The discount for good driving in California is 20% for residents who have had a valid driver's license (from any state) for the last 3 consecutive years, who have no more than 1 point on their driving record, and who have no serious driving convictions related to driving. If you live in California, did you know that you can get a 20% discount on your car insurance just for being a good driver? Many auto insurance companies promote the discount as a special benefit that only they offer, but it's not a unique feature. California's good driver discount, established by Proposition 103, was a direct response to a time when auto insurance rates were skyrocketing. It was great for auto insurance companies because they could charge what they wanted and charge what they wanted.
When the 1980s arrived, auto insurance premiums were rising three times faster than the average inflation rate. Car insurance became so expensive that more than a quarter of drivers on the road simply ran out of car insurance (today, by comparison, about 15% of California drivers are uninsured). This excess of uninsured drivers further increased costs for drivers who were insured. By 1988, Californians were fed up.
In November of that year, voters approved Proposition 103, a bill to reform the way the insurance industry charges its customers. Overnight, California went from being one of the least regulated states to one of the most regulated states for auto insurance. From the start, he stated that all insurers needed to reduce auto insurance rates by 20%. It also created an insurance commission, and if any insurance company wanted to increase its rates, it first had to argue it and get the approval of the insurance commissioner.
However, not all car insurance companies do this. In fact, the wording of Proposition 103 simply requires that auto insurance companies offer a discount, not that it be applied automatically. If you meet the requirements mentioned above to get the California good driver discount, it's worth calling your car insurance company and confirming that you're receiving the discount. To be eligible for the discount, you'll need to meet these four criteria every time you apply for car insurance or when your current car insurance is renewed.
California's good driver discount is supposed to be offered to anyone who qualifies, regardless of the auto insurance company you hire with. The most important thing to remember is that insurance rates, discounts, safe driving programs, and other factors vary by insurance provider, state, age, and many other factors. Make sure you meet the requirements for the good driver discount before notifying your insurance company that your driving experience abroad meets the California good driver discount criteria. D) An insurer may refuse to sell a discount policy for good drivers who insure a motorcycle, unless all of the named insured persons have obtained a license to drive a motorcycle for the previous three years.
C) The absence of prior auto insurance coverage, in and of itself, will not be a criterion for determining eligibility for a good driver discount policy or, in general, for the rates, premiums, or insurability of cars. Since newer vehicles typically have the latest in safety features, some insurance companies also offer discounts for driving a newer car. If you want to save money on your car insurance, the best thing to do is ask your insurance company for a list of the discounts they offer and compare several providers to get the best insurance rates possible.
