn’t necessarily mean that your safe driving will go unrewarded if your provider doesn’t list it on theirs, however. Many insurance companies reward policyholders that manage to at least three years without an accident.

Below are top insurance companies who either reward customers that don’t file or will offer you an incentive for avoiding car accidents:

Liberty Mutual

Liberty Mutual offers a discount when you keep your record clean for three to five years. The insurer doesn’t say how much this benefit will lower your rates. Be sure to speak with your agent or contact Liberty Mutual directly to learn more.

State Farm

State Farm rewards accident-free drivers with lower rates when they avoid crashes and don’t file a claim for at least three to five years. The exact savings you could expect aren’t posted on State Farm’s website. You’ll need to reach out to your agent for details.

Amica

Amica also offers a claims-free discount. To qualify, you must go three years without requesting compensation after an accident and have at least one driver on your policy with 39 or more months of driving experience. The exact savings are unclear. Be sure to speak with an agent or Amica representative to learn more.

USAA

USAA offers a discount to policyholders that go an unspecified time without filing a claim. Savings can be as high as 12% for eligible drivers. Ask your USAA agent for more information.

How Much You Save

As is the case with all auto insurance pricing, how much you save varies. The amount saved by the claims-free discount mainly depends on which insurer carries your policy. Another factor can be time. Some companies lower your rates each year you go without an incident. According to Progressive, policyholders with a clean driving history save an average of 31%. To find out what your provider offers, speak with an agent or representative.

Claims-Free Discount by Company

Insurance CompanyClaim-Free YearsMax Savings
Liberty Mutual3 to 5N/A
State Farm3 to 5N/A
Amica39 monthsN/A
USAAN/A12%
Note: table data found on the above insurers’ websites.

Frequently Asked Questions

How far back do insurers look at your driving record?

You can expect most insurance companies to look back on the last three to five years of your record. Some may consider up to seven years. If you had an accident or filed a claim within this period, chances are you won’t receive a discount.

Will my discount go away if I have a car accident?

If you get into a car crash and file an insured loss request, these savings will probably disappear. Each provider has different rules regarding this reward. However, if you have a fender-bender and pay out of pocket, you remain claims-free and eligible for this discount. At times, a minor loss notification, such as for roadside assistance, won’t result in losing your benefit. Be sure to ask before filing.

How many years do I need to go without filing a claim to qualify?

In general, you need to go at least three to five years without an incident before you qualify. Each insurer sets a different limit on this. For example, Progressive wants you to go three years without filing before you see a discount. On the flip side, GEICO doesn’t reward policyholders until after the fifth anniversary of their last claim.

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