Insurance 101: Automobile Insurance - Defensive Driving Discounts

Did you know that taking a defensive driving course can make you eligible for a credit on your automobile insurance policy? The amount of credit varies from state to state, but the general idea remains the same - the safer the driver, the less he or she pays for automobile insurance.

Defensive driving courses are generally offered through motor vehicle and affiliated agencies. If the course is not provided through the state motor vehicle agency, it should be approved by the state motor vehicle agency. We commonly hear of people taking defensive driving courses when they are older or when the court orders them due to bad driving records. Defensive driving courses are offered to the general public, regardless of age or driving record.

Once you have taken a defensive driving course, you should call your agent or insurance company to notify them that you have taken the course. They will ask you for a copy of the certificate showing you completed the course and the discount will be applied to the liability insurance, personal injury protection insurance, and collision insurance portions of your policy. If there are multiple drivers and vehicles on your policy, the discount will only be applied to the vehicle driven by the person who took the course.

The discount can vary depending on your state's regulations and your insurance company's rules. For example, in New Jersey, the discount is 5% off of the above referenced insurance coverage, but you may not apply for the credit if you have more than 4 points on your driver's license.

Your insurance company may also have rules about when the discount can be added to your policy. Most defensive driving course certificates are good for a period of three years. The insurance company may not let you add the discount in the middle of the policy term - they may make you wait until the next insurance renewal to add the credit. If that is the case, you will still receive the credit for three years from the date the credit is added to the policy, so you don't really lose out on the time you are eligible for the discount.