Best Auto Insurance Discounts For Safe Drivers

Many insurance companies offer discounts if you’re considered a good driver. This includes avoiding accidents and traffic convictions, having a clean driving record.

Other discount opportunities include completing a driver training course and paying for your policy upfront instead of monthly. Demographic discounts, like those for senior citizens or homeowners, can also lower your rates.

Accident-Free Good Driver Discount

Many car insurance companies offer a good driver discount. Typically, this means that you can save a certain amount by staying accident- and violation-free for a set number of years. These discounts can also be paired with telematics systems, which track your driving behavior through an app or device installed in your vehicle. Some insurers also provide a discount for drivers who take a safe driver course.

Some companies also offer accident forgiveness coverage, which means that you won’t get a rate increase after an incident for a period of time. Depending on the insurer, you can often obtain this discount by being accident-free for five to seven years. Some insurers that offer this include State Farm, Geico and Farmers. In addition, you may be able to receive a good driver discount through Liberty Mutual’s telematics program, RightTrack. This type of discount can reduce your premium by 10% to 22% if you remain accident- and violation-free for the specified amount of time.

Good Student Discount

Many insurance companies offer good-student discounts for teenagers and college students. These are typically based on grade point average, age and other factors that vary by insurer. They apply to both student drivers listed on their own policies and those listed as additional drivers on their parents’ policy. A good-student discount is not a replacement for safe driving, however. Drivers should still avoid car accidents, traffic violations and other risky driving behaviors to maintain a clean driving record and save on premiums.

Other discounts for young drivers include a driver’s education discount and a distant student discount (for those who attend school more than 100 miles from home without a vehicle). Piggybacking on a parent’s policy and having safety features in the vehicle are other ways to reduce rates for youthful drivers. In addition, some insurers offer discounts to members of college and alumni organizations and fraternities or sororities. Individual insurance companies set their own guidelines for eligibility and may ask to see high school report cards, college transcripts and dean’s lists to verify academic status.

Mature Driver Discount

If you’re a baby boomer, you might be interested to know that many auto insurers offer discounts specifically for mature drivers. For example, GEICO’s Prime Time program allows drivers over 50 to save money on car insurance by taking a defensive driving course.

Additionally, AARP partners with Travelers to offer a discount on their auto insurance policies. The company also offers accident forgiveness, which can prevent your premium from increasing after an at-fault accident.

To qualify for the discount, you must be a mature driver ages 55 and up with a clean driving record. Then, you must complete a six-hour online Mature Driver Improvement course approved by your state’s department of highway safety and motor vehicles. At Traffic Safety Institute, our course is convenient and easy to take at your own pace with a $100 savings guarantee.

The course covers a variety of topics, including the effects of medication and alcohol on driving, crash avoidance techniques and DWI penalties. Upon passing the course, you will receive a certificate that you must submit to your insurance provider.

Payment Discount

Most insurers offer discounts for drivers who insure multiple cars with them, and some also provide a discount when drivers combine their car insurance policy with other types of coverage such as homeowner’s or renter’s. Drivers can save on average about 12% by bundling their policies, according to State Farm.

Some companies combine the good student and mature driver discounts into one safe driving discount that’s available to those who have avoided accidents or traffic violations for a certain number of years. USAA and Progressive are among major insurers that offer this discount, which can reduce premiums by about 15%.

Drivers can often save by using a company’s app or device to monitor their driving and earn discounts. Usage-based insurance programs like Snapshot from Progressive, Drivewise from Allstate and SmartRide from Nationwide are all examples of these devices that can help drivers lower their auto insurance rates.

Some insurers also reward loyalty with discounts for people who consistently pay their car insurance on time. But while these discounts can be a good incentive to stick with a company, NerdWallet recommends periodically shopping around for the best rate.

Defensive Driving Discount

A defensive driving course is one of the easiest ways to save money on your auto insurance. Depending on the insurer and state, these courses can reduce premiums by between 3% and 15%, saving drivers dozens of dollars each month. They can be taken in person or online, and it’s up to the driver to decide which format works best for their schedule.

Many large car insurance providers offer defensive driving discounts. Farmers, for example, offers a rate reduction of up to 10% for all drivers who complete approved courses. It’s important to note that this discount is not automatic and must be requested when applying for a policy.

To qualify, the driver must have no at-fault accidents or claims on their record. Then, they must pass the course and provide their certificate to the insurance company to have it applied to their policy. For most companies, this discount lasts for three years. Drivers should also keep in mind that a defensive driving course is not a cure-all for bad driving habits, and it’s still important to drive safely.