Safe driver discounts: what a clean record is worth

What counts as a safe driver discount

Insurers reward a clean history under several names, and one policy can carry more than one. The rules behind each are set in the company's rating plan, so two insurers can treat the same record differently.

• Good driver or violation-free. No moving violations, or none above a set number of points, over a look-back period.
• Accident-free. No at-fault accidents over the look-back period. Whether an accident you didn't cause counts depends on how the company decides fault, so ask.
• Claims-free. No claims paid under the policy for a period, sometimes regardless of fault. The Wisconsin insurance office says insurers commonly reduce premiums for each year you stay insured with them without an accident or claim.
• Driving-behavior programs. Some companies price your current driving through an app or device instead of, or on top of, your record. See telematics and usage-based insurance.

Under each name the question is the same: what happened on your record, and how long ago. The discount is the other side of the surcharge you pay after a ticket or a crash, which our page on how your driving record sets your price explains.

Where state law requires a discount

Most states leave the safe driver discount to each insurer. Two that we checked write it into law, and their rules show what a typical standard looks like.

California's rule is the strongest: under the state's insurance guide, a qualifying driver gets the Good Driver rate, which must be at least 20% lower than that company's rate for drivers who don't qualify. See car insurance costs in California. In Maryland the discount is required but its size is not; see car insurance costs in Maryland.

Elsewhere, regulators list the discount as a common one without requiring it. The Texas Department of Insurance lists no claims and a good driving record, the Maine Bureau of Insurance a discount for drivers with a good record who renew with the same insurer, and the Hawaii Insurance Division notes that many companies offer three- to five-year renewal discounts. Each company decides whether it offers one and what it is worth.

How long an incident counts

The look-back period decides when you qualify again. Both state rules above use three years. Elsewhere the window is set in each rating plan and can differ by type of incident. A serious violation such as a DUI can count longer than a minor speeding ticket.

Two dates matter: the date of the incident and the date of your renewal. A ticket that drops out of the look-back period halfway through a policy term usually helps only at the next renewal. If a ticket or accident is about to age off, that renewal is a good moment to ask for new quotes; our page on when to shop for car insurance covers the timing.

When a clean record isn't enough

A safe driver discount comes off one company's price. A company that gives a large discount from a high starting price can still cost more than one with a smaller discount and a lower base rate. Compare the final premium, not the discount line.

The discount also doesn't follow you automatically. When you switch insurers, the new company checks your motor vehicle record and claims reports itself. Errors on those reports can cost you a discount you earned, so check them before you shop and ask the insurer to correct its records if something is wrong. Maryland's rule shows another catch: the required discount is tied to continuous coverage with the same insurer, so a new company may treat the same clean record differently. Ask before you move.

A newly licensed driver has no record to reward yet. Until one builds up, other discounts do more of the work: a good student discount, a driver training course where the company offers one, or a usage-based program that prices how you actually drive.

Some insurers sell or include accident forgiveness, which keeps the first at-fault accident from raising the price. It is a different product from a safe driver discount and has its own terms; ask what it costs, what it covers and whether it transfers if you change companies.

How to keep and use the discount

1. 1 Ask each insurer which clean-record discounts it offers and the look-back period for tickets, accidents and claims.
2. 2 Check your own record with your state's motor vehicle agency and your claims history report, and fix errors before you shop.
3. 3 Note when each incident ages off and ask for new quotes at the first renewal after that date.
4. 4 Think before filing small claims: compare the payout with the discount you could lose.
5. 5 Compare final prices on the same coverage, as our guide to comparing quotes line by line describes.

Questions drivers ask