Car Insurance for Good Drivers: Best Ways to Save on Auto Insurance Premiums for Safe Drivers

Updated: October 3, 2024

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Car insurance providers reward good driving through benefits like better premiums or discounts. Discounts may be available if you have an accident-free record, usually called a safe driver discount or good driver discount. If traditional providers are out of your range, telematics- or usage-based car insurance is another option, where premiums are set depending on your driving record and car usage.

Overall, drivers with clean records will not have to compromise coverage to get to an affordable price point. Whether you choose a traditional or usage-based option, if you have a perfect driving record, insurance will be far more affordable than those with an accident, DUI or ticket in their history.

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Key Takeaways

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Car insurance providers reward good drivers by reducing premiums through discounts.

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A good driver is accident-free, violations-free and has a clean driving record.

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Many major providers offer good driver's auto insurance discounts. Such providers include GEICO, Nationwide, Progressive, Travelers, Farmers, State Farm and more.

Car Insurance Companies for Good Drivers

The best cheap car insurance for good drivers is with State Farm, with premiums averaging $883 per year. For military families, however, USAA is the best choice, offering premiums at an average of $679 annually. USAA insurance is only available to current and former military members and their families.

Despite these averages, your actual rates can vary based on other deciding factors. To determine your potential premium, use our car insurance calculator to estimate how much you may pay.

Insurance Companies for Good Drivers
Company
Average Annual Premium

Hanover

$1,460

The General

$1,438

Farm Bureau Ins of MI

$779

National General

$756

MoneyGeek’s analysis on the best cheap car insurance for good drivers uses a sample profile of a 40-year-old male with no violations looking for a full coverage policy with 100/300/100 liability limits and a $1,000 deductible.

Car Insurance Companies That Reward Good Drivers

Many major companies reward good drivers. Typically, companies offer discounts if you stay accident- or claim-free for a long period. The longer, the better the discount. That said, it’s better to consider providers that offer good driver auto insurance when choosing between policies if you have a perfect driving record.

  1. 1
    Allstate

    If you have an excellent driving record, Allstate offers $100 off your deductible when you sign up, with an additional $100 each year you drive accident-free up to a limit of $500.

  2. 2
    Farmers

    Farmers offer good drivers a car insurance discount in select states.

  3. 3
    GEICO

    Drivers with a perfect driving record who have insurance with GEICO may qualify for a discount if they remain accident-free for at least five years.

  4. 4
    Liberty Mutual

    Liberty Mutual offers safe driver discounts, whether you remain claims-free or accident-free. However, this may not apply in all states.

  5. 5
    Mercury

    Mercury may offer a good driver insurance discount if you or any driver on your policy remains accident- and violation-free for a certain period of time.

  6. 6
    National General

    National General offers a safe driver discount if you attend a defensive driving course. This is only available in certain states.

  7. 7
    Nationwide

    If you remain violation-free and have no accidents for at least five years, Nationwide will offer a discount. Even if you are just accident-free, you may get a separate discount.

  8. 8
    Progressive

    Progressive’s car insurance rewards good driving if you have no accident or violation for at least three years — which is a lower threshold compared to other providers.

  9. 9
    Selective

    You can receive a loss-free discount if you have not had a personal auto insurance loss over a certain period of time.

  10. 10
    Shelter

    Remaining accident and violation-free for at least three years can get you a safe driver discount at Shelter. This applies even if you switch to Shelter from another company. If you are a loyal Shelter policyholder, this discount may increase.

  11. 11
    State Farm

    If you’ve been insured by State Farm for at least three years and have no chargeable violation, you can get a discount. They also reward new customers who have been accident-free and violation-free for at least three years.

  12. 12
    Travelers

    At Travelers, you can get a good driver discount if you have no history of accidents, violations or major comprehensive claims for at least three years.

  13. 13
    USAA

    USAA requires that you maintain a good driving record for at least five years before they offer a safe driving discount.

Other Ways to Save on Premiums for Good Drivers

If you have a perfect driving record, there are more ways to save on auto insurance premiums beyond getting a good driver discount. For instance, you can combine multiple safe or good driving discounts, increase your deductible or opt for usage-based car insurance.

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    Find Other Discounts

    There are plenty of other car insurance discounts you can pair with good driving. For instance, if you bundle different policies or take a safe driving course, you may get a discount.

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    Increase Deductibles

    By increasing your deductible, you can easily reduce your monthly premium. Your deductible is how much you need to pay out-of-pocket when you file a claim.

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    Telematics-Based Car Insurance

    Good drivers might benefit from telematics-based car insurance. This determines your premiums based on your driving and usage. For instance, when you drive safely, your insurance premiums are lower.

What Is a Good Driver and How Much Is a Good Driver Discount?

A good driver is an individual who has had no violations, claims or bad driving record. They are drivers who actively participate in defensive driving and may even take courses to stay updated on traffic regulations. Providers reward good driving since it reduces the risk of the driver getting into an accident.

Good drivers pay $987 on average per year for auto insurance — $249 less than drivers who have been caught with a speeding ticket.

Good Driver With No Violation vs. Driver With Speeding Ticket

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Driver With Speeding Ticket

Average Annual Premium

$1,236
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Driver With No Violation

Average Annual Premium

$987
Annual savings for good drivers:$249 saved

This is 20% less expensive.

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MONEYGEEK EXPERT TIP

If you have a teen on your policy or haven’t driven for long, insurers may view your policy as risky, given the higher chances of getting into an accident. You may be able to reduce your premiums by taking a defensive driving course.

Frequently Asked Questions

If you’re curious whether car insurers reward good driving, MoneyGeek answered a few commonly asked questions below.

What is the best car insurance for good drivers?
Does car insurance reward good driving?
How much is a good driver discount?

About Mark Fitzpatrick

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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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