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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Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

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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.

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

In the United Kingdom, car insurance 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

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 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 or claims calculator 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, the table below outlines the average rates you might pay after specific violations.  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. As you can see from the second table, rates for drivers with no accidents are significantly lower than those with violations.

Average Rates by Violation

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Accident/Violation Avg. Monthly Premium Avg. Annual Premium
Speeding 16 - 20 MPH over limit $183 $2,190
At-fault accident - greater than $2000 $217 $2,605
Reckless driving $266 $3,187
Racing $274 $3,291
DUI $287 $3,441

Source: The Zebra

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Average Rates for Accident-Free Drivers

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Company Avg. Monthly Premium
USAA $106
State Farm $117
GEICO $142
Progressive $147
Nationwide $149
Farmers $177
Allstate $211
Liberty Mutual $215

Source: The Zebra

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!

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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.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.