Good Driver Discounts
How To Make Your Auto Insurance Deductible Vanish
If you are looking for a good driver discount and other ways to save on auto insurance, you are in the right place. Some insurance companies offer vanishing or disappearing deductibles to drivers who have clean driving records. This perk deserves some exploration, so be sure to ask your insurance agent what it means and how it could it can help you manage your insurance costs.
Vanishing Deductible Example
The way it works is simple: when you go one year without an accident or traffic ticket, your insurance deductible is reduced. This is usually a set amount, up to a limit.
Let’s say you have a $1,000 deductible on your car insurance policy. You also have a disappearing deductible of $100 a year. If you go five years without an accident or traffic ticket, here’s what would happen:
- You have a credit of $500 towards your deductible ($100 per year over 5 years)
- If you are in an accident, $500 is your new deductible ($1000 - $500 = $500)
Most insurance companies do not automatically enroll you in a vanishing deductible plan, so if you are looking for this program, be sure to ask your agent.
Note that there are a few “catches” to be aware of. The disappearing deductible program is typically only available with more expensive plans. There is also usually an initial cost for enrollment into the program, and the fee can cost nearly as much the actual benefit.
For example, if your insurance plan has a vanishing deductible of $100 a year, and you pay a $5 monthly fee to be part of the vanishing deductible program, you will pay $60 a year to receive a $100 credit towards your deductible, a savings of only $40 overall.
Tips for Earning a Safe Driver Discount
There are many ways to find discounts to make your auto insurance affordable, including practicing safe driving habits and maintaining a good driving record. Driving infractions, including traffic violations and DUIs, place points on your driving record that can severely impact your auto insurance rates.
Here are some key things you can do to maintain a good driving record:
- Follow the speed limit and always reduce speed in construction zones
- Leave plenty of space between you and the driver ahead of you
- Never text while driving, and use a hands-free mobile phone
- Take a defensive driving course in your community and report it to your insurance agent
If you are a safe driver, you can be rewarded for it with a good driver discount. Ask your auto insurance agent about a safe driver insurance plan.
Safe Driver Discounts for Taking Driving Classes
In addition to vanishing deductibles, there are a number of discounts available for careful drivers and those willing to take extra measures to show they are sincere about safety. Taking an educational course on safe driving is one of them. These classes are usually provided at your local Department of Motor Vehicles office or at community colleges. Many insurance providers will reduce your premium after you successfully complete a safety course.
Discounts for Seniors
Safe driver discounts are available in many states for seniors who take special classes that promote safe driving practices for those over 50. Since many people in this age group and older have not taken any official driver training since they initially obtained their licenses, these classes offer an excellent opportunity to brush up skills. They can also offer tips to help those whose peripheral vision is not what it once was.
Discounts for Teens
Teen drivers have the highest accident rates compared to other age groups, so it is important that they understand the dangers they will face on the roads. If you have a teen driver who completes a driver’s education course, you may also be able to get a discount on your premium. In addition, high school students with good grades may be eligible for additional discounts on their car insurance.
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