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Safe Driving Will Save You Money

Whenever you head out to go somewhere, there's a pretty good chance someone will tell you to "drive safely". It's a common turn of phrase, and one of well-wishing. But it's also a phrase that, if adhered to, could easily save you hundreds or even thousands of dollars a year.

That's a big chunk of change in exchange for simply doing what you would most likely be doing already - trying to avoid accidents and speeding tickets.

For starters, there are plenty of obvious advantages to driving safely: avoidance of accidents means steering clear of damage to your vehicle, physical injury to yourself or others, missed work, etc. But perhaps a less obvious but still very tangible advantage is a significantly reduced insurance rate.

So next time someone tells you to drive safely, tell them you plan on it. It will give them piece of mind, and it will remind you that as long as you continue to do so, you'll reap the rewards in safe driving discounts.

Most drivers know either by first-hand experience or through word of mouth that an accident, a ticket or various other infractions can result in an increased insurance premium. They also know that avoiding those things will mean a consistently low premium.

But there's one way that safe driving can actually help you to lower how much you pay for your insurance each month. Most insurance companies today offer safe driver discounts to policyholders who have maintained a clean driving record for an extended period of time.

It works like this: the insured's account is reviewed on regular intervals and, if there are no outstanding issues that would otherwise cause the premium to rise, discounts are added and the premium is lowered by a few percentage points. This is usually done every six months, at the renewal of the policy, and as long as the driver maintains a clear record, the discounts will continue to add up to a maximum amount determined by the carrier. That amount typically falls around 20% but can be up to 50% off a regular premium.