Insurance is all about accepting risk. The higher the risk to be carried by the insurance company, the higher the premium will be. A claim-free group is a term used in car insurance when establishing the risk rating group into which an insurance applicant will fall, based on his previous claims record. Insurance companies use risk rating groups as one of the factors when calculating a specific individual’s premium. Claim-free group rating is mostly used for comprehensive car insurance premiums.

When a car insurance client has been comprehensively insured without making any claims for three consecutive years, he would be placed in the claim-free risk rating group. The claim-free rating will allow the insured party to qualify for a reduction in his monthly car insurance premium. The reduction in premium is usually calculated as a percentage discount allowed.

When you fall into a claim-free group you will also qualify for a no-claim bonus. Make sure that your car insurance policy offers this benefit. Protecting your claim-free status and your no-claim bonus can save you a lot of money in car insurance. Protect it by taking all the necessary safety precautions and don’t make small claims that will affect your no-claim record.