If you haven’t had any tickets or car accidents in the past few years, congratulations! By most insurance company standards, you are a good driver.
But accidents can happen to anyone, so even with a clean record, car insurance is still a must. As a good driver, you have an advantage because insurers reward customers like you with lower rates. Still, prices vary by company, so it’s wise to shop around and compare prices.
learn more: How does car insurance work? Basics explained.
Insurance companies generally define a good driver as someone who has had no at-fault accidents or moving violations on their record for the past three to five years. Exact definitions vary by company and state.
Below are some of the cheapest car insurance rates for drivers with a clean record.
learn more: Cheapest car insurance in USA.
Car insurance is cheaper for good drivers because insurers calculate that they are less likely to have accidents and file claims than drivers with recent tickets and accidents.
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Maintaining adequate coverage is essential regardless of how well you drive. However, you cannot control others on the road or prevent damaging events such as storms or natural disasters.
Most states require at least a minimum amount of liability insurance, which covers damages and injuries you cause to others in an accident. Other types of insurance cover you, your passengers and your car. Here is a more detailed look at the main types of coverage:
Liability insurance covers damages and injuries you cause to others in an accident, as well as legal fees if you are sued. Bodily damage liability covers injuries to other drivers and their passengers, and property damage liability pays to repair or replace other property when you are at fault for an accident.
Collision insurance covers your car if it is damaged in a collision with another car or object, such as a pole.
Comprehensive insurance covers your car if it is stolen or damaged by vandalism, fire, storm, collision with an animal, or any other incident.
Medical payments (Medpay) cover your medical expenses and, in some states, your passengers after an accident, regardless of who is at fault. The coverage also pays for funeral expenses after a fatal accident.
Personal Injury Protection (PIP) pays for your medical expenses and, in some states, for your passengers after an accident, no matter who is at fault. PIP is required in some states, but not an option or available in others.
Uninsured Motorist / Underinsured Motorist If another driver causes an accident and has no or insufficient insurance, the driver cuts. Uninsured/underinsured motorist bodily injury insurance covers your medical expenses, and uninsured/underinsured property damage insurance pays to repair or replace your vehicle.
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Insurance companies usually offer automatic discounts for having a clean driving record, but usually don’t specify the amount online because the savings vary by policy and state. Here’s a closer look at the good driver’s discount requirements from these car insurance companies:
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American family: A good driving discount applies if you have had no accidents, violations, or claims in the past five years.
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GEICO: A discount of up to 22% applies on most covers if you have been accident-free for at least one year.
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the farmers: The policy offers a discount to any driver who has had zero accidents or traffic citations in the last three years. There is also a discount for families where no driver on the policy has been at fault in the last five years.
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The duality of freedom: Discounts apply for no claims or violations. The company’s website does not specify how long drivers must be claim- or violation-free to qualify.
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All over the country: The savings are available to drivers who have not had any at-fault incidents or major violations for at least five years.
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developed: Drivers with no tickets or accidents in the past year can save an average of 34%.
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State Farm: New customers get a good driver’s discount if they haven’t had any accidents or moving violations for three years.
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passengers: Drivers who have had no accidents, major comprehensive claims, or moving violations in the last three to five years receive a safe driver discount.
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USAA: Safe driver discounts are available for maintaining a good driving record for more than five years. Ask a company representative for details on the definition of a good driving record.
Insurers also promote safer driving discounts through their usage-based insurance programs. These programs track driving through an app, plug-in device, or the vehicle’s built-in telematics system. Your premium depends in part on when, how much, and how safe you drive.
The program usually offers an early discount for signing up. Other savings depend on your driving habits. The State Farm Drive Safe and Secure and USAA Safe Pilot programs, for example, both offer a 10% discount for enrollment and up to 30% savings for safe driving.
Yes, you may need more financial protection than what your state mandates because state car insurance requirements are relatively low and limited in their coverage. For example, the state minimum does not include your car coverage.
Buy at least the minimum insurance required by your state, and buy additional coverage to meet your financial needs in case of an accident or other disaster. A rule of thumb is to buy full car insurance coverage, which includes collision and comprehensive insurance, if your car is worth more than a few thousand dollars or you still have a loan or lease. Buy enough liability coverage to protect your assets. Consider other options, such as roadside assistance and rental coverage; They don’t cost much but can work in an emergency.
Team Manny Edited this article.
Unless otherwise stated, the above estimates are provided by Savvy Insurance Solutions (“Savvy”). Savvy operates a marketplace for home and auto insurance, and is a licensed agency in all 50 states. Estimates are based on 3 million data points using Savvy’s in-house machine learning models, and Savvy’s nationwide data set includes more than 15 major insurance companies. This includes data from more than 2 million insurance accounts linked through Trellis Connect, an in-house technology that allows users to “link” their insurance accounts before searching for insurance, and tens of thousands of policies closed by Savvy’s own agents. It takes into account countless factors to create a forecast, such as:
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Age of the policyholder
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Number of vehicles
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zip code
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Vehicle age
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The insurer
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…and more
Savvy generates estimates by running models against multiple inputs to the parameters of interest. For example, the “young driver” estimates were made by adjusting the policyholder’s age coefficient in the pricing model while holding all other variables constant from the baseline for “full coverage.” The models enable hyper-personalized predictions that take into account a wide range of user characteristics (eg, teen drivers in certain states, teen drivers with new cars, teen drivers in certain states with new vehicles) to provide a unique and tailored experience to individuals. The charts above are a subset of the types of personalization that Savi can do.
The following definitions are used by Savvy when providing price estimates for various types of coverage.
Full Car Insurance Coverage: A policy with comprehensive, collision, and liability coverage
The average policy holder: A 48-year-old driver who owns a 13-year-old car and lives in an average-income zip code
Top driver: A 70-year-old policyholder with full coverage car insurance
Good Driver: Drivers of all coverage types, vehicle types, and locations with no tickets, accidents, or DUIs
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