Safe drivers pay less for car insurance because they cost insurance companies less in payouts. This is why insurance companies often incentivize safe driving with discount programs. They go by various names, depending on your insurance carrier, but the basics are the same. They save you money, just for driving safely.
How Do They Know I am Driving Safely?
After signing up with your carrier, they will send you a telematics device. This is a beacon that you will place in your car, usually on the inside of your windshield behind the rearview mirror. It tracks your speed, how hard you stop, your driving style, and location. You will also download a mobile app, which works with the device to track your driving habits.
Location and Speed
They need to know your location to verify whether you are within the speed limit for that location or not. If you exceed the speed limit by 10 miles per hour or more, you will be flagged as driving too fast, and your discount will be reduced.
Do you turn sharply? Stop at the last minute? Accelerate like you are in a road race? You will want to eliminate those habits for your safe driver discount and your safety. Your goal is to have a smooth driving experience. Oh-and never use your cell phone while driving. The mobile app will know you have, and your safe driver rating will get dinged.
How Far Do You Drive?
You will see a nice discount if it is under 12,000/year, because the more you drive, the greater your chance of being in an accident. However, it is important to note that if you already receive a low-mileage discount and the beacon shows you driving more, you could lose your original discount when the premium is renewed.
Night driving and how many miles you drive each trip can also affect your rating because the more night driving you do and the more miles you drive, the greater your chance of being in an accident. Idle time is also a factor because it indicates being in congested traffic.
After Trip Reports
Once your trip is complete, the app will give you after-trip reports, letting you know how you can improve. For example, where did you drive too fast, and when did you brake too hard? This helps. Over time, this should help you improve.
When Does My Discount Kick In—And How Much Can I Save?
You will usually see your discount at the start of your next policy renewal. Based on your driving habits and your carrier’s program specifics, you could save from 5-40%!
Are You Interested in Saving Money on Your Car Insurance?
Talk to the independent insurance agents at Hermann Insurance Services. We can help you find the best policy for you and your family. Contact us today!