Driver Class Saves Money
Kelly K. Spors
Mar 20, 2005
Looking to get a break on auto insurance? Just take a quick class to improve your driving.
To promote safer driving, about two-thirds of states require car insurers to offer reduced premiums to drivers who take a state-approved defensive-driving course. Discounts usually take 5% to 10% off your regular liability and collision (but not theft) premiums.
Louisiana and New York let all drivers get discounts for taking a course, but most states require discounts only for seniors or people over, say, 50. Some insurers offer discounts to drivers of all ages even when it's not mandated by law.
States have different rules for how the mandatory discounts work. In Florida, for instance, drivers 55 or older who take a six-hour course can save up to 10% a year on premiums for three years. Often the discounts can be renewed by taking a refresher course.
Generally, the driving courses -- hosted by outfits such as AARP or AAA -- cost less than $40, and can shave several hundred dollars in premiums over the course of several years. For instance, you could save $100 a year on a $1,000 annual premium, if your state offers a 10% discount. Some insurers may require that a driver keep a clean record to keep the discount.
The courses -- which don't require any actual driving -- usually cover topics such as observation skills, road rules and hazardous driving conditions. Those who successfully complete the course get a certificate that the insurer must receive as proof. Some courses can even be taken online, but make sure the program is approved in your state.
A possible bonus: Some states let drivers with traffic violations or speeding tickets get points taken off their record for taking a course.
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