How a good driving record can affect your auto insurance

By Compuquotes Team on March 27th, 2008

Auto Insurance

Auto insurance companies don't like having to pay out large sums for accidents. Even if the accidents isn't your fault, you can still see an increase in your auto insurance premium if you are involved in several accidents within a fairly short period of time. By having a good driving record and avoiding accidents and traffic infractions, you can not only avoid these increases but in many cases you can even end up paying less for your auto insurance coverage. To make things even better, you can also end up with a greatly reduced deductible and some additional perks that you auto insurance provider might have for good drivers.

Reduced premiums

Obviously, one of the important benefits of being a good driver is the fact that many auto insurance agencies will reduce the premium that you have to pay based on your driving record. Having no accidents or traffic infractions on your record will help you to get a low initial premium rate, and being a good driver after you've received your auto insurance policy will help to keep it low. Many insurance agencies offer discounts for each year that you go without any driving infractions, and these discounts can result in significant savings.

Accident forgiveness

In the event that you have been involved in accidents before, many auto insurance providers now offer accident forgiveness as well. Once you go a certain period of time without any accidents or moving violations, older accidents will be removed from your history and any premium increases that resulted from them can also be taken away. A number of auto insurance companies began implementing accident forgiveness because it wasn't fair that an accident or two early on could preclude an otherwise safe driver from rate reductions and other programs later on in the policy's life.

Reduced deductibles

Even more potentially important than reduced premiums and accident forgiveness is the recent trend for auto insurance providers to offer reduced deductibles if you have a good driving record. This means that if you are unfortunately caught up in an accident that the amount that you must pay out-of-pocket will be reduced from what it was when you signed up for your policy. With certain auto insurance providers you can actually get rid of your deductible altogether after several years with no accidents or driving infractions reported on your policy. While it might not seem that useful at first, if you are even involved in an accident you'll come to appreciate being able to get the needed repairs made to your vehicle without having to pay for at least a portion of the cost yourself.

Additional perks

In an effort to draw in additional customers, many auto insurance providers have started instituting a variety of different perks that they offer to safe drivers. These perks may include discount cards or similar programs to let you receive a discount at certain restaurants, hotels, and other leisure destinations, cash back programs that pay you for each year that you're not involved in an accident or any traffic problems, or similar perks programs. The specific details of these will obviously vary from one insurance provider to the next, so be sure to check with your auto insurance company to see if they offer any similar programs.

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