Do You Qualify for California’s Mandatory Good Driver Discount?
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Ron Trumbo
Insurance Editor
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As you shop for cheap auto insurance in California, be aware that being a “good driver” in California is not simply passé marketing spin, but rather a provision of California’s Proposition 103. Passed into law over 20 years ago, Prop 103 achieves many good things for Californians — especially good drivers.
California Good Driver Discount
California requires car insurance companies to offer a 20% good driver discount to California drivers who have had:
1. A California Drivers license for the last 3 years,
2. No more than one moving violation (1 driving record point) over the same 3 years, and
3. Not been involved in an accident where they were responsible for more than $500 in property or medical damage.
So what does a 20% good driver discount mean? The means that when you compare different insurance quotes from California auto insurance companies, the insurance company must reduce its California car insurance rates by at least 20% of what you would have otherwise been charged for the same coverage, without the good driver status. Interestingly, Prop. 103 holds that insurance companies can not refuse to accept your business if you qualify as a good driver in California. For specific regulations, please visit the California Department of Insurance.
Good Driver Discounts and California’s Lowest Auto Insurance Rates
A 20% auto insurance discount is relative to the original price of an auto insurance policy. Car insurance rates are always changing in California depending on the insurance company, where you live, what you drive, and other drivers on your insurance policy. It is recommended that you compare at least 5 different quotes from 5 different insurance agents to find the lowest cost for you individually. As you have conversations with California’s best insurance agents, make sure you ask: “Does this include the California good driver discount?” |
