Claimfree

Claimfree is a term used to describe an insurance policyholder who has not filed any claims during a policy period. In many markets, the concept is referred to as a no-claims discount (NCD) or no-claims bonus, and some insurers label it a claim-free discount. The term is most common in auto and home insurance.

How it works: Eligibility depends on staying claim-free for a specified period, typically several years. If a claim is filed, the policyholder may lose some or all of the discount for one or more years. Some policies offer claim-free protections by paying an additional premium to keep the discount after a small claim. The size of the discount and the length of the period vary by insurer and jurisdiction.

Regional variations: In the United Kingdom, the no-claims discount is a central feature of motor insurance, with larger discounts for longer claim-free periods. In the United States, discounts for claim-free or safe driving are common but not standardized; many insurers rely on driving records and claims history. In other regions, policy terms can differ.

Limitations: A claim-free status reduces premiums but does not guarantee lower costs over time; it also may not transfer between insurers. Some policies may exclude certain perils from claim eligibility, and “claim-free” status might not apply if a claim is made for third-party liability. Additionally, filing a claim may influence future rates beyond the discount, depending on the insurer's rating system.

See also: No-claims bonus, no-claims discount, premium discounts, claims history.