How to Get a Good Driver Discount on Car Insurance
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If you've maintained a clean driving record, you're likely eligible for some kind of reward for being a safe driver. Discounts vary by insurance company, but in general, drivers with good records can save anywhere from 10% to 30% on car insurance premiums.
How do good driver discounts work?
Insurance companies take different approaches to rewarding safe drivers. How these work is broken down below:
- Accident-free discount: Many major companies offer discounts to drivers who have had no accidents in the past three to five years.
- Violation-free discount: If you've avoided any traffic violations in the past three to five years, you're likely eligible for a discount.
- Safe driver discount: Some insurance companies combine the accident-free and violation-free rewards, offering a single safe-driving discount to drivers who have avoided incidents and accidents within the past three to five years.
- Usage-based insurance: Also known as telematics insurance, usage-based insurance monitors your driving — usually via mobile app or a device installed in your car — and offers you discounts based on your performance. Most major companies offer some type of usage-based insurance.
- Lowered premiums: Instead of offering you a specific discount on your premiums, some companies lower your rates if you've managed to avoid an accident for a specified period of time.
In addition, drivers can often earn a discount by taking a defensive driving course. While these courses are generally geared toward young drivers and drivers over 50, certain states make them eligible to all drivers. They typically take only a few hours and cover your state's driving laws, plus techniques to help you avoid an accident. At the end, you'll get a certificate that you can share with your insurance company to receive this defensive driver discount.
What constitutes a clean driving record?
For insurance purposes, a clean driving record is one that is free of any accidents, speeding tickets or other violations within a time period (typically three to five years) set by your insurance company. The exact definition of a "clean record" varies somewhat by company. Some of the incidents that insurance companies take into account include:
- At-fault accidents
- Traffic violations, such as speeding, reckless driving or failing to follow a signal
- Driving under the influence (DUI)
Companies base rates on how likely you are to make a claim. An incident on your record indicates you haven't always been a safe driver and the insurance company is likely to need to pay out a claim at some point.
By contrast, a clean record suggests you are a safe driver and unlikely to file a claim. This lower risk allows most companies to offer you lower premiums — and if you maintain a good driving record long enough, a discount as well.
Which insurance companies offer discounts to good drivers?
The following major insurance companies offer some form of reward to safe drivers:
Company | Discount | How it works |
|---|---|---|
| Allstate | Safe Driving Bonus | Good drivers receive a bonus for every six months they remain accident free. You can elect to have a credit applied to your car insurance policy, have the bonus deposited in your bank account or have a check mailed to you |
| Drivewise | Telematics program that allows you to earn up to 40% off your premium | |
| American Family Insurance | Good Driving discount | Avoid accidents, violations and claims for five years to receive a discount |
| KnowYourDrive | Telematics program that allows you to earn up to 20% off your premium | |
| Farmers | Safe driver | Discount applied for any driver who has avoided certain kinds of points on their record |
*Discount availability varies by state. Contact an insurance agent to confirm availability in your area.
Discount for good drivers in California
In California, drivers who meet the state's definition of a good driver are legally entitled to a 20% discount. To meet the criteria, California drivers must have:
- Continuously held a license for a minimum of three years
- One or fewer points on their driving record
- Not been to traffic school more than once
- No at-fault accident that resulted in death or injury
- No DUI-related convictions for the past 10 years
If that describes you, your insurance company is obligated to offer you a discount in California. Good drivers should reach out to their insurance company to ask about this discount — and be sure to shop around for the best cheap insurance in California as well.
How to be a good driver and maintain your discount
There are a few consistent habits that make someone a good driver. To drive safely — and maintain your auto insurance discounts — practice the following habits.
Drive less frequently
It sounds obvious, but it's worth repeating: If your car isn't on the road, you can't get into an accident or receive a ticket. In fact, some insurance companies reward you for staying off the road by offering low-mileage discounts.
Look into accident forgiveness coverage
Even if you're a safe driver, accidents can happen to anyone. Accident forgiveness coverage means your insurance company will not increase your rate if you're involved in an accident. Some companies allow you to buy this coverage, while others offer it for free if you've renewed your policy and stayed accident free for several years.
Reduce distractions
Texting, changing the song or double-checking directions takes only a split second, but that split second can mean the difference between avoiding an accident or getting into one. Plan your route and your playlists ahead of time, and wait until you're parked to respond to any texts or calls.
Avoid slamming on the brakes and the accelerator
Slamming on the brakes or the accelerator is bad not only for your car, but also for your own safety and the safety of those around you on the road. By giving yourself more time to accelerate and decelerate, you're less likely to collide with another driver.
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