What is a Good Driver Discount
Good Driver discounts are awarded to car insurance customers that maintain certain standards with their driving and vehicle care. Basically you save money for being a safe driver. Read below to learn how you can receive a good driver discount, the benefits of being a good driver, why car insurance companies will discount you for driving safely and how to increase your chances of receiving a good driver discount.
What is the Good Driver Discount?
A Good Driver Discount is a price break that a driver receives on their car insurance for (surprise!) being a good driver. Good Driver discounts are one of the most popular specialty discounts that insurers offer and depending on your auto insurance provider the terms for your good driver discount may change. Some insurers offer a more rewarding good driver discount, it just depends on which company you sign up with.
What factors qualify me as a good driver?
Common variables for determining whether you qualify for a good driver discount include your age, experience, driving record and more. Some car insurance companies have a sliding scale that determines how much of a good driver you are and your discount adjusts accordingly. Other companies have a set good driver discount that stays the same once you qualify for it. Both the qualifications for and the amount of discount offered from a good driver discount will vary from one auto insurance company to the next.
When you apply for car insurance, or your driving situation changes, such as changing vehicles or getting in an accident or racking up speeding tickets auto insurance companies may raise or lower your premium, or monthly payment accordingly. Car Insurance companies rely on complicated algorithms that take into account not only your driving history and current vehicle but also things like age and driving experience. A good driver discount is basically an extension of this process. When you go a certain period of time without a car accident or speeding violation you save the company money because they do not have to pay out any money on claims. The car insurance company in turn discounts your coverage as an incentive to keep you as a customer and also to incentivize good driving practices.
The Preferred Risk Driver
When your auto insurance company determines if you are to receive a good driver discount they have their own lingo for what constitutes a good driver. In the industry “good drivers” are known as preferred risk drivers. Car insurance companies determine whether or not you are a preferred risk driver using a number of common metrics. Each company may have slight differences but these metrics are basically industry standards. While these standards are not always fair (and they don’t necessarily describe you as a driver) the industry chooses to use this information to maximize profitability by weeding out bad drivers who could end up costing the insurance company a great deal of money.
What if I have a speeding ticket?
Most car insurance companies will probably not give you a good driver discount if you have a great deal of moving violations like speeding tickets, illegal u-turns etc. This may vary from company to company but generally if you have more than 1 to 3 recent (within the past 3-7 years) moving violations you will probably be ineligible for a good driver discount.
Do you need to be an experienced driver to qualify for the good driver discount?
Car insurance companies rate younger, more inexperienced drivers higher risk so if you are new to driving or under the age of 25 you most likely will never qualify for a good driver discount. Also if you have any sort of serious vehicle related crime like a hit and run or a DUI it is pretty much impossible to receive a good driver discount. Generally your conduct and experience has a great deal of bearing on the whether or not you receive a discount but there are also things you can do to try and become more eligible for a good driver discount.
How can I improve my risk status with car insurance companies?
In order to become a more attractive candidate for a good driver discount there are a couple of things you can do. First and foremost, stop making moving violations. No more speeding, running stop signs and traffic lights, illegal u-turns…getting ticketed for any moving violation can kill your chances of getting a discount. Not to mention these actions are unsafe as well. Many car insurance companies also look at your credit score. If your FICA credit score is higher than average for the area in which you live they may take that into account when deciding whether or not to discount your policy. Some, but not all auto insurance companies will offer you a discount on your auto insurance if you enroll in an advanced drivers education or defensive driving course. Being a better driver means less claims for them and more money in your pocket so these classes are often worth the cost.
In order to get a break on your car insurance and qualify for a good driver discount you must have a clean record first and foremost. Everything else helps, but it is absolutely essential to do your very best to avoid any sort of car accident or moving violation. Not only will these actions result in you being disqualified for a good driver discount they may even raise your insurance.