All About the Claims-Free Discount

Claims-free discounts are available to drivers who have never made an auto insurance claim. Some insurance companies offer up to 20 percent off with a claims-free auto insurance discount, but claims-free discounts will vary by state and provider. Do you have any claims on your insurance record? If so, chin up. You can still qualify for cheap auto insurance rates. Enter your ZIP code below to start comparing auto insurance quotes and find affordable coverage that fits your budget, even without a claims-free car insurance discount.

Free Auto Insurance Comparison

secured lock Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Full Bio →

Written by Rachel Bodine
Insurance Feature Writer Rachel Bodine

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 6, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

One of the best ways to save money on car insurance is to avoid ever making a claim. Car insurance companies love customers who make no claims. That’s why car insurance companies reward these customers with lower insurance premiums in the form of a claims-free discount.

How does a claims-free discount work? Do you qualify for a claims-free discount? How long do you have to go without a claim to qualify for a claims-free discount? Today, we’re explaining everything you need to know about the claims-free discount.

What is the Claims-Free Discount?

If you’re a car insurance policyholder who has never made a claim, then you’re the best customer for the insurance company. You’ve delivered pure profit to the company, paying your premiums monthly without ever forcing the insurance company to pay for car repairs, car replacements, broken windshields, or other expenses.

That’s why some car insurance companies provide a discount for claims-free customers. You pay lower rates for car insurance as a reward for driving safely without making a claim.

Compare over 200 auto insurance companies at once!

secured lock Secured with SHA-256 Encryption

How Does a Claims-Free Discount Work?

Claims-free discounts vary between car insurance companies and states. Some car insurance companies offer claims-free discounts in some states but not others.

Esurance, for example, offers a claims-free discount in Arizona, Georgia, Illinois, Maryland, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington, but no other states. The discount gives drivers up to 20% off car insurance premiums if they have not made a claim within the last five years. It’s one of the most substantial discounts offered by the company.

Other car insurance companies offer similar types of claims-free discounts. Generally, claims-free discounts require you to have no claims within the last 5 years. Some companies, however, offer a claims-free discount in as little as 3 years. Others require you to have 7 years of clean driving.

Some companies give you a claims-free discount that increases every year you go without making a claim. You might get 5% off after going one year without making a claim, for example, with an additional 5% discount every year after, up to a maximum of 4 years or a 20% discount.

If you have no claims in the last 5 to 7 years with any car insurance company, then you may qualify for a discount of 10% to 30%, depending on your car insurance company.

What Counts as a ‘Claim’?

What exactly does it mean to be ‘claims-free’? Rules vary between car insurance companies.

In some states, comprehensive claims under $1,000, glass-only claims, and emergency road service claims won’t disqualify you from the claims-free discount, for example. Some states actually forbid insurance companies from taking away a driver’s claims-free discount for these claims.

Similarly, you may be able to maintain your claims-free discount after an accident where you were not at-fault. In this situation, the other driver’s car insurance would pay – not yours, which means you didn’t cost your car insurance company money.

In other states and with other insurance companies, your claims-free discount could be removed for any claim, regardless of the amount or type.

Generally, however, you’ll qualify for a claims-free discount if you meet the following requirements:

  • All drivers on your car insurance policy have gone at least 60 months (5 years) without an at-fault accident claim, a DUI/DWI conviction, or a similar major claim
  • At least one person on your policy has 5-plus years of driving experience
  • You have at least five years of continuous insured driving history

How to Get a Claims-Free Discount

Most car insurance companies will automatically apply the claims-free discount to your account once you meet the above requirements.

If you believe you meet the above requirements but have not qualified for a claims-free discount, then contact your car insurance company. Some customers might slip through the cracks. Or, some car insurance companies only apply the claims-free discount if customers specifically request it.

Remember: not all insurance companies offer claims-free discounts in all states. Some car insurance companies avoid offering claims-free discounts to drivers in certain states due to state insurance laws.

Compare over 200 auto insurance companies at once!

secured lock Secured with SHA-256 Encryption


Have you gone at least five years (60 months) without making a claim on your car insurance policy? If nobody listed on your car insurance policy has made a claim within the last five years, then you may qualify for a claims-free discount.

Typically, a claims-free discount gives you 15% to 30% off car insurance premiums until you get into an accident. With most car insurance companies, claims-free discounts are among the biggest discounts available.

Car insurance companies have different claims-free discount policies. Additionally, some car insurance companies offer claims-free discounts in some states but not others. Talk to your car insurance company to determine if you qualify for a claims-free discount.

Free Auto Insurance Comparison

Compare over 200 auto insurance companies at once!

secured lock Secured with SHA-256 Encryption