Driving habits that insurance companies prefer

Did you know that insurance providers are always looking for applicants with responsible behavior behind the wheel? Well, that’s because by adopting good driving habits, not only do drivers improve their safety, but by doing so they benefit from low premium charges.

This article is dedicated to good driving habits that car insurance companies prefer and how they positively impact a car insurance applicant's insurance rate.

Importance of good driving habits

It is a known fact that insurance companies, be it auto, life, or personal, base the premium cost on the risk associated with the insured person. In the case of auto insurance, good driving habits significantly reduce the likelihood of accidents, which in turn lowers the risk to insurers.

Note, that demonstrating responsible driving behavior consistently will surely lead to favorable insurance rates and terms.

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Good driving habits a driver must inculcate

• Opting for safe driving habits
• Avoid bad driving habits
• Maintain clean driving record
• Regular vehicle maintenance
• Using telematics & monitoring systems
• Adapting to weather & road conditions
• Enhancing driving skills
• Using tech for safe driving
• Building a strong relationship with the insurer

Safe driving habits

The practice of safe driving habits is the cornerstone of low premium, thus making it essential for every driver to learn and practice them regularly. Part of the list are -

Defensive driving

Defensive driving technique is a protective approach that involves anticipating potential risks and hazards, thus making a safe, well-informed decision. This can be done via the following practices -

• Keeping a safe distance from other vehicles
• Avoiding distractions, such as mobile phones
• Being aware of surroundings and other drivers' actions
• Adapting to road and weather conditions

Adhering to speed limits

One of the major causes of road accidents around the world is speeding. So, adhering to the posted speed limits will not only keep you and others on the road safe but also signal the insurer that you are a responsible driver.

Proper usage of turn signals

When a driver uses a turn signal appropriately, it indicates their clear intention to other drivers on the road; thus reducing the risk of collision. Also, this habit will help maintain a clean driving record (which the insurer will love).

Avoiding bad driving habits

A driver needs to avoid a few driving habits completely for their and others' safety on the road. This will help avoid unnecessary accidents and rifts.

Distracted driving

Distracted driving is one of the leading causes of accidents. This includes using a mobile phone, eating, or adjusting the radio while driving. Staying focused on the road is essential for safety.

Aggressive driving

Tailgating, weaving through traffic, and road rage are all signs of aggressive driving and are seen as red flags by insurance companies. These habits increase the risk of accidents and can lead to higher premiums.

Driving under influence

Driving under the influence of alcohol or drugs is not only illegal but also extremely dangerous. Note, that a Driving Under Influence (DUI) conviction can lead to significantly higher insurance rates or even policy cancellation.

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Maintaining a clean driving record

A neat and clean driving record is loved by insurance companies and brings in a lot of advantages for the driver.

Accident-free driving

An accident-free driving record is one of the most important factors in keeping insurance rates low. Safe driving habits help in maintaining such a record.

Avoiding traffic violation

Speeding tickets, running red lights, and other traffic violations can result in higher premiums. Note, that following traffic laws is essential for maintaining a clean record.

Timely reporting claims

When an accident occurs, timely and honest reporting of claims is a must as it can positively influence your relationship with your insurer.

Regular vehicle maintenance

Practicing regular vehicle maintenance is not only beneficial for the car but for the owner as well, as it will make sure the car runs smoothly and gets the best premium rates.

Routine inspections

Regular vehicle inspections ensure that your car is in good working condition, reducing the likelihood of breakdowns or accidents caused by mechanical failure.

Tyre maintenance

A driver should make it a habit to regularly check tyre pressure and tread depth. Also, properly inflated and well-maintained tires improve vehicle handling and safety.

Brake system check

A well-maintained brake system is crucial for safety. Therefore, make sure to regular checks and timely replacements of brake pads and fluid are essential.

Use telematics and monitoring systems

Telematic systems combine telecommunications and informatics, thus allowing for remote monitoring and control of the vehicle. The system utilises GPS and sensors to collect and transmit data about the vehicle (location, speed, and performance) to the source. In the insurance industry, this system is used to collect policyholder’s mileage and driving habit information.

Usage-based insurance

Usage-based insurance (UBI) programs calculate premiums based on actual driving behaviour rather than estimates. This can be beneficial for safe drivers who can prove their low-risk habits.

Insurance telematics programs

Many insurance providers in the Philippines offer telematics programs that monitor driving habits through a device installed in your car. Safe driving behaviors tracked by these devices can lead to discounts.

Adapting to road & weather conditions

A driver needs to adapt to the changing road and weather conditions, as this will ensure drivers' and others' safety on the road.

Weather awareness

A driver needs to adjust his/her driving behavior as per the weather conditions. Make sure to slow down the vehicle during rain, fog, and snow. Also, make sure to maintain a safe distance from other vehicles on the road.

Night driving protection

Night-time driving requires extra caution. A car owner must ensure that the car’s headlights are in good working condition and always stay alert for pedestrians and animals.

Navigating construction zones

Heightened awareness and low speed are a must for a driver driving through construction zones. Make sure to follow posted signs and be prepared for sudden stops.

Enhance your driving skills

When a driver works on evolving his or her driving skills over time, the chances of getting involved in an accident or any other road mishap are reduced significantly. Here's how one can enhance his/her driving skills.

Advanced driving courses

Enrolling in advanced driving courses can improve your skills and demonstrate to insurers your commitment to safe driving.

First aid training

Being trained in first aid can be beneficial in case of accidents. Some insurance companies offer discounts for drivers with first aid certification.

Defensive driving classes

Defensive driving classes not only enhance your driving skills but may also qualify you for insurance discounts.

Using tech for safe driving

It is a smart move by a driver to opt for advanced technologies that’ll help drive the car safely. Some of the few car techs are -

GPS & navigation system

GPS and navigation systems in cars help drivers find the safest and most efficient routes, reducing the risk of getting lost and encountering hazards.

Lane Departure Warning system

Lane departure warning systems alert you if you unintentionally drift out of your lane, helping prevent accidents.

Back camera and parking sensors

These technologies aid in safe parking and reversing, reducing the risk of minor accidents and damage.

Building a strong relationship with the insurer

Last but not least, it is essential for a car owner to build a good repo with the insurance provider, this will benefit you in several ways.

Regularly review the policy

Regularly reviewing your insurance policy ensures that you have adequate coverage and can identify opportunities for discounts.

Communicate changes

Do inform the insurer of any changes in your driving habits or circumstances, such as a shorter commute or additional safety features in your vehicle.

Loyalty programs

Many insurers offer loyalty programs that reward long-term customers with discounts and benefits.

Bottom line

Good driving habits are beneficial not only for the car owner’s safety but also for others on the road. In addition, it will lower your insurance premium. Yes, insurance companies often reward drivers who demonstrate responsible behavior behind the wheel, leading to lower premiums and better coverage. So, just by practicing defensive driving, maintaining your vehicle, avoiding distractions, and continuously improving your driving skills, you can enjoy the financial benefits of being a safe driver.

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