Compare Safe Driver Discounts: Top Insurers & How to Qualify

If car insurance costs have your head spinning, don’t worry: a safe driver discount will help reduce your car insurance premiums. In this article, we’ll discuss the best discounts and how to qualify for the best auto insurance rates.

Let’s get started.

Key Takeaways

• Safe driver discounts are a way to reward good driving behavior through lower car insurance premiums.

• Allstate offers the highest percentage of safe driver discounts, while State Farm offers the widest variety of safe driver discounts.
• Driving apps monitor driving habits through an app or plug-in device. 
• There are multiple ways to earn safe driving discounts on your auto policy.
• A clean driving record is typically three years of being ticket and accident-free

What Is a Safe Driver Discount?

Insurance companies offer safe driver discounts to reward safe driving habits. Safe driving leads to fewer claims and less costly claims for insurers, allowing insurers to pass those savings on to their customers.

There are several different types of safe driving insurance discounts, such as:

• Good driving discount. This discount is based on not having any tickets or accidents for a specified length of time. 
• Accident-free discount. The criteria for this discount are solely based on not having accidents for the designated time period. Accident forgiveness is another way insurance companies provide a way to save money by preventing your insurance from increasing from just one accident in a given period.
• Defensive driving discount. This discount most often refers to taking a defensive driving course of some kind.
• Telematics discount. Telematics programs (also called usage-based insurance) give feedback on drivers' road habits through the use of devices or apps. 

Policyholders may qualify for multiple safe driver insurance discounts at once, allowing for even more significant savings. Ask about safe driving discounts when shopping for car insurance quotes. 

How Does a Safe Driving App Work?

A safe driving app is connected by a Bluetooth beacon or to a plug-in device in your vehicle that monitors your driving habits. Some of these include harsh braking and cornering, quick acceleration, average drive time and time of day, speeding, and using mobile phones while driving. Your insurance company uses this data to determine the premium for your auto insurance policy.

The main purpose of tracking mileage through safe diving apps is to allow your insurance company to rate your premiums more accurately based on actual usage rather than a range of usage. Safe drivers can also be rewarded based on custom data that more concisely matches premium to risk. 

An added benefit to safe driving apps is that most come with a dashboard that provides almost real-time data on your driving, helping you become a safer driver over time. 

Safe Driver Discounts from Top Insurance Companies

The majority of top auto insurance companies provide multiple types of safe driver discounts, and many of them are easy to qualify for if you maintain a good driving record. Knowing what your auto insurance company offers and its eligibility requirements can help you decide which safe driver discounts are best for you.

State Farm Safe Driver Discounts

State Farm offers six safe driving-related discounts to its policyholders. 

Nationwide Safe Driver Discounts

Nationwide’s policyholders have four safe driving-related discounts to choose from. 

Allstate Safe Driver Discounts

Allstate customers can choose to be part of Allstate’s Drivewise driver safety program, their safe driving club, or both.

Farmers Safe Driver Discounts

Farmers Insurance has four safe driving discounts available to help keep premiums down.

Geico Safe Driver Discounts

Gieco’s three safe driving discounts can make a significant impact on premiums. 

USAA Safe Driver Discounts

USAA customers have access to four safe driving-related discounts. 

How to Earn a Safe Driver Discount

There are many different ways to qualify for a safe driver discount. Some require a little work to complete a driving program, and others are automatic rewards for good driving behavior.

Maintain a Clean Driving Record

The easiest way to earn a safe driver discount is to maintain a clean driving record of no tickets or accidents for at least three years. This discount usually applies automatically,  but ask your insurance agent if you qualify.

Complete a Safe Driving Course

Many insurers now offer discounts for completing a qualifying defensive driving course and other safe driving courses. Most of these courses are virtual, don’t take long, and are worth the refresher and auto insurance discount. 

Prepare in Advance

Teen drivers need all the discounts they can get, and many that will be available once they receive their license can be worked on prior to their driver’s exam. A good student discount usually requires a “B” average for the preceding grading period, and a driver’s education program can be considered a permitted driver. 

Consider a Safe Driving App

Safe driving apps can be a way to save a significant amount on your insurance. If you are uncertain, take it for a test drive. You can always withdraw from participating in the program at any time. It may take as much as six months to see the true benefit of driving apps. Until then, you may receive a flat discount for participation in the program. 

Remember other discounts and ways to save on your premium. Paperless billing and other payment-related discounts can help, as can raising your deductibles, bundling your auto and renters or home insurance, and reviewing your coverages. 

FAQ: Safe Driver Discounts

Can a safe driving app make my rate go up?

Some car insurance companies only use telematics information to provide discount opportunities for your insurance policy. However, for many companies, a safe driving app can cause your insurance rate to go up, even indirectly. One example is if you have been receiving a low-mileage discount, but the Safe Driving app information indicates you routinely drive over the low-mileage discount requirements. 

Additionally, your insurer may provide a base discount for using a telematics program until enough data can be obtained to provide an accurate discount based on your personal data. If the discount you qualify for after receiving your data is less than the base discount, you may see an increase in the amount you pay. 

Can my insurance company sell my driving data?

It is possible that your insurance company could sell driving data obtained from telematics apps and devices. Ask your insurer about using your data before signing up for a safe driving app. There may be an opportunity to opt out of data use other than determining your safe driving discount. 

What constitutes a clean driving record?

A clean driving record typically means no tickers or at-fault accidents for three years. It may take five years or more to have a clean driving record for more serious violations, such as a DUI or reckless driving. Each insurance company sets its own parameters for what constitutes a clean record as it applies to car insurance discounts.

How does a safe driving app know who is driving my car?

Safe driving apps use your phone’s sensors to detect if you are a driver or a passenger. It also knows where a motorist is. Whether you are in Texas in your car, California on a bus, or New York in a taxi, your safe driving app can tell the difference. However, if you are the driver and your passenger uses your phone, the app may consider you distracted. Most apps will have an area to update the driver status for unique situations once the trip is logged. 

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.