Auto Insurance Discounts

DESCRIPTION OF AVAILABLE AUTOMOBILE PREMIUM DISCOUNTS

The Interinsurance Exchange of the Automobile club offers the following automobile insurance premium discounts to qualifying policyholders.  Some discounts are applied automatically based on information we have on our records.  Other discounts must be requested and some require certification.  All available discounts that currently apply to your automobile policy are indicated by an "X" in the applicable checkbox shown on the "Premium discounts Applied to Your Policy" page of your declarations.

GOOD DRIVER DISCOUNT

Proposition 103 (the voter-approved measure that forms the basis of auto insurance rating and underwriting rules for California insurers) provides a 20% premium discount on all coverage lines for "Good Drivers."  The following is intended to be a brief summary of the Good Driver qualification criteria.  It does not include all the rules.  In most cases, an individual qualifies as a Good Driver if he/she:

• Has been continuously licensed to drive for 3 years; and
• Has not had a driving license suspension, cancellation or revocation in the last 3 years, and
• has not been convicted of an alcohol or drug-related traffic violation in the last 7 years; and
• has not been convicted of a "major" or "serious" traffic violation (e.g., reckless driving, speed contest, hit-and-run, driving in excess of 100 m.p.h., etc.) in the last 3 years; and
• has not been principally at fault in an accident resulting in bodily injury (with total damages in excess of $500) in the last 3 years; and
• has no more than one of the following in the last 3 years:
• "minor" traffic conviction (e.g., driving too fast  for conditions, improper lane change, following too closely, etc.); OR
• principally at-fault accident resulting in damage to property only (in excess of $500)

SELECT PROFESSIONALS AND GROUPS DISCOUNT PROGRAM

This discount program reduces rates for all vehicles (except trailers and mobile homes) on qualifying policies.  We extend this discount to policyholders who meet the criteria for ENGINEERS, SCIENTISTS, EDUCTATROS, LAWYERS, CA. MEDICAL ASSOCIATION members and other selected groups.  The discount ranges from approximately 4.5% up to 14%. 

NEW DRIVER DISCOUNT

This discount reduces rates by 10% for qualifying drivers with less than 3 years of driving experience on all lines of coverage carried on the vehicle(s) they principally operate.  To qualify, drivers must meet certain driving record requirements and sign a "Responsible Driver Pledge" form.

DRIVING COURSE DISCOUNT

Primary and additional qualifying drivers who successfully complete a driving training course that has been pre-approved by the Interinsurance Exchange are eligible for a premium discount of up to 4.5% on all lines of coverage on the vehicle(s) they primarily operate.  Currently the Auto Club Driving School "Licensed to Learn" program, designed for novice drivers, is the only course approved by the Interinsurance Exchange for this discount.  For additional details about the course, please call 1-877-428-2277.

To qualify for the discount, the driver must meet ALL of the following requirements:

• Provide us with a "Licensed to Learn" course completion certificate
• Have none of the following during the 36 months immediately preceding the date the discount is added to the policy:
• A principally (51% or more) at-fault accident resulting in death or bodily injury (with total damages in excess of $500); OR
• A traffic conviction for which the California Department of Motor Vehicles (DMV) assesses two violation points; AND
• Have no more than one of the following during the 36 months immediately preceding the date the discount is added to the policy:

• A principally (51% or more) at-fault accident resulting in damage to property only (in excess of $500); OR
• A traffic conviction for which the California DMV assesses one violation point; AND

• Have no principally at-fault accident or traffic conviction after the course certification completion date.  (Any traffic conviction or principally at-fault accident occurring after the most recent certification completion date disqualifies a driver from receiving this discount and will cause an existing Driving Course Discount to be eliminated at the next policy renewal.)

Depending on the certification completion date, the discount may apply for up to three consecutive policy periods.

MULTI-POLICY DISCOUNT

This discount is automatically applied to all lines of coverage on an Exchange auto insurance policy when the named insured (or resident spouse) also has an existing Exchange homeowners, condominium owners, renters or watercraft insurance policy.  You can save up to the following on your auto policy:

• Up to 7% with a qualifying homeowners policy; or
• up to 2.5% with a qualifying condo policy; or
• up to 5.5% with a qualifying renters policy; or
• up to 2% with a qualifying watercraft policy.  (Exchange watercraft policies include boats 26 feet, 5 inches or less in length and Jet Skis/Sea-Doos.)

If you have an Exchange watercraft policy and an Exchange homeowners, condo owners or renters policy, you'll receive both discounts on your auto premium.  Plus, with an Exchange auto policy you can save up to 20% on your qualifying homeowners, condo or renters policy with the Multi-Policy Discount.  The discount will be discontinued if the qualifying auto, homeowners or watercraft policy is cancelled or not renewed.

CLAIMS COST REDUCTION DISCOUNT

When the named insured (or resident spouse) completes our Claims Cost Reduction Course, a discount of up to 1.8% will be applied to Bodily Injury Liability, Property Damage Liability and Uninsured Motorist Coverage premiums on all qualifying insured vehicles.  This course is available in an easy-to-read guide and on our web site at www.aaa-calif.com/insurance/auto.  The guide includes useful information about what to do in the event of an accident.  What you learn will help expedite the settlement of a future claim and will also help you protect your financial and legal interests.

If you do not already have this discount, please complete, sign and return the Claims Cost Reduction Course quiz.  You can request an additional incentive when you apply for this discount through our web site.

MULTI-VEHICLE DISCOUNT

For most policies covering two or more qualifying vehicles insured for Bodily Injury Coverage, a discount of up to 25% will automatically apply to all lines of coverage on qualifying vehicles.  Qualifying vehicles include private passenger autos, SUV's, most pick-ups and vans, motor homes and dune buggies.  (The actual discount percentage will vary by coverage and ratio of vehicles to drivers.) The following vehicles do not qualify for the Multi-Vehicle Discount: trailers, motorcycles (and other two-wheeled vehicles), golf carts, snowmobiles, and antique cars (not including classic cars).

GOOD STUDENT DISCOUNT

Full-time high school, college or university students (minimum of 12 units per term) will less than nine years of driving experience who have attained a current or cumulative grade point average (GPA) of at least 3.0 are eligible for a discount of up to 16% on all lines of coverage carried on the vehicles(s) on which they are rated as primary or additional drivers.  Current GPA takes into account only coursework completed in the most recent academic term; cumulative GPA takes into account all coursework completed at the student's current academic institution.  Acceptable certification of full0time student status and grade point average must be submitted to us to obtain the discount.  Recertification is required each year before policy renewal.

MATURE DRIVER DISCOUNT

Drivers age 55 or over who successfully complete a Mature Driver Improvement Course approved by the California department of Motor Vehicles during the past three years may be eligible for a discount of up to 1.8% on all lines of coverage cared on the vehicle(s) they primarily operate.  To obtain the discount, drivers must furnish us with a completion certificate from an approved course provider.  The Automobile Club of Southern California offers a mature Driver Course as one of its many member services.

ANTI-THEFT DEVICE DISCOUNT

Most types of vehicles equipped with permanently installed select anti-theft devices (i.e., burglar alarms or fuel/ignition shut-off devices) may qualify for a discount of up to 9% on Comprehensive Coverage.  Some electronic vehicle locators (such as LoJack) may qualify for a discount of up to 18% for Comprehensive Coverage.  If a vehicle is equipped with more than one qualifying device, this discount will apply only one and will be based on the device eligible for the higher discount.  When you first insure a vehicle, we will ask you about anti-theft devices.  If you add a device to a vehicle that is already on the policy, please let us know of your eligibility for the discount by calling 1-800-924-6141.

AIR BAG DISCOUNT

Most vehicles equipped with one or more air bags qualify for a discount of up to 8.5% on Medical Payments and Uninsured motorist Bodily Injury Coverage.  When you first insure a vehicle, we will ask you about air bags.  The discount amount is the same regardless of the number of air bags in the vehicle.

GARAGE PARKING DISCOUNT