How it works
- Most states: each company sets its own discounts. Texas, for example, lists a discount for having no claims and a good driving record among those insurers may offer. The look-back period, what disqualifies you and the size of the discount vary by company.
- California: every auto insurer must offer coverage to Good Drivers. You qualify if you have been licensed for at least 3 consecutive years and have no more than 1 point on your driving record, among other conditions. Good Driver rates must be at least 20% lower than the same company's rates for drivers who do not qualify.
A ticket or an at-fault accident can cost you the discount as well as add a surcharge, so the total price effect can be larger than the surcharge alone. Ask your insurer what would remove the discount and for how long, and compare discounts when you shop for car insurance quotes.
Related terms
Sources
- California Department of Insurance, Automobile Insurance Text Version Good Driver definition and minimum discount
- Texas Department of Insurance, Auto insurance guide discount for no claims and a good driving record; each company sets its own discounts
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