California Good Driver Discount – How Much Can You Save Actually?
FREE Car Insurance Comparison
Compare quotes from the top car insurance companies and save!
If you live in California, you may qualify for California’s good driver discount. Today, many drivers may be paying too much for their auto insurance because they are not taking advantage of the discount that is being offered.
What is a Good Driver Discount in California?
This is a discount that is written into California law thanks to Proposition 103. The law provides what is known as a good driver discount. It rewards drivers who have had a relatively clean driving record over a three-year period.
What does Proposition 103 Law Say?
Passed in 1988, Proposition 103 provided state-run regulations over the insurance industry in California. The proposition was passed because insurance rates were climbing steadily that made it more difficult for people to afford. When the law passed, it provided a consumer-oriented approach that helped to regulate insurance companies.
One of the provisions prevents insurance companies in the state of California from using credit ratings or scores in determining the price of the premiums. This means that other factors will assist in determining the premiums set by insurance companies which include, but are not limited to the following;
- Driving Record (bad driving record is a curse for low car insurance premium, read here)
- Where You Live
- Make & Model of Vehicle
- Why You Drive Your Car: For Commuting or Personal Use
Under the law, insurance companies were forced to cut their rates by 20%. Any new rate change had to be approved by the California Department of Insurance. Also, Proposition 103 created what is today known as the Good Driver Discount which is still in force. It is providing drivers with a substantial reduction in what they pay to insurance companies.
Mature Driver Discount Eligibility in California:
Under Proposition 103, drivers in California may qualify for the discount if they have been living in the state and have been licensed for a minimum of three years.
This means that those who received their California driver’s license less than three years ago are not eligible for receiving a discount. This includes teenage drivers who have received their first driver’s license and those from out of state who just moved to California.
How do I Qualify for this Discount?
You can be eligible for the Good Driver Discount in California, which provides for a 20% cut in your insurance rates. You have to be a licensed to drive for at least three years meet the following qualifications;
During the Past Three Years, You Have Not Done the Following:
- Added More than One Point to Your Driving Record
- You Have Not Been At-Fault in an Accident that Caused Injury or Death
- You Have Also Not Been to Traffic School More than Once
If you meet these qualifications, then you can apply for the California good driver discount. You will want to go to your insurance company first to see if you meet the requirements. They can take the proper action from there. This means that you can save upwards of 20% over the insurance premiums that you are paying today.
Additional Car Insurance Discounts in California:
When it comes to saving on car insurance, you may wish to consider these additional ways to get discounts on car insurance in California. They’re easier than you think.
- Price Comparison is the first method to use. Shop several car insurance companies before you buy. Get quotes on identical information from at least three auto insurance companies. Click here to compare rate online for free.
- Multi Car discounts will also help to lower your car insurance rates.
- Keep a Clean driving record. A clean driving record can save you a lot of money and get you huge discounts.
- Use your car for personal use only, if you are using it for work purposes or to go more than about 10 miles per day one way you’ll pay more.
- The location is also an important factor in calculating insurance. Check out different zip codes when you’re calculating your insurance and you’ll see a huge difference.
- Bundle your car insurance with your renters or homeowners insurance and you may get a discount.
- Check for your business and military discounts and you may save as well.
Following these tips to get discounts on your car insurance in California may save you a bundle.