All About the Good Driver Discount
Last Updated on June 30, 2020
When it comes to car insurance, any discount you can receive is a good thing. Car insurance can be quite expensive, depending on several factors such as where you live and what type of car you drive. One of the universal discounts that is often offered by car insurance companies is the good driver discount. These programs have become very common, and new technology is bringing them full circle with some companies.
The Two Types of Good Driver Discounts
There is more than one type of good driver discount, depending on the car insurance company. Some companies combine the two types of discount into one combination discount. However, insurance companies that offer the two types of discounts separately offer you more flexibility in being able to get some type of discount on your car insurance.
Accident-Free Discount
The accident-free discount, or the claims-free discount, is something you can get if you do not have any accident claims within a specified number of years. Some car insurance companies require three years of accident-free driving while others require five years without a claim. The discount may also be stacked with decreasing deductibles for each year that you go without filing a claim.
Good Driver Discount
This type of discount is given if you have no traffic violations on your driving record within a set amount of time. Some car insurance companies allow you to have one point on your license and still receive the discount, while others require you to have a completely clean driving record. Again, the period of time you must have a clean record for ranges from three to five years depending on the company.
What Can I Do to Get a Good Driver Discount?
The best way to qualify for a good driver discount is to obey all traffic laws and use defensive driving tactics to avoid auto accidents. A defensive driving course can help young or new drivers learn how to avoid car accidents. Defensive driving courses have the added bonus of removing points from your license in some states.
Apart from being a safe driver, different companies have different requirements to qualify for their good driver discounts. Find your company below to see what good driver discounts they offer and how to qualify for them.
Good Driver Discounts by Company
| Insurer | Good Driver Discounts |
|---|---|
| Allstate | Allstate Premier Discount - Save up to 22% off your insurance without any violations or accidents for 3 years. Allstate Premier Plus Discount - Save up to 35% off your insurance without any violations or accidents for 3 years. Allstate Safe Driving Bonus - Every six months you drive without an accident, Allstate will send you a rebate check of 5% off your premium. |
| American Family | Accident-Free Discount - After three years without an accident, you'll get 5% off your premiums. After six years, you'll get 10% off your premiums. Good Driver Discount - 5%-10% off your premiums for drivers with no accidents, violations, or claims. |
| Erie Insurance | Safe Driver Discount - Drivers with a clean record over the last 3 years enjoy a 15% discount with Erie. |
| Esurance | Claims-Free Discount - After five years without an accident or a DUI you can save 10-25% off your premiums. Good Driver Discount - Save 30-40% off your premiums if you've had your license for at least 3 years and have 0 or 1 penalty points on your record. |
| Farmers | Safe Driver Discount - Farmers offers a "safe driver discount." Savings vary by state. |
| GEICO | Drivers with at least five years of accident-free driving save up to 26% on their premiums. Drivers with five years of no citations also receive a discount (varies). |
| Liberty Mutual | Good Driver Discount - If there have been no accidents or violations on your record for the past five years, you can save 15-20% off your Liberty Mutual premiums. You will also qualify for free accident forgiveness. |
| MetLife | Super Driver Discount - Drivers with clean driving records can save up to 12% off their premiums. MetRewards - Drivers with no claims or violations for five years can save up to 20% off their premiums. |
| Nationwide | Drivers with no accidents or major violations for five years save up to 10% off their premiums, depending on what state they live in. |
| Progressive | Drivers with no tickets or accidents in the past 3 years save an average of 31% on their policies. |
| State Farm | Accident-Free Discount - Drivers with three-years of no accidents can save up to 15% off their premiums. Drivers with six years of no accidents can save up to 20% off their premiums. Drivers with ten years of no accidents can save up to 25% off their premiums. Good Driving Discount - Drivers with no violations or at-fault accidents for 3 years receive a good driving discount. |
| Travelers | Drivers with no claims or incidents for the last three years save 10% on their premiums. Drivers with no claims or incidents for the last five years save 23% on their premiums. |
| USAA | Accident-Free Discount - Five years of accident-free driving earns USAA policyholders a discount. Savings vary by state. |
New Technology Leads to a New Kind of Good Driver Discount
Some of the major car insurance companies are offering a new kind of good driver discount based on the latest technology. Using an app on your phone combined with a sensor that is placed on your dash, your driving skills are monitored by the technology.
The sensor monitors different aspects of your driving, such as:
- How quickly you accelerate
- How hard you brake
- Your average driving speed
- How many miles you drive per month
Not every car insurance company offers this new technology, but it is estimated that it could become standard in the future. A few car insurance companies are even requiring you to install the app on your phone in order to have a policy in some cases.
If you have multiple drivers that are using the same vehicle, it may not be beneficial to use this new technology. If one driver has great defensive driving skills and other drivers do not, the results of the tech gathering will be skewed, and it could affect your discount.
Additionally, if you have a clean driving record and are accident-free but know that you tend to brake hard or speed on occasion, it may not be beneficial to use the new technology. You could save more by going with the traditional good driver discounts. If the tech reveals that you are not the safe driver you appear to be, your premiums could actually go up instead of down.
Do Good Driver Discounts Stack?
In some cases, you may be able to stack good driver discounts. If your car insurance company splits the two types of good driver discounts, you can usually qualify for just one or both the accident-free and the good driver discounts.
You can also stack good driver discounts for multiple drivers. If each driver on your policy qualifies for the good driver discounts, you can stack those discounts for each driver. The more good drivers you have on your policy, the lower your car insurance premiums will be.
For car insurance companies that use the new technology, stacking may work differently. You may be able to get the tech-driven good driver discount and an accident-free discount. In most cases, it will not stack with an additional discount for having a good driving record.
Other Perks for Good Drivers
In addition to these common discounts, some car insurance companies give you additional perks for being a safe driver. If you are accident-free and violation-free for a period of time, some car insurance companies will give you accident forgiveness and minor traffic violation forgiveness coverage. Having this coverage means that your premium rates will not go up if you have an accident or traffic ticket. However, an incident invoking forgiveness coverage could strip you of your good driver discount depending on the car insurance company.
Getting Discounts as a Safe Driver
Many car insurance companies do not advertise their safe driver discounts. Your current car insurance company could offer such discounts and you don’t even realize it. If you think you might qualify for a safe driver discount, contact your car insurance company or agent to find out if it is available with your current policy. You can also call around to other car insurance companies and go online for quotes to learn if they offer a safe driver discount.
