Save money on your car insurance with a claim-free discount.
Over the years you’ve obeyed the speed limit, heeded traffic signals and stop signs, and have avoided auto accidents of any kind. In other words, you’ve been a claim-free driver. In the insurance industry, this clean driving record renders you an ideal customer. Is your insurance company rewarding you for your safety behind the wheel with a claim-free discount? If you qualify for this type of credit, you could enjoy significant savings on your auto insurance over the years. Let’s take a closer look at how claims affect your auto insurance premium, how to qualify for a claim-free discount, and how much this credit could save you.
How to Qualify for a Claim-free Discount
Although discounts vary from one insurance company to another, when determining eligibility for a claim-free discount, insurance companies typically examine claims history for at least the past three to five years. It’s important to note that:
- Insurance companies review the number of auto insurance claims and severity over a given period of time. Several small claims can indicate a pattern that may cause your company to drop your policy.
- Your company may also view property damage and bodily injury differently, treating the latter more severely.
Understanding Auto Claims
There are several different ways that claims covered by your car insurance policy can occur. The two categories into which car insurance claims fall are at-fault auto claims and not-at-fault auto claims, and the line between the two is not always crystal clear. Review the following scenarios to help you better understand auto insurance claims:
You fail to stop at a stop sign, causing an accident. In this case, you are likely at fault and your record will be charged with the accident. Any claim will be paid by your auto insurance company.- You are sitting in your parked car and are hit by a passing vehicle. In this situation, you are likely not at fault. If the other driver lacks coverage, your auto insurance policy will typically protect you with the uninsured motorist coverage it provides.
- While driving, a car suddenly swerves into your lane, and you instinctively swerve to avoid it but end up hitting another car and the car that swerved into your path. In this case, both you and the driver who originally swerved in front of you may be deemed responsible for the accident.
- You are involved in an auto accident while driving someone else’s car. If you are determined to be at-fault for the accident, the claim will be charged against your record, not the vehicle owner’s.
How to Reduce Your Risk of an Auto Accident
To qualify for the claim-free discount, your driving record must remain accident-free. Use the following time-proven ways to help you avoid car accidents and claims:
- Pay attention to your speed, considering that as your speed increases, so does your break time. In other words, if you double your speed, your brake time quadruples. If road and weather conditions are unfavorable, adjust your speed accordingly, driving slower than the posted speed limit if necessary.
- Be aware of your surroundings. Before changing lines, check your side and rearview mirrors to make sure there isn’t another car in your “blind” spot.
- Take a defensive driving course. Completing an approved defensive driving class will not only teach you good habits behind the wheel, but it also may render you eligible for a safe driver discount on your auto insurance policy.
- Avoid driving when drowsy, and if you’re taking medications, be sure to check for any possible side effects that could inhibit your driving ability.
- Keep the inside of your car free of distractions. Ensure that all passengers, especially children, remained buckled at all times, and refrain from cell phone use. Never text while driving, as it has shown to increase your risk of an auto accident and has even been banned in 39 states, including New Hampshire.
How Much is a Claim-free Driver Discount Worth?
Although discounts vary from one insurance company to another, the claim-free driver discount can score you savings of up to 20 percent on your auto insurance. If you maintain a clean driving record and qualify for this discount for a number of consecutive years, it’s easy to imagine the significant savings that will add up. Remember: even if you aren’t eligible for a full discount, you may qualify for a partial discount depending on your driving record.
Insurance Discount Help is Here
Obeying the rules of the road and being attentive behind the wheel can not only help you remain safe while driving, but it can also help you save money. Safe driving can have a significant, long-term impact on your auto insurance premiums, and as a result, on your wallet.
At Knapton, Reade & Woods, our job as independent insurance agents is to find you the best coverage at the most competitive rates, ensuring that you receive all of the discounts for which you are eligible. Call us today at 603-464-3422 to find out whether you qualify for a claim-free driver discount and perhaps other savings that accompany your status as a safe driver, or click here to submit our online quote form to get a free auto insurance quote.
