How to Use Traffic School to Reduce Insurance Rates

More drivers are now using traffic school to reduce their insurance rates. This arrangement between drivers and their insurance companies allows vehicle owners to use traffic schools as a way to prevent future increases, and negotiate a current discount. The system does require some planning, so it is important to understand the fine print before signing it.

Difficulty: Easy

Instructions

1. Ask your insurance company if it allows traffic school attendance to reduce your rates. Most companies do, but yours may have requirements regarding course type and length and whether online schools are allowed.

2. Enroll in traffic school once you receive a citation or ticket. While you have 18 months to do it, enrolling early shows good faith and may encourage your insurance company to provide you with an even larger rate reduction.

3. Choose traffic schools that offer "Point and Insurance Reduction Programs." They focus on helping drivers who committed traffic violations over the last 18 months and require no test at the end of the course. The program is only available in certain states, but is directly connected to insurance rates, which means you automatically qualify for a reduction if you attend after a violation.

4. Attend defensive driving courses that relate to your offense. Traffic schools often specialize in speeding tickets, but they may offer special courses for young drivers, offenses committed during city driving (such as wrong parking and u-turns) and collisions.

5. Remember that the reduction applies only if you don't commit a second offense within a reasonable period, usually 2 to 3 years. If you do, the company often can raise your rates to the same amount they were before you received the reduction, and may even give you a higher premium.

Tips & Warnings

• You may save 3 to 15 percent on your insurance premium if you take the required courses. Confirm in advance with your insurance company and make sure the discount offered makes it worth it to pay for traffic school.
• Ensure that the traffic school is approved by both the DMV and your local court district. Unauthorized schools may not qualify you to reduce your insurance premiums.