Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Jul 13, 2020

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In a nutshell...

  • A good driver discount is one of the most popular car insurance discounts on the market
  • Drivers who avoid accidents and other types of traffic violations are eligible for the discount
  • Good drivers can save as much as 20 percent off their monthly premiums

The good driver discount is one of the most popular car insurance discounts and offered by almost all car insurers nationwide.

While auto insurance companies provide many types of car insurance discounts almost no other way discount provides as much savings on auto insurance premiums as the Good Driver Discount.

GDD is a common acronym for the good driver discount

Since car insurance rates are based on risk, its pretty easy to assume drivers convicted of drinking and driving, dangerous driving and a long claims history will pay higher car insurance premiums, but for those who have a good drying record how do you know if a good driver discount applies to you?

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What is the good driver discount?

Car insurance companies apply a risk formula to every applicant in order to calculate car insurance premiums. Risk is basically defined as the foreseeable risk of a driver to file future claims.

This formula consists of many components with the greatest being your prior driving record.

Applicants with a good driving record are determined to be of lower risk becoming eligible for car insurance discounts while high-risk drivers will receive higher car insurance quotes and possibly even be subject to denial of coverage.

Drivers who have a clean driving record for at least three (3) years are usually eligible for the Good Driver Discount.

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Who is a good driver?

Very fair question since many drivers tend to think they are good drivers, however, the definition is pretty clear. Basically, any driver who has a clean driving record free of moving violations and accidents in a 36 month period will usually be labeled a good driver.

What about parking tickets? Parking tickets do not count towards the assessment of your good driver status.

Some car insurance companies do have exceptions for a single accident or ticket in this three year period this exception is often reserved for speeding tickets where the driver was not operating the vehicle at excessive speed and only normally applies to existing policyholders.

When comparing car insurance rates its important to note your current car insurance company may be the only company to offer a Good Driver Discount if you have had a speeding ticket or accident in the last 3 years, depending on the circumstances of the violation.

How much can I save with a good driver discount?

The car insurance industry is full of standard definitions and good drivers have a formal label being defined as “preferred risk drivers” with a profile that reads like this:

  • Over 25  Drivers over the age of 25 holding a drivers license greater than 5 years
  • Clean Driving Record (36 Months)  Personal driving history clear of auto accidents, tickets and moving violations for at least the prior 36 months
  • Good Credit  Credit score greater than the local consumer average
  • Good Citizens  Drivers never convicted of any vehicle-related crime

Good driver discounts can potentially save more than 20 percent off car insurance premiums for many drivers but will depend on who the car insurance company is and the overall application profile.

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References:

  1. https://www.statefarm.com/simple-insights/saving/car-insurance-costs-and-moneysaving-tips
  2. https://www.nationwide.com/safe-driver-discount.jsp