Between the cost of cars today, insurance rates, and regular maintenance, driving expenses are a significant portion of a car owner’s budget. Auto insurance discounts for safe driving can reduce the overall costs for drivers who qualify. Common discounts on auto insurance policies include those associated with clean driving records, accident-free records, good student discounts, mature driver safety courses and/or defensive driver courses, low mileage discounts, as well as discounts for bundling, customer loyalty, enrolling in automatic payments, or paying in full.
Insurance discounts are not always automatically applied. Drivers who work with a trusted insurance agent have someone working on their behalf to find savings without sacrificing coverage. Independent insurance agencies in local markets tend to be on the lookout for discounts that work for their clients’ needs. This helps them keep their clients driving at the lowest auto insurance rates available.
What are the Common Safe Driver Discounts Offered by Most Insurance Carriers?
Many safe driver discounts are regularly advertised, and they are the first discounts every driver should ask about. Captive agencies that only represent one insurance carrier are limited in the discounts they can offer. Independent agencies have more flexibility to research multiple carriers to find the right discounts for each client. They can identify the discounts that match up with a safe driver’s circumstances.
The most common safe driver discounts are available for clean driving records and accident-free driving records. The typical history under review for this type of discount is between three and five years, and the savings range from 10% to 30% discounts.
A clean driving record means no at-fault accidents or moving violations. The discounts usually increase as the number of years with a clean driving record increases. Speeding tickets, careless or reckless driving citations, and DUI charges will all reduce or disqualify this discount. Minor violations like parking tickets do not usually have an effect.
An accident-free record focuses on insurance claims history. Drivers who have not filed an accident claim in a few years can receive this discount. Small comprehensive claims for theft or vandalism do not usually impact this discount.
Other safe driver discounts that are a bit more limited in scope, but still quite valuable for those who qualify, include:
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Good student discounts for drivers under the age of 25 who maintain at least a 3.0GPA. Most insurance agents will request proof of grades for this discount.
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Mature Driver Safety Course and Defensive Driver Course discounts for drivers who complete safe driving courses. These courses must be approved by the state Department of Transportation in order to qualify. Some courses are specifically for mature drivers over the age of 50, but others may apply to younger drivers as well.
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Low mileage discounts for drivers who maintain a limited commute. This discount is valuable for people who work from home or mostly stay local in their day to day activities. Insurance companies may require specific mileage information that confirms the car is being driven less than 10,000 miles per year.
If you are searching for auto insurance policies online, it can be hard to know if you’re comparing apples to apples and whether discounts apply to your situation. Always ask your local insurance agent which safe driver discounts could apply so that they are able to find the best rates at renewal time.
Are there Technology-based Safe Driving Programs for Discounts on Auto Insurance Policies?
Technology driven safe driving programs use devices to monitor driving habits. Safe drivers attach a small tracker inside the car and connect it to an app on their phone. The device tracks things like acceleration, braking, speeding, and the time of day spent in the car. Newer versions of the tracking software may be available in app-only form and do not require a separate device.
Insurance carriers usually give an immediate discount for just installing the device. From there, additional discounts are based on the data collected over a few months. Driving performance data scores a driver’s safety rating, which can then translate into deeper discounts for safe driving.
These technology-based discount programs are not the right fit for everyone. Drivers who commute through Philadelphia and the surrounding suburbs, for example, may see lower metrics due to stop and go traffic patterns in the region. Drivers who stick to local, low speed limit roads can achieve great scores for bigger discounts. Highway drivers might see similar high scores, provided they handle local traffic safely. Many drivers do not like the invasive nature of driving monitors, so even the initial discount is not worth their discomfort.
Actual car technology can also provide insurance discounts. Modern cars have safety features such as lane departure warnings, emergency braking, and adaptive cruise control that reduce crashes and insurance claims. Even older technology like anti-lock brakes, anti-theft systems, and airbags are recognized safety enhancements. Carefully review your car’s safety features with your agent to make sure every bit of technology can be reviewed for discount eligibility.
Discounts that Reward Overall Responsibility
Many auto insurance discounts are tied less to safe driving and more to general responsibility. Car owners who practice diligence in their decisions are rewarded with lower rates and various discounts.
These discounts vary by insurance carrier, but they can reduce premiums by up to 20% depending on a driver’s overall circumstances:
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Bundling discounts for carrying multiple policies with one insurance provider.
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Loyalty discounts for remaining with the same insurance company for multiple years. This discount should still be compared to general rates with other carriers, just in case there are more competitive rates even compared with the discount.
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Automatic payment and paperless statement discounts reduce administrative costs for the company, which they often pass on to the customer.
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Paid-in-full discounts can maximize savings by removing the fees most drivers pay for making monthly installments.
Professional, alumni, and employer associations often work with insurance carriers to create affinity discounts. Many members of these associations do not even realize they have access to these savings! Experienced auto insurance agents will ask about memberships and employment information during the initial quote process and every year during annual reviews. If your agent does not bring it up, be sure to ask what affinity discounts are available with any given insurance carrier.
Maximize Your Safe Driver Discounts in Pennsylvania and New Jersey
Safe driving is not only responsible; it can also make a profound impact on your household budget! Auto insurance rates are designed to reward drivers who do their part to avoid accidents and moving violations. Many drivers qualify for multiple discounts within a policy, which has the potential to significantly reduce annual premiums.
Discounts are not the only factor in choosing the right car insurance for your needs, though. Make sure you are working with an experienced agent who evaluates your big picture so that you always have the right coverage before those discounts come into play. At Freedom Insurance Group, we work with Pennsylvania and New Jersey drivers to research discounts as they apply to each client’s insurance needs. We never want our clients to wind up in a situation where their coverage is insufficient because we convinced them to save a few dollars.
As an independent agency serving the Bucks, Montgomery, Philadelphia, Mercer, Camden, and Burlington County regions for over 20 years, we know what to ask our clients and what to look for in a policy to ensure that they have the right auto coverage at the right price.
Contact us to learn about safe driver discounts and other car insurance discounts while we get started on your auto insurance quote.
