Safe Driving Tips to Lower Your Insurance Costs
Driving safely doesn’t just help you get to your destination in one piece – it also affects your car insurance costs. Safe driving habits like limiting how often you’re on the road at night, not using your phone while driving, and obeying speed limits can pay off over the long run.
Here are tips on how to drive more carefully, along with a rundown of the auto insurance discounts and lower premiums you’ll enjoy from being safer at the wheel.
The benefits of safe driving
Here’s more on how being more judicious when you drive can improve both your finances and your safety and well-being.
Lower insurance rates
The premiums for your car insurance policy are based on factors that include your age and gender, location, and the make and model of your car. But, beyond those characteristics, your driving record plays a substantial role in determining how much you pay for car insurance.
A clean driving record – meaning you don’t have a history of accidents, speeding tickets or other driving infractions – could qualify you for lower monthly or annual premiums.
Reduce risk of costly claims
When you obey speed limits and avoid distractions, you’re less likely to be in an accident – and so less likely to file a claim against your insurance. Not filing claims saves you money in several ways:
- No out-of-pocket costs: When you file a claim, the insurance company only pays for the repairs or damages after you reach the deductible you’ve selected for the policy. You have to pay that deductible – which can range from the hundreds to the low thousands of dollars – out of your own pocket.
- No price increases: After an at-fault accident, the insurance company is likely to view you as a higher-risk driver. Consequently, unless you’re eligible for an accident forgiveness perk from your insurer, your rates may increase, at least for a few years.
Less chance of serious injuries
Accidents can, of course, cause physical harm as well as financial damage. If the crash results in serious injuries to you, your passengers or the occupants of the other vehicle, you could be responsible for medical bills and other related expenses. And, beyond the financial toll, there’s the emotional fallout from having caused devastating harm to others.
Driving safely protects you and your passengers (and other drivers on the road) from injuries and disruption to their lives.
Ways to become a safer driver
For most people, driving safely doesn’t require drastic changes to your habits. It’s usually enough to focus on your driving more intentionally and to be more aware of your surroundings. Here are a few ways to up your game at the wheel:
Don’t drive distracted
Distracted driving is when another activity causes you to stop paying attention to the road. The distraction can be talking to a child in the backseat, entering information into your on-board GPS or fiddling with the volume level on your sound system.
But, one of the most common distractions is your phone, and using your phone while driving can have serious consequences. According to the National Safety Council, approximately 12% of fatal accidents involve the use of phones.
Contrary to popular opinion, using your phone in hands-free mode is not safer than regular use; indeed, it may even be more distracting, according to the National Safety Council.
Commit to ignoring your phone while driving. When you get in the car, set up the “do not disturb” feature to mute text or call alerts. Or, if the temptation to check your phone is too strong, stash it in your trunk before you start your trip so you can’t reach it while driving.
Obey traffic rules
You’re driving home from work, exhausted and anxious to put your feet up, so you push your car beyond the speed limit to speed up the drive. While speeding may not seem like a big deal, excess speed increases the likelihood of getting into an accident – and of significant injuries and property damage if you do have a crash.
Obey speed limits, pay attention to lights and road signs, and come to a complete stop at stop signs to reduce the risk of an accident. Traffic violations could also affect your insurance premiums, since driving infractions are among the data insurance companies will consider when it’s time to renew your policy.
Stay well-rested (and sober)
Driving tired can be nearly as risky as driving under the influence. Fatigue lengthens reaction times and impairs vision; your focus may not be as sharp, which increases the risk of an accident. If you feel yourself becoming drowsy, pull over at a safe location for a cat nap so you only drive when you’re alert.
Getting behind the wheel after too many drinks is illegal. The consequences could include conviction for driving under the influence (DUI), with penalties that can include a loss of your license. A hike in your car insurance rate is also likely, and you could even lose your policy if you’re a repeat offender.
Drunk driving also puts you at risk for accidents and injuries, of course. If you’ve been drinking, use a rideshare app or ask a friend to drive you home to be safe.
Avoid late-night driving
Driving into the wee hours can be dangerous. Your visibility may be compromised in the dark, your depth perception may be off due to headlights, and there’s also a higher risk of other drivers driving erratically or under the influence. If you can, avoid driving late at night, and opt to stick to the daytime hours or early evenings. If you must drive in the dark, further minimize distractions and make sure you have annual vision exams.
Take defensive driving courses
Defensive driving courses can be online or in person, and they teach you how to anticipate and react to other drivers and potential road hazards. You learn how to identify aggressive or reckless drivers, handle slick roads, and avoid common mistakes that lead to accidents. As an added perk, many insurance companies give drivers a discount for completing an approved course.
Discounts you can earn as a safe driver
Driving safely can help you save on deductibles and reduce the risk of a claim, but you may also qualify for one or more of the following discounts:
Accident-free discount
If you’ve been a policyholder and haven’t been in an accident or filed a claim for a specific period, such as three years, you may be eligible for this discount.
Defensive driving discount
If you complete an approved defensive driving course, your insurer may apply a discount to your policy.
Usage-based insurance (UBI) discount
If you sign up for a telematics or UBI policy, such as StreetSmart by Amica™, the insurer will track your driving through a device or mobile app. You can qualify for a discount just for signing up, but you could potentially save even more by driving safely. (Another benefit: Some insurers’ programs use the results of the monitoring – of how sharply you are cornering or braking, as examples – to provide constructive feedback on your driving behavior, to help you drive more safely.)
Maintaining safe driving habits
Driving safely is more than just a good habit; it can be an effective way to save money on car insurance. The more responsibly you drive, the less likely you are to be in an accident or have a costly claim, so you’ll pay less for coverage.
The next time you’re tempted to go over the speed limit or breeze through that yellow light, remember that driving safely protects both you and your wallet.
This story was created in partnership with Money.com.
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