How To Get a Good Driver Discount on Your Car Insurance

The average monthly cost of full-coverage auto insurance in the United States is $193 according to Insurify data.

Some things can make your costs a lot higher, though, like a car accident or a violation. The average cost of auto coverage if you have an incident on your record goes up to $226 while the monthly cost after an accident averages $252.

Insurers decide how much to charge based on how likely it is that you'll get into a crash. Unfortunately, if you have a past problem, statistics suggest you're much more likely to have another one. On the flip side, though, insurers reward good drivers because there's a reduced chance of them making a claim.

In fact, even though I've never really thought of myself as a particularly great driver (I'm nervous behind the wheel!), I qualify for a good driver discount.

So, how do I qualify for this discount, and how can you do the same? Here's what you need to know.

Key takeaways

Insurance companies reward drivers who are safe behind the wheel.
You can earn a good driver discount by allowing your insurer to monitor your driving behavior using an app or plug-in device.
You can also earn a good driving discount by being free of accidents and moving violations or by taking a defensive driving course.

Telematics programs

One of the best ways to earn a good driver discount is to show insurers first-hand how safe of a driver you are. You can do this by downloading a telematics program that monitors specific driving behaviors and rewards you with savings.

Some examples include:

Allstate Drivewise: When you download Drivewise, your price will update every 12 months (or every six months for the first renewal) based on your driving behaviors. You'll also get personalized feedback on how to improve your driving.
GEICO DriveEasy: DriveEasy rewards you with premium savings for exhibiting safe driving behaviors. The Intelligent DriveEasy dashboard also allows you to monitor your progress.
AAA Drive: AAA provides you with a 5% discount just for enrolling, and you can save up to 25% at policy renewal if you earn a high enough score showing you are a safe driver.
Nationwide SmartRide: You can save up to 40% with this program. You get an instant discount as soon as you sign up, and as you show you're a safe driver, your discount grows. Nationwide said the majority of drivers earn the discount within 80 days of signing up.
Progressive Snapshot: Progressive says drivers save $322 per year on average with Snapshot. You can opt to use the app or choose a plug-in device in your vehicle instead. You can also monitor your progress in the app.

While there is variation in exactly how these programs work, they typically monitor things like:

Miles driven
How quickly you accelerate
How often you drive at night
Hard braking
How fast you go around corners
How often you use your phone while driving

All of these factors are important to insurers because they impact how likely it is that you will become involved in a crash. If you show you don't drive much or that you drive safely, the savings can be significant.

Accident-free discount

Accident-free discounts provide you with the opportunity to save on auto insurance if you go a certain length of time without becoming involved in a collision. Some examples of accident-free discounts include:

SteerClear: SteerClear is an accident-free discount from State Farm geared specifically toward young people. You can qualify for it if you are under the age of 25 and have gone three years with no accidents or moving violations.
Clean Driving Record: GEICO offers the opportunity to save as much as 22% on auto insurance if you are accident-free for a full year.
Accident-Free: Amica provides a discount if you have gone three years without becoming involved in an auto accident.
Claims-Free Discount: Liberty Mutual focuses its discount not just on being free of accidents but on making no claims at all on your policy.
Accident-Free discount: SafeCo gives you a discount after three accident-free years and an additional opportunity to save even more if you go five years without a collision.

The accident-free discount is how I qualified for my safe driving savings with my insurer.

Violation-free discount

Many insurers combine violation-free discounts with accident-free discounts. This means instead of two separate ways to save, there's just one opportunity to reduce your premiums based on a safe driver discount.

Other insurers, however, offer separate opportunities to save if you have no black marks on your driving record and if you have no accidents.

For example, Liberty Mutual specifically offers a violation-free discount, as does SafeCo.

Violations that affect your rates typically include:

DUI/DWI
Reckless driving
Hit and run
Speeding
Texting and driving
Running a red light
Failing to stop at a stop sign
Failure to yield

Essentially, any moving violation counts against you. Violations that occur out of state will also count, causing you to both lose the discount and likely pay higher insurance premiums due to the added risk of insuring someone who has shown they do unsafe things behind the wheel.

Parking tickets, however, typically don't affect your coverage since they aren't a moving violation and don't affect the likelihood you'll be involved in a crash.

Defensive driver discount

Insurers also reward drivers who take courses that teach them how to be safer behind the wheel. Specifically, taking a qualifying defensive driving course can reduce your premiums.

Insurers typically have a list of approved courses that qualify. For example, GEICO has a tool you can use online to find defensive driving courses in your area that will count toward earning you a premium reduction. These courses generally teach you how to adopt behaviors that reduce your crash risk, such as:

Learning how to respect others on the road
Maintaining a safe distance between cars
Taking steps to limit the force of impact

FAQs

What does a good driver discount mean?

A good driver discount refers to savings on auto insurance because of your clean driving record or your responsible driving behavior. You could qualify for a good driver discount by having a certain number of years with no accidents or violations or by using a telematics program to show your insurer you're a safe driver.

How do you lose the good driver discount?

You could lose your good driver discount by getting into an accident, getting a moving violation, or revealing unsafe behavior while using an insurance company's telematics program. It depends on what kind of good driver discount you qualify for.

What GPA is required to get a good driver discount?

A good driver discount is for drivers who show they are safe behind the wheel either by having no accidents or moving violations, by using a telematics program, or by completing a defensive driving class.

A good student discount is different. A good student discount is available to young drivers based on grades, and they'll usually need a 3.00 GPA to qualify, although you can check with your insurer to be sure.

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Bottom line

Qualifying for these auto insurance discounts can help you save a lot of money on your auto insurance. You should consider downloading a telematics program or taking a defensive driving course in order to lower your costs. Of course, avoiding accidents and moving violations is important too.

It's also worth noting that while most insurers offer these discounts, not every insurer does. If your insurance company does not allow you to save by being a safe driver, you may want to switch car insurance to find one that does.

You can shop around among insurers to find one that charges the lowest premiums after taking discounts into account so you can ensure you get the very best price possible.

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