New York’s Department of Motor Vehicles says its Point and Insurance Reduction Program can “reduce the base rate of your auto and motorcycle insurance premiums by 10% each year for three years.” The classroom course behind that discount runs 320 minutes.
Pennsylvania, for its part, says drivers 55 and older are entitled to “at least a 5% discount” on vehicle insurance after finishing a mature driver course.
What the two states spell out
Under the New York program, drivers must retake the course every 36 months to keep the reduction. The course does not erase a violation, conviction or points from a driving record.
New York says any insured driver who is the principal operator and completes an approved course will receive the 10% reduction, and it applies from the completion date if the certificate reaches the insurer within 90 days.
The Pennsylvania course is open at 55, and keeping the discount means taking a refresher course every three years. Fees are “moderate, but vary with each organization,” according to the state, which also tells drivers to check with their insurer for program specifics.
What it could be worth
Take a policy that costs $2,000 a year. A 5% discount on the full premium is $100 a year, and a 10% discount is $200.
New York applies its reduction to the base rate of liability and collision premiums rather than the whole bill, so the real figure there will be smaller. If the premium stayed flat, three years of discount would top out around $300 at 5% or $600 at 10%, before subtracting what the course cost.
Real policies move, and so do course fees, so the arithmetic is a starting point, not a forecast.
The AARP Smart Driver course is online and self-paced, and runs four, six or eight hours depending on state requirements. AARP says completion “may” make you eligible for an auto insurance discount, adds that other restrictions may apply, and gives members up to 10% off the course price. The course is designed for drivers 50 and older, though anyone can take it.
Compare once the discount applies
If you are already thinking about shopping your policy, a course discount is one more variable to run through a quote comparison.
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Bundled policies can change the math too, and comparing bundled and separate policies side by side shows which route costs less.
Questions to ask before you enroll
- Does my insurer honor this course in my state, and which providers’ certificates does it accept?
- How much does the discount reduce the premium, and how long does it last?
- Does every driver on the policy qualify, or only the principal operator?
- Has my mileage changed? Retirees who drive less may still pay a premium based on a commute.
Ask the course provider for the price in writing before paying. The discount helps only if it exceeds the fee during the period the insurer honors it.
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