If you've maintained a clean driving record, you are likely eligible for some kind of reward for being a safe driver — though discounts vary by amount and by insurance company. Good drivers can save anywhere from 10% to 30% on their car insurance premiums. Show
How do good driver discounts work?Insurers take different approaches to rewarding safe drivers. We've broken down how these work below:
In addition, drivers can often earn a discount on their premium by taking a defensive driving course. While these courses are generally geared towards young drivers and drivers older than age 60, certain states make them eligible to all drivers. They typically take only a few hours and cover your state's driving laws and techniques to help avoid an accident. At the end, many courses give you a certificate that you can share with your insurer to receive this defensive driver discount. What is considered a clean driving record?For insurance purposes, a good driving record means your record is clean of any incidents during the past three to five years. The meaning of "safe driving" varies somewhat from insurer to insurer. Some of the incidents that insurance companies take into account include: Insurers base rates on how likely you are to make a claim. If you have an incident on your record, that indicates that you have not always been a safe driver and are more likely to need your insurer to pay out a claim at some point. By contrast, a clean record suggests that you generally drive safely and aren't as likely to need your insurer to pay out a claim. This lower risk allows insurers to offer you lower premiums — and if you maintain a good driving record long enough, some insurers will offer you a discount. Which insurance companies offer discounts to good drivers?The following major insurance companies offer some form of a reward to safe drivers:
Show All Rows *Discount availability varies by state. Contact an insurance agent to confirm availability in your area. Discount for good drivers in CaliforniaIn California, drivers who meet the state's definition of a good driver are legally entitled to a 20% discount. To meet the state's criteria and receive a discount, California drivers must:
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 discount and maintain your discountThere are a few consistent habits that make someone a good driver. To be a good driver — and to maintain your auto insurance discounts – practice the following safe habits: Drive less frequentlyIt sounds obvious, but it's worth repeating: If your car isn't on the road, you can't get into an accident, receive a ticket or drive under the influence. In fact, some insurers reward you for staying off the road with low-mileage discounts. Look into accident forgiveness coverageEven if you're a safe driver, accidents can happen to anyone. Accident forgiveness coverage means that your insurer will not impose a rate increase after you're involved in an accident. Some insurers allow you to purchase this coverage, while others offer it for free if you've renewed your policy and stayed accident-free for several years. Reduce distractionsTexting, changing the song or double-checking directions — all of these things take 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 the brakes and the acceleratorSlamming on the brakes and the accelerator is not only bad for your car, but it's bad 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. Which of the following would be considered the most important factor in determining the rates and premium for an applicant for an auto policy?Driving Record. Your driving record is crucial in determining your premium and your insurability. Most companies charge substantially more to insure drivers with a history of traffic violation convictions or chargeable accidents than those who have relatively clean records.
Which of the following would not be covered under the liability section of a personal auto policy?Under the liability portion of your policy, coverage is generally excluded in the following situations: Damage or injury is intentional. There is duplicate coverage (e.g., claims covered by workers' compensation)
Which of the following terms best describe a trembling or shaking of the earth?An earthquake (also known as a quake, tremor or temblor) is the shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves.
When a replacement auto is acquired during the policy period What coverage will apply?If you buy a vehicle that you intend to replace the one specified in the declarations of your Personal Auto policy with, the newly acquired automobile automatically receives the fullest possible coverage under the PAP, without you having to notify the insurance company.
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