How to Get the California Good Driver Discount and Save on Your Insurance

February 16, 2017
In order to attract consumers in an industry that is highly competitive, insurance companies have come up with various discount offers that give better rates to some types of motorists. There are offers for military veterans, students, electric car owners and people insuring multiple vehicles through the same company.
However, as far as California is concerned, there is one auto insurance discount that just can’t be beat. It’s called the “Good Driver Discount.”What Is the California Good Driver Discount All About?

In 1988, various changes were made to insurance-related regulations in California. One of them was Proposition 103, which was voted into law and is what created the Good Driver Discount. Because of it, all car insurers doing business in California are required to give a 20% discount to policyholders who qualify for it.

What Are the Requirements?

The most important rule is that to qualify for the California Good Driver Discount, you must have held a license to drive a motor vehicle for at least the past three years. Licenses issued by all states and Canadian provinces qualify. During that three year period, you must have avoided the following:

  • Being found at-fault for any traffic accident (51% of higher responsibility).
  • Attended traffic school for traffic law violations more than once.
  • Received over one demerit point on your driving record.

If you’re looking for motorcycle coverage, keep in mind that in order to be eligible for the California Good Driver Discount, your license must have had a motorcycle endorsement for the past three years. A license to drive an ordinary passenger car isn’t enough to earn you a mandatory discount for motorcycle coverage. However, you may be eligible for other discounts provided by the insurer, especially if you already have a car insured with them.