Safe driver discount

A safe driver discount rewards a clean record. Insurers grant it to drivers who have gone a set period, commonly three to five years, without at-fault accidents, serious violations or, at some companies, any claims at all. Names vary, including accident-free, claims-free and good driver discount, and it can be one of the larger discounts on a policy.

Insurers check eligibility through your motor vehicle report and claims databases when you apply and at renewal, so the discount adjusts as incidents age off your record. California is unusual in setting the rule by law: under Proposition 103, drivers who meet the state's good-driver criteria must be offered a policy priced at least 20% below the rate they would otherwise pay. Example: a driver whose premium would be $1,500 a year pays $1,200 with a 20% discount (hypothetical figures). A single at-fault accident can remove the discount and add a surcharge at the same renewal, so the price jump is bigger than the surcharge alone.

The discount is different from telematics programs, which score how you drive now rather than your history, and from accident forgiveness, which can keep a first accident from costing you the discount. See car insurance discounts: the complete list.