What Is A Safe Driver Plan?

When looking for a car insurance quote, you have to consider the type of coverage you want and the limits of your deductibles. It's also helpful to consider any possible ways to get your premiums lowered, and safe driver plans can be very helpful for many drivers. They're often either mandated by states or available as a part of an insurance company's regular policy offerings. Here's a look at how a safe driver plan could help your premiums.

Safe driver plans operate simply--they're designed to reward good drivers and punish bad drivers through insurance premiums. In most plans, "points" are assigned to drivers for bad driving habits, such as auto accidents caused by the policy owner and traffic violations. The more points a policy holder has, the higher his or her car insurance rates will be. A safe driver plan may also be called a "merit-rating plan" by some companies, and they usually look at driving history for the past two or three years of a driver's record (therefore allowing bad drivers a chance to improve and take advantage of the lower car insurance rates after that period of time). In some communities, insurance companies are encouraged to offer some sort of merit-based plan to keep roads safer.

If you're looking at car insurance quotes and you've got a fairly solid driving record, it may be to your advantage to pay special attention to any safe driver plans, as premiums are discounted quite heavily for this select group. Of course, you'll want to opt out if your record has a few blemishes, at least until you've let a few years pass and those blemishes are wiped free from your record. In the mean time, look for non-merit-based insurance plans (which will be costlier), or consider taking a defensive driving course, which many insurance companies will incorporate into their merit-rating plan to allow them to offer a fair premium. Look up your driving history and bring it to an insurance agent to see what kind of benefits or penalties you might expect.

A safe driver plan is a great way to encourage good driving habits, and can be an especially good idea if there are multiple drivers on your own plan. Discuss your options with an insurance agent to make sure that you're getting the best benefits possible from your good driving habits. Taking advantage of a merit-rating plan is simply good sense, especially when you're looking for new insurance or buying a new car. No driver should ever pass up an opportunity to lower car insurance premiums without lowering coverage.

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