Glossary

Claims-free discount

A premium credit for homeowners with no paid claims over a set number of recent years, verified from the insurer's records and claims history reports.

Also called: claim-free discount, no-claims discount, loss-free discount

A claims-free discount rewards homeowners who have not had a paid claim for a set period, often three to five years, though the look-back varies by insurer. The insurer checks its own records and your CLUE report. Some companies apply a flat percentage, some grow the credit the longer you stay claims-free, and some fold it into a loyalty tier. The details sit in the rating plan the insurer filed with your state.

It is usually applied automatically at quote or renewal. Say a company gives 10% off after five claim-free years and your premium is $2,000 (hypothetical): the credit is worth $200 a year. A single claim can remove the discount and add a surcharge, and the effect may last several years, so a small claim can cost more over time than it pays. Run the numbers in the Should I file a homeowners claim? before you file one.

Ask how far back the insurer looks, whether it counts claims that paid nothing or were not your fault, and whether claims on the property before you owned it affect you. Property-level history can show up on a CLUE report even if the claim was filed by a prior owner. Dispute errors in writing. See the claims-free discounts guide and the loss history entry.

Last reviewed October 10, 2026

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Related terms

CLUE report A LexisNexis report of the auto and property claims tied to a person and an address over roughly seven years, which insurers pull when underwriting. Loss history The record of insurance claims tied to you and to your property over the past several years, which underwriters use to judge risk and set price. Surcharge An extra amount added to a premium because of a specific risk factor, claim history or state-required assessment, usually shown apart from the base rate. Multi-policy discount A premium reduction for buying your home policy and another policy, usually auto, from the same insurer or insurance group. Rate increase A rise in the price an insurer charges per unit of coverage, which is only one of several reasons the premium on your renewal notice can go up. Underwriting How an insurer evaluates a home and its owner, decides whether to offer coverage and on what terms, and sets the price.

Related guides

Claims-free discounts and when to skip a small claim How claims-free discounts are earned and lost, what a claim leaves on your CLUE record, and a way to weigh a small payout against the long-term cost. CLUE reports: how claims history follows you and your house A CLUE report holds up to seven years of claims tied to you and your address. What it shows, how insurers use it, how to get your free copy and dispute errors. Homeowners insurance discounts to ask about Which homeowners insurance discounts exist, what each rewards, where state law requires them and how to get every one you qualify for credited on your policy. Should you file a homeowners claim? How to decide whether a loss is worth a claim: payout after deductible, effects on premium and renewal, and losses you should always report. Should you raise your deductible to lower your premium? Raising your deductible pays when the saving is large for the added risk and you could cover the gap in cash. How to run the break-even and where to stop. Will a claim raise your homeowners premium? Often, but not always. What decides whether a claim moves your rate or your renewal, which claims some states shield, and how to ask before you file.

Related tools

Home and auto bundle savings calculator Check a home and auto bundle discount against the same company's separate prices and against the best separate quotes you can find elsewhere. Homeowners deductible break-even calculator Compare two all-perils deductibles: the yearly premium saved, the extra cost per claim, and the number of claim-free years before the higher one pays off. Should I file a homeowners claim? Compare what a claim would pay with the premium increase it might cause, and see when paying a repair yourself costs less than filing.