Common Insurance Discounts for Good Drivers

Most car insurance carriers offer a good driver discount (also known as a safe driver discount) for drivers who have a clean driving record. In certain states such as Massachusetts, good driver discounts have even been mandated into state law under the Safe Driver Insurance Plan. In essence, a good driver discount means that your insurance premium cost is discounted a certain percentage because of your history of being a low-risk driver.

Good driver discounts vary from insurance company to insurance company. Some insurance carriers will reduce your insurance premium by 2% for every year that you avoid an at-fault collision. This discount can have a given limit; for example, the discount may top out at 30% of the premium.

Other insurance carriers may define good driving a little differently. A given insurance provider may require safe driving over a three-, four- or even five-year term before any discount is applied. Some insurance providers may have two tiers of good driving, with a lower tier discount provided for those clients with no at-fault accidents and a higher tier discount provided for those clients with no accidents whatsoever and no speeding and moving violation tickets.

If you have a DUI/DWI charge, this will not always disqualify you from receiving a good driver discount; however, you will need to prove that you've had an exemplary driving record since your conviction. In most cases, this exemplary driving record will need to go back at least 10 years. Of course, qualifications for this particular good driver discount will vary from insurance company to insurance company.

Are there ways in which you can increase your chances of obtaining a good driver discount? Yes. To begin with, you can take a defensive driving course to better prepare you for possible traffic issues. Defensive driving courses are offered privately or through the DMV. Once you have successfully completed a defensive driving course, be sure to notify your car insurance company; some insurance providers give a percentage discount on the insurance premium based on course completion.

Other ways in which you can eventually obtain a good driver discount are to observe the speed limit, especially when there is heavy traffic or bad weather, to maintain a safe distance between you and the vehicle ahead of you (typically by allowing a three-second lag time between you and the vehicle in front) and to be extra cautious when entering or leaving parking lots. In addition, you should avoid so-called "aggressive driving" (e.g., passing other drivers, weaving through traffic), since aggressive driving often leads to traffic tickets and collisions.