No-Claims Bonus Car Insurance

What is the no-claims bonus for car insurance, and how can you earn lower rates through safe driving?

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What is the no-claims bonus for car insurance?

A no-claims bonus is a reduction in your car insurance premium because you have not filed a claim. The no-claims car insurance bonus is more common in the UK, but American insurance companies offer similar discounts. Although details and terms vary from insurance company to company, we've listed some common no-claims bonus information below.

Understanding the no-claims bonus
  1. What is a no-claims bonus?
  2. How to keep a no-claims discount
  3. Car insurance with no claims: summary

How to get cheap car insurance with a no-claims bonus

In the United Kingdom, car insurance is runs on a tiered system, offering increased discounts the longer you have driven accident-free. In the US, this direct relationship between no-claim status and discounted rates doesn't exist.

Most no-claims policy options in the US center on a “good driver” discount or rewards program. Most auto insurance companies will factor in a good driving discount when you’re quoted for a policy. You can usually see the rate reduction listed in the “discounts” portion of your policy documentation. Outlined below are other company-specific options.


In addition to its safe driving discount, Allstate offers an additional “Safe Driving Bonus” program, available for an additional premium. This program pays out each policy period — six months — in which you haven’t had an accident. Participation in Allstate's Safe Driving Bonus program includes eligibility for a lowered collision deductible for each year of safe driving. You can also save as a safe driver by utilizing Allstate Drivewise. This telematics-based program can save you between 10 and 20% on your premium.

State Farm

State Farm has two safe driver discount options: a good driver discount and an accident-free discount. The former is geared toward new State Farm customers who have gone three or more years without a violation or at-fault accident. To take advantage of State Farm's accident-free discount, you must have been an existing State Farm customer for at least three accident-free years. Another option is State Farm's telematics program..


Progressive offers two ways to save as a good driver. Progressive's telematics program, called Snapshot, offers up to $130 in annual savings. Like many other companies, Progressive offers a safe driver discount, with advertised savings of up to 31%.


GEICO offers some standard good driving discounts. Its most lucrative discount is the “Five-Year Accident-Free Good Driver” program, rewarding customers with an average of 26% annual savings for keeping a clean driving record.


If you drive accident-free for five years, you can claim a 10% good driving discount from Nationwide . Another way to save with Nationwide is its SmartRide telematics program. Nationwide claims average savings of up to 40% for safe drivers enrolled in the program.


Esurance offers a couple of ways to save if you’re a claims-free driver. First, Esurance offers the aptly named “Claim-Free Discount” on policies with drivers with five years without a claim or or DUI/DWI conviction. In order to qualify, one individual on the policy must have at least five years of driving experience and insurance history. Esurance's telematics program is called DriveSense.

How to keep a no-claims bonus

Although this may seem straightforward, it can get complicated. If you’re faced with a situation in which you’re unsure whether to file a claim, follow our guidelines.

  1. Get an estimate for the repairs at a local repair shop
  2. Use our State of Insurance analysis to see how much an at-fault accident would raise your rates. Keep in mind that an accident stays on your insurance record for three years, so you'd need to consider this rate increase over a three-year period.
  3. Compare the out-of-pocket repairs to the premium increase and your deductible. If it is cheaper to pay for the damage yourself, do that.

While the amount you’ll pay after an accident will depend on a number of variables, we generated an average amount you can expect to pay below. If you’re worried about the premium increase you’ll receive after filing a claim as well as losing your no-claims bonus, use the data below to help steer you in the right direction.

Car insurance premium increase after an at-fault accident

No accidents Increase over 6 months Increase over 12 months Increase over 3 Years
$714 +$343 +$688 +$2,604

Car insurance with no claims: summary

Your driving history is one of the primary rating factors used to create your premium. Every insurance company will reward a history of accident- and violation-free driving with lower rates. You shouldn’t rely solely on a no-claims bonus as a deciding factor in choosing a car insurance company. Instead, shop as many options as possible to find the best overall rate. Enter your zip code below to see how much your good driving history can save you on claims-free auto insurance!

Compare rates today!

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Ava LynchSenior Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one of The Zebra's property and casualty insurance experts.

Ava’s insurance career began as an agent with Farmers Insurance. Over the years, she has become an authority in all things property and casualty insurance, helping her to write informative guides for shoppers.

Ava’s work has been cited in publications such as InvestopediaThe BalanceMoney.comLiberty Mutual, U.S. News & World Report, GasBuddy, Car and Driver and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.