How much is a Good Driver Discount?
The Good Driver Discount is one of the most common car insurance discounts and can often save people up to 20% or more on car insurance premiums but who is a Good Driver?
Anyone can define high-risk drivers. Drivers convicted of driving under the influence (DUI), have a long history of car accidents, reckless traffic citations or under an SR-22 form filing requirement are obviously higher risk than drivers with a clean driving record. But what about young drivers with no car accidents or mature drivers who simply never had car insurance for a couple years?
In order to understand the Good Driver Discount (also known by the acronym GDD) you should understand what a good driver is according to car insurance companies.
Who is a Good Driver?
Good Drivers fall into a “preferred risk” category by car insurance companies and actually do have a formal profile most auto insurers use. The key characteristics of a good driver profile will meet all of these factors (and possibly a couple more):
- Aged 25 or over and licensed for at least 5 years
- Clean Driving Record for at least 3 years: This means no accidents or moving violations for at least 36 months (some insurers use 60 months)
- Good Credit: Good credit score above the national average
- Good Citizen: Drivers without a conviction for vehicle related crimes
- Defensive Driver Course: Although this discount may only be applied if the course is on the approved list of courses by the car insurance company
If your profile contains all these 5 items then you will have access to the best car insurance rates. Obviously other factors such as the type of car insured and how the vehicle will be used also play a big role in car insurance rates but your individual profile is the best measure of eligibility for the good driver discount.
About The Good Driver Discount
Car insurance premiums are based on the risk of you filing a future claim and if you fall into the preferred risk level (i.e. a good driver) then car insurance companies will extend a discount that can be up to 20% or more in some cases. If you have a high-risk profile however you may see much higher premiums or denied insurance altogether.
Do Parking Tickets Affect my Good Driver Status?
No. Parking tickets do not count against you. Only moving violations affect your good driver status. Note that moving violations are more than running a red light. Not wearing your seatbelt or driving with no insurance are still moving offenses in the eyes of a car insurance company.
How much is the Good Driver Discount?
Your car insurance premiums are based primarily on the type of car insured, your driving record and how much the vehicle will be used. Other factors include where you live, how many drivers are in the household and others. Drivers eligible for the GDD can save upwards of 20% or more on premiums. Its important to note that if you lose this “preferred risk” status however it will be hard to switch car insurance companies and get anything less than standard car insurance rates. Think of the GDD much like good credit. If you have good credit you can get almost anything but with a couple late payments your options become extremely limited and hardly ever qualify for the best rates. Try to keep a good driving record and comply with traffic laws at all times.
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