How Much Can Good Drivers Save on Auto Insurance?

Experience can only be gained with time, and when it comes to driving, the more you have, the better it is.

For those who have a lengthy and immaculate driving record, that could mean sizable savings on your auto insurance premiums. Many car insurance companies offer “good driver discounts”, as drivers spend more time on the road or hit significant life milestones.

Every insurance provider is different, but generally, drivers can see their premiums start to drop three to five years after they get their driver’s licence. It applies to both young and old drivers, depending on the amount of experience they have. However, there are a few stipulations. Drivers are typically required to be accident-free, violation-free, and claims-free during to see a reduction.

Nevertheless, one way to potentially lower your premium discount may be to enrol in a usage-based insurance program with your insurer.

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What Is Usage-Based Insurance?

UBI, sometimes referred to as telematics is software that tracks how fast and how far you are driving, accelerating, braking, cornering, and what times you are typically on the road. Some can even track if you are distracted while driving. The programs are typically accessed through a mobile app. Each insurance provider will have a different name for their respective UBI programs; however, they work the same way.

They will give you a rating or score at the end of the data collection period, which may result in up to 25% off your insurance premiums upon renewal. Many insurers will also immediately provide you with a 10% discount for enrolling in their UBI programs.

That means practiced drivers as well as less experienced ones may be able to save based on how they drive, rather than how long they have been driving. The information insurers collect can’t be used against you, meaning your premiums won’t go up even if you don’t qualify for a discount.

UBI May Help You Save on Your Car Insurance

UBI is great, but it may not be for everyone. Talk to your insurance provider or check out reviews online to see how people liked their experience with the technology. Enrolling in a UBI program may help you save money on your annual auto insurance premium.

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