Looking for an Auto Insurance Discount for No Claims

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Key takeaways...
  • A no claims discount is not the easiest discount for which to qualify, but it is possible with a good driving record
  • Claims that utilize your collision coverage, comprehensive coverage, or uninsured or uninsured motorist coverage, or even a claim using your personal injury protection (PIP) will make the discount unavailable to you
  • The biggest companies in auto insurance have their risk assessments down to a science, and they want to attract drivers who are likely to pay their premiums and then never make a claim
  • Another way to find a company that provides a no claims discount is to search online
  • Comparing quotes is certainly the only way to know for sure how much an insurance company will charge you, but there are a few steps to follow to improve your search and comparisons

Car insurance can be expensive, so any discount that lowers your premium is a welcome find. A no claims discount is not the easiest discount for which to qualify, but it is possible with a good driving record.

Search for car insurance quotes right here by inserting your ZIP code into the FREE quote tool above!

A no claims discount is one of many discounts for which you might qualify. Make sure that you look for the highest discount percentages overall, rather than just one single discount.

No Claims Discount Defined

A no claims discount is pretty much what it sounds like. It is a discount for those drivers who have not had a claim recorded on their driving record, which usually encompasses the last three years.

Generally, this really means no claims whatsoever. No-fault claims will void your opportunity to qualify for the discount, as a claim represents money paid out by the insurer even if the accident or loss wasn’t your fault.

Claims that utilize your collision coverage, comprehensive coverage, or uninsured or uninsured motorist coverage, or even a claim using your personal injury protection (PIP) will make the discount unavailable to you.

Discounts are meant to attract and reward good drivers who have a low risk of putting in a claim, according to the New York Department of Financial Services.

A no claim discount, sometimes referred to as a no claim bonus, is meant to attract the creme-de-la-creme of drivers from the viewpoint of the insurance company.

Such drivers haven’t had any kind of claim whatsoever in years, so they are much less likely to do so in the future.

Not all insurance companies use the term “no claims discount”; it is actually much more common across the ocean in England.

Similar discounts include safe driver discounts and mature driver discounts. Some insurance providers reward such drivers with other, valuable packages, such as a vanishing deductible.

Once you have the discount, you can still lose it. Just like a young driver will lose a good student discount if he or she has a “D” average one semester, a driver with a no claim discount will lose it as soon as that driver files a claim.

Major Insurance Providers

Probably one of the most likely sources for finding a no claims discount is with one of the major auto insurance providers.

These providers are more likely to have great rewards for low-risk drivers, as they can afford to be picky when it comes to which drivers are given the best rates and the highest discounts.

The biggest companies in auto insurance have their risk assessments down to a science, and they want to attract drivers who are likely to pay their premiums and then never make a claim.

That spells nothing but profit to car insurance providers. The largest providers can be traced using recent Market Share Data.

Such insurers do take on drivers with more risk who wouldn’t qualify for the no claims discount, though insurers usually charge much higher rates for those drivers without a perfect driving record.

However, every insurer calculates driver risk and premiums in different ways, so it’s not to say that you couldn’t find a great rate with a big auto insurer if your record has some accidents or speeding tickets.

Usually, you can recognize the biggest insurance providers by the frequency of their commercials. The largest companies advertise extensively.

You can find their ads in print in newspapers and magazines, on television and radio, and in digital format on the Internet.Advertising with such frequency allows the biggest companies to be the most well known.

When a driver is looking for coverage, those companies they know well will be the first ones that driver turns to. This, in turn, gets more customers, helping the company to stay one of the largest.

Smaller Providers

Small, local providers might also be another source to look at for a no claims discount. Every insurer loves a driver with low risk. Smaller providers might be able to offer you even lower rates in the hopes of attracting your business.

Small providers may also be able to offer you better customer service such as a dedicated agent, employees who know your name, and expert attention to detail.

On the other hand, smaller providers might not offer other insurance lines, such as homeowner’s insurance. They also may not transfer to another state if you plan to move.

It is up to you to decide which you think is better, big or small when it comes to car insurance providers.

You may appreciate your dollars staying within the local economy with a smaller insurer, or you may like the donations to worthy causes and the community service that is a cornerstone of the bigger insurers.

Online Searches

Another way to find a company that provides a no claims discount is to search online. Many different companies advertise the superiority of their discounts compared to competitors.

Searching out such companies will allow you to narrow the field for insurance companies that offer such a discount and companies that do not.

However, the only way to know for sure how much any insurance company will charge you is to get a quote for coverage.

Providers can advertise whatever messages they like, but it doesn’t mean such options are available for everyone.

If you want to know how much one company’s no claims discount will save you, then you need to get a quote for coverage to find out.

According to the Maine Bureau of Insurance, getting quotes and shopping around is the only way to know if one company’s rates are higher or lower than another’s.

Discount Amounts

Discount amounts will vary depending on the insurer, though there are some providers out there that boast of some really big savings from no claims discounts.

Some auto insurance providers claim that you can save up to 60 percent off your premium.

However, you must apply the rule of thumb that, “if it sounds too good to be true, then it probably is.” You will have to investigate such claims by getting a quote.

Also, keep in mind that a 50 percent quote off of a base premium of $3,000 isn’t the same as a 10 percent discount off a base premium of $1,500. Getting a quote is the only way to know for sure.

Generally, safe driver discounts amount to anywhere between 10 percent and 20 percent.

It depends upon your state law and your insurer whether those discounts are off of your liability coverage, your full coverage, or your entire premium. Some insurers increase their good driving discount after you take a safe driving course.

Getting and Keeping the Discount

To qualify for such a discount, you obviously have to have a clean driving record for the past three years or so. That’s also keeping in mind that really serious offenses such as DUIs and hit-and-runs will stay on your record for much longer.

In order to keep a clean driving record, you have to obey the rules and laws of the road.

Laws such as speeding limits are meant to keep drivers safe based on road conditions, and rules such as passing only on the left are set to help every driver to be on the same page while on the road. Both reduce accidents, injuries, and fatalities.

When you are driving, you must follow those rules and laws to minimize accidents and tickets. It’s really the only way to keep a clean record.

Also, abstaining from poor choices, such as distracted driving, tired driving, or even driving under the influence, will help you to keep yourself out of trouble.

These behaviors have to continue after you get such a discount, or you will lose it.

One claim, one accident, or even one ticket will usually nullify the no claims discount.

Tips on Comparing Quotes

Comparing quotes is certainly the only way to know for sure how much an insurance company will charge you, but there are a few steps to follow to improve your search and comparisons.

First, know how much coverage you want before you search. Then, you won’t get sidetracked by agents or warnings on websites. Then, you need to get every quote for exactly the same amount of insurance coverage.

If you get quotes for different levels of coverage, you won’t be able to compare them equally. The policy with more coverage should just naturally cost more. The only way around this is to get quotes for precisely the same amounts of coverage.

Then, utilize quote comparison websites such as this one. They will allow you to get many quotes for a little effort. You can compare all of your quotes in one fell swoop.

Lastly, make sure that you research the background and licensing of any insurance company you have never heard of before.

Unfortunately, there are many fraudulent companies out there, according to a consumer alert issued by the National Association of Insurance Commissioners. No discount is worth paying your insurance premium to a scam artist!

Start your search for safe driver discount car insurance by placing your ZIP code in the FREE quote tool below now! 

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