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How Do Safe Driving Insurance Discounts Work?

Monday, April 5th, 2021

You’re a safe driver, right? You do your job to follow the rules of the road and keep you and the other people around you as safe as possible. But what if you could get rewarded for being the safe driver that you are?

We’re here to tell you it’s certainly possible when it comes to safe driving and receiving insurance discounts on car insurance in Fargo-Moorhead. Here’s everything you need to know!

Driving History is a Big Factor

It’s pretty easy to take a guess at how insurance companies work. They get policy holders to pay premiums and then invest that money with the intention the revenue it generates is greater than the amounts they will have to pay on claims. When this doesn’t happen, they end up losing money on the deal – hence the reason insurance can be risky!

Because of this, insurance companies will look at driving history as a part of the policies they offer. Drivers with proof of safe driving on their record will always have a lower insurance rate.

It Take a Special Formula

So how is it all calculated? Most insurance companies will use a formula that looks at important factors such as your age, gender, and driving history. Your driving history includes the number of accidents shown on your record as well as the number of points shown on your license.

The insurance company will look at how serious each accident was and whether or not you made a claim in order to determine your rate. No accidents mean the lowest rate possible!

Maintenance is Key

You might have high insurance rates now, but it doesn’t mean you’re always going to have a high rate. As time goes on and your record gets cleared, you’ll become eligible for a lower insurance rate. The key is maintaining a clean record over time and always remembering that safety comes first when you’re on the road.Do you have a safe driving record and have questions about the potential discounts you could receive from it? We’re here to help. Contact us today!