Short answer: California law requires auto insurers to sell a Good Driver Discount policy to anyone who qualifies, priced at least 20% below the rate they'd otherwise pay for the same coverage. You generally qualify if you've been licensed for the past three years, have no more than one violation point in that time, and weren't principally at fault in an accident that injured or killed someone.
What the law says
Proposition 103 put the discount in Insurance Code section 1861.02. It says anyone who meets the good driver criteria can buy a Good Driver Discount policy "from the insurer of his or her choice," that an insurer "shall not refuse to offer and sell" one to a qualified person, and that the rate must be at least 20% below what that person would otherwise be charged for the same coverage.
Who counts as a good driver
Section 1861.025 sets the test. You must:
- Have been licensed to drive for the previous three years
- Have no more than one violation point in those three years
- Not have been the driver principally at fault in an accident that caused injury or death in those three years
- Not have a DUI-related conviction in the past 10 years
A department regulation clarifies that the three years of licensing can be from any jurisdiction. If most of your experience is from outside the U.S. or Canada, the statute presumes you qualify after 18 months of U.S. or Canadian licensing that meets the same criteria.
Things people miss
- No prior insurance isn't disqualifying. Section 1861.02(c) says not having had insurance before can't, by itself, be used to deny the discount.
- A household member's record. Under 10 CCR 2632.12, if another person's record is what keeps you from qualifying, you can buy a good driver policy that excludes that person from coverage.
- Timing. A 2023 Department of Insurance bulletin reminds insurers that they have 15 business days after a completed application to bind coverage for a good driver, and warns against application hurdles that discourage good drivers.
- Motorcycles. An insurer can refuse a good driver motorcycle policy unless every named insured has been licensed to ride for three years.
Bottom line
If your record is clean, ask any quote you get whether it's a Good Driver Discount policy. If an insurer won't sell you one and you think you qualify, you can contact the California Department of Insurance. Low-income drivers can also check California Low Cost Auto Insurance.
Questions? Contact Alishahi Insurance or call (877) 711-4545.
Frequently asked questions
How much is the California Good Driver Discount?
By law the policy must be at least 20% below the rate you'd otherwise be charged for the same coverage.
Who qualifies for the Good Driver Discount in California?
Drivers licensed for the past three years with no more than one violation point and no principally at-fault injury or fatal accident in that time, and no DUI conviction in the past 10 years.
Can an insurer refuse to sell me a Good Driver Discount policy?
No. Insurance Code 1861.02 says an insurer shall not refuse to offer and sell one to a person who qualifies.
Does having no prior insurance disqualify me?
No. Lack of prior coverage can't by itself be used to deny the discount.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.