Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jan 10, 2020

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One of the ways auto insurance companies are trying to separate themselves from their competition is by selling all of the additional features and benefits they offer that their competitors may not. In reality, auto insurance alone is pretty basic.

There are varying levels available for the consumer to purchase, however; at its root, the product is pretty much the same from company to company. How the product is offered really distinguishes one company from another.

One of these additional benefits being offered today is “Good Driver Auto Insurance.” Here is a high-level overview of what it is, and how it is offered by different companies.

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Good driver auto insurance is pretty much what it claims to be. It is auto insurance, which generally offers a discount, refund or additional benefit to those who possess and maintain a good driving record. Now companies will differ in how they offer this additional perk, and that is where one needs to focus their research when comparing auto insurance companies online.

Good Driver Discounts

There are a couple of different ways a good driver discount is offered to the consumer. The first is a discount placed on one’s normal premiums. Dependant on how often one pays their premiums (i.e. annually, bi-annually, monthly, etc.) will dictate how often these discounts are realized, but ultimately the insurance company is willing to provide their services to their consumers proving to be less of a risk at a discounted cost.

There are also terms and conditions that come along with these discounts, which usually include the consumer maintaining a good driving record. This means avoiding at-fault accidents and tickets for not following the rules of the road such as speeding, tailgating and not driving while impaired.

Any violation of these terms may be subject to the consumer losing this specific discount.

Good Driver Rewards Programs

Much like the credit card industry, auto insurance policies are finding increased revenue from utilizing rewards programs. These may be referred to as “accident forgiveness” or a “safe driver rewards”. Regardless of what the program itself is called, the premise is simple — the better one’s driving record is or remains, the more opportunity one has to benefit from it.

Drive safe. Earn rewards.

For example, with the accident forgiveness programs, for every set period of time (generally six months or a year) a driver goes without an accident, the auto insurance company will offer a set dollar amount (generally $100 per period of time) off of the deductible the consumer would have to pay should they be involved in an at-fault accident.

This is a great benefit in that should the consumer be in an at-fault accident, the amount they have built up in their accident forgiveness fund will be applied to their deductible making what they have to pay in deductibles less expensive.

Earn Your Savings

The other true beauty of this type of program is that most companies cap what they are willing to let consumers earn in accident forgiveness deductibles at a set amount which is usually $500. Because of this though, consumers can carry a higher deductible lowering their normal premiums because with $500 set aside in accident forgiveness, they will not feel as much of a fiscal impact should they be required to pay a deductible.

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In addition, the longer consumers go without an accident, the more likely the auto insurance company is willing to forgive one, or in some cases, even two accidents without increasing the consumer’s premiums.

Another type of rewards program auto insurance companies offer is a cash back rewards program.

Very similar to the accident forgiveness programs, for each set time period met without an at-fault accident, the consumer is able to earn a refund from their auto insurance company.

This may come in the form or a check or a gift card, but either way the consumer is earning cash back for having or maintaining a safe driving record. Depending on what it is each consumer may benefit most from will dictate which rewards program they should choose.

Multi-Good Driver Discounts

Something else to consider is good driver discounts apply to each individual driver on the auto insurance policy. Although more vehicles and more drivers will cost more money, the more discounts each of those drivers on the policy can obtain based on a good driving record will make a family or group policy a little more affordable in the long run.

This is also a great coaching tool for those who have drivers on their policy just starting out behind the wheel. Understanding their choosing to make good decisions on road helps out financially may help consumers to encourage their younger drivers to be safe and not take chances that could put their driving records or auto insurance premiums in jeopardy.

In conclusion, is there such a thing as good driver auto insurance policies? Absolutely! As with any major purchase a household makes though, it is best to shop around and compare benefits and quotes.

There are a number of online comparison sites in which consumers can compare auto insurance companies side by side.

In the end, the most important thing about having auto insurance is to protect everyone involved in an accident regardless of who is at fault. Maintaining a good driving record is just a simple way to help make that auto insurance more affordable.

Check out the FREE auto insurance comparison tool today by entering your ZIP code!

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  2. What is a Preferred Risk Driver?
  3. How do I add a family member as an additional driver to my auto insurance policy?
  4. Who is a Good Driver?
  5. How much can I save with a Good Driver Discount?