Georgia Course Acceptance for Insurance Discount – National Driver Safety Institute

Georgia Course Acceptance for Insurance Discount

Georgia Course Acceptance for Insurance Discount

The Defensive Driver Insurance Discount

The State of Georgia mandates that individuals who complete a qualifying 6-Hour Defensive Driver Course and who meet the personal legal requirements must be granted an insurance discount of up to 10% off their automobile insurance premiums. This insurance discount is required as per Georgia insurance law.

Since launching our Georgia defensive driver course programs in 2018 we have experienced a shocking amount of confusion, disinformation and even focused efforts by some insurance companies to erroneously refuse nonprofit administered online courses as valid for insurance discount purposes. We have reviewed currently enforced underwriting guidelines that blatantly violate GA insurance law, experienced repeated misunderstanding of the role played by the GA Dept. of Driver Services (GA DDS) relative to this insurance discount and noted clear failures to keep up to date with changes in Georgia insurance law.

Some insurance companies in Georgia seek to deliberately minimize the number of individuals receiving this valuable automobile insurance discount despite Georgia law mandating the discount be granted when earned. These efforts to deny Georgia citizens the insurance discount they have earned leads tens of thousands of individuals in Georgia to pay more for their automobile insurance than required!

Hundreds of thousands of drivers in Georgia have completed the Defensive Driver Academy course earning literally tens of millions of dollars in savings on their auto insurance. Insurance companies are facing strong profitability challenges and unfortunately some seek to offset financial losses by denying valid discounts. Regardless of the motivations this is wrong.

This document provides a comprehensive review of the relevant Georgia insurance law regulating the defensive driver discount on automobile insurance polices in Georgia. As we will demonstrate in exacting detail below, Georgia insurance law mandates that defensive driver courses administered by a nonprofit entity, and which meet all content standards defined by the GA DDS must be accepted for insurance discount purposes.

Background

The Defensive Driver Academy Georgia 6-Hour Defensive Driver & Driver Improvement Course has been developed by and is administered by the National Driver Safety Institute, a registered 501(c)(3) nonprofit entity in good standing in Georgia since 2018.

The Defensive Driver Academy course is distributed through multiple partnerships and innovative course delivery strategies. This course was specifically designed to meet all legal requirements mandated by Georgia Insurance Law for the defensive driver discount. Since the Defensive Driver Academy GA 6-Hour Defensive Driver Course was launched in 2018 over 425,000 individuals in Georgia have registered for the course which is broadly accepted for insurance discount by automobile insurance companies in Georgia. The NDSI is diligent in working with insurance companies to ensure they fully understand the law regulating the defensive driver discount and in providing documentation supporting DDA course compliance with all legal standards.

The Quick and Easy Explanation.

Whether or not a specific defensive driver course must be accepted by insurance companies in Georgia for the defensive driver discount is a question answered by Georgia insurance law. The Georgia Department of Insurance is empowered to enforce Georgia insurance law. The Law clearly states that any course administered by a nonprofit entity that is comparable to the AARP, the American Automobile Association, or the National Safety Council and which meets the content criteria standards for such courses provided by the GA Dept. of Driver Services must be accepted for insurance discount purposes.

The Defensive Driver Academy course has been developed by and is administered by the National Driver Safety Institute which is a valid nonprofit organization in Georgia clearly comparable to the examples provided in Georgia law. The Defensive Driver Academy course meets all content criteria standards set by the GA DDS. Thus, according to Georgia insurance law, the Defensive Driver Academy course must be accepted by insurance companies in Georgia for the defensive driver discount.

KEY POINTS:
  • The GA Dept. of Driver Services by law is specifically NOT empowered to “approve” any insurance discount course administered by a nonprofit entity. Thus, no nonprofit administered courses will ever appear on the GA DDS listing of approved courses. This is why nonprofit online delivery courses from example nonprofit entities specifically noted by name in Georgia law as being mandatory to accept for insurance discount (AARP – AAA – National Safety Council) are not present on the DDS listing of approved courses.
  • The GA DDS’s role relative to courses administered by nonprofit organizations is limited by law to establishing content criteria requirements that courses must meet. These are the same content standards required by the DDS for courses they are authorized to approve such as for drivers license point reduction or to satisfy a court order. The Defensive Driver Academy course meets all GA DDS mandated content criteria standards and we stand ready to provide documentary evidence upon request.
  • Insurance companies with underwriting guidelines which reference the GA DDS listing of “Approved Courses” as the full listing of courses that will be accepted for discount are in violation of Georgia law due to excluding valid nonprofit online courses that are not on the DDS list.
  • Insurance companies that refuse the discount to individuals who have completed an online course administered by a nonprofit entity and which meets the GA DDS content standards are in violation of GA insurance law regardless of the content delivery method.
  • The NDSI reports all documented instances of an individual being denied the discount after completing our course to the GA Dept. of Insurance for enforcement action.

Georgia Insurance Law – A Detailed Review

The Georgia Department of Insurance is legally empowered to administer and enforce all Georgia insurance laws and regulations. This is important to note as Georgia insurance law specifically states that the Georgia Dept. of Driver Services (GA DDS) does not have the authority to approve any defensive driver course administered by a valid nonprofit entity such as the National Driver Safety Institute (the NDSI developed and administers the Defensive Driver Academy course).

The complete Georgia law regulating the defensive driver discount is linked HERE and is cited in its entirety below. Each key relevant section in the law is highlighted in YELLOW and then discussed in BLUE text.

 

2022 Georgia Code
Title 33 – Insurance
Chapter 9 – Regulation of Rates, Underwriting Rules, and Related Organizations
§ 33-9-42. Reduction in Premiums for Motor Vehicle Liability, First-Party Medical, and Collision Coverages for Certain Named Drivers

Universal Citation: GA Code § 33-9-42 (2022)

a. For each personal or family-type policy of private passenger motor vehicle insurance issued or issued for delivery in this state, there shall be offered by the insurer a reduction of not less than 10 percent in premiums for motor vehicle liability, first-party medical, and collision coverages to the policyholder if all named drivers, as listed or who should be listed on the policy application or provided in information subsequent to such application, of each motor vehicle covered by such policy satisfy the requirements of subsection (b) or subsection (c), as applicable, of this Code section.  

The above section defines what the discount is and how it should be calculated. The next section below defines who is eligible for the discount.

b. Reductions in premiums shall be available if all named drivers who are 25 years of age or older:

1. Have committed no traffic offenses for the prior three years or since the date of licensure, whichever is shorter;

2. Have had no claims based on fault against an insurer for the prior three years; and

3. Complete one of the following types of driving courses:

A. A defensive driving course of not less than six hours from a driver improvement clinic or commercial or noncommercial driving school approved by and under the jurisdiction of the Department of Driver Services;

This section states that any course approved by the GA DDS must be accepted for the insurance discount. However, this does not say that ONLY courses approved by the GA DDS must be accepted – a key distinction that some insurance companies attempt to use to deny the discount for some courses! As we will see below, the GA DDS has no legal authority to “approve” any course offered through a valid nonprofit organization and thus no course offered by any nonprofit (including examples specifically noted in the law) is present on the GA DDS listing of approved courses!

B. An emergency vehicles operations course at the Georgia Public Safety Training Center;

C. A defensive driving course of not less than six hours from a driver improvement program which is administered by a nonprofit organization such as the AARP, the American Automobile Association, the National Safety Council, or a comparable organization and which meets the rules and regulations of the Department of Driver Services pursuant to subsection (g) of this Code section; or

This is a key section of the law! 

This makes it perfectly clear that courses administered by a nonprofit organization, and which meet the rules and regulations of the GA DDS as limited by subsection (g) must be accepted for insurance discount.

The code section notes by name 3 different nonprofit organizations (AARP, AAA and the National Safety Council) which administer online delivery courses that must be accepted for insurance discount, and it states that any “comparable organization” must be treated the same. None of these 3 nonprofit entities noted as examples in GA law are present on the GA DDS listing of approved courses found HERE.

The NDSI is without question a comparable nonprofit organization that most certainly meets the requirements pursuant to subsection (g) reviewed below! The NDSI and Defensive Driver Academy were created specifically to provide insurance discount qualifying defensive driver courses to Georgia drivers and the NDSI maintains comprehensive content documentation to prove compliance with GA DDS content standards.

D. A defensive driving course of not less than six hours which is offered by an employer to its employees and their immediate families and which meets the rules and regulations of the Department of Driver Services.

c. Reductions in premiums shall be available if all named drivers who are under 25 years of age:

1. Have committed no traffic offenses for the prior three years or since the date of licensure, whichever is shorter;

2. Have had no claims based on fault against an insurer for the prior three years; and

3. Complete a preparatory course offered to new drivers of not less than 30 hours of classroom training and not less than six hours of practical training by a driver’s training school approved by and under the jurisdiction of the Department of Driver Services or by an accredited secondary school, junior college, or college.

d. Upon completion of one of the defensive driving courses specified in paragraph (3) of subsection (b) or preparatory courses offered to new drivers specified in paragraph (3) of subsection (c), as applicable, of this Code section by each named driver, eligibility for reductions in premiums for such policy shall continue for a period of three years, provided any named driver under such policy does not commit a traffic offense or have a claim against the policy based on any such driver’s fault.

e. The Department of Driver Services shall assure through the supervision of driver improvement clinics, emergency vehicles operations courses, driver improvement programs administered by nonprofit organizations, and commercial or noncommercial driving schools approved by the Department of Driver Services that defensive driving courses shall be available and accessible wherever practicable as determined by the department to licensed drivers throughout the state.

This section simply makes it clear that the law directs the GA DDS to make every practical effort to ensure courses (including those administered by nonprofits) are available and accessible to licensed drivers throughout the state. This is an important part of the law because it mandates that any effort from the GA DDS that limits course availability and accessibility throughout the State is contrary to this law. This is a key point in the discussion of DDS regulation of nonprofit organization course in subsection (g) below!

f. Each insurer providing premium discounts under this Code section shall provide, upon the request of the Commissioner, information regarding the amount of such discounts in a form acceptable to the Commissioner.

g. The power of supervision granted to the Department of Driver Services over driver improvement programs administered by nonprofit organizations under this Code section shall be limited to the establishment of minimum standards and requirements relative to the content of specific courses offered by such programs…

This section of the law is critical to understanding how and why the GA DDS is restricted in its authority relative to defensive driving courses administered by nonprofit organizations. The law very clearly limits the DDS’s authority to the establishment of minimum standards and requirements for the content of courses. This clearly restricts the DDS from having additional authority such as to “approve” such courses or to apply restrictions or regulations beyond those specific to the course content.

 

The NDSI maintains extensive documentation for the purpose of proving that the GA Defensive Driver Academy course in fact does meet every course content requirement specified by the GA DDS and we stand ready to provide such documentation to any insurance company seeking proof of legal compliance for our course! Requests for documentation may be submitted to -  info@defensivedriveracademy.com.

…and relative to investigation and resolution of any complaints directed towards the content or operation of any course by a person enrolled in such course. The Department of Driver Services may adopt rules and regulations necessary to carry out the provisions of this subsection. 

The code section continues here to note that the GA DDS is authorized, in addition to setting content standards, to the investigation and resolution of complaints relevant to the course content or operations of such courses.

The Department of Driver Services shall not require a nonprofit organization to obtain a license or permit or to pay a fee in order to administer a driver improvement program in the state.  The Department of Driver Services shall not require a commercial driving school licensed by such department to obtain an additional license to teach a defensive driving course, as described in subparagraph (b)(3)(A) or preparatory course offered to new drivers as described in paragraph (3) of subsection (c) of this Code section, at any location in this state.

The law here very clearly restricts the GA DDS from being authorized to require any license or permit from a nonprofit organization or for such organizations to pay any fee to administer a defensive driver course in Georgia. This section of the law makes it very clear why nonprofit administered courses are not on the listing of GA DDS approved courses as the GA DDS here is specifically excluded from having the authority to approve any nonprofit administered course! Despite this very clearly stated section of GA law some insurance companies continue to refer to the GA DDS listing of approved courses as a definitive list of acceptable courses with any course not on the list being considered unacceptable which is a violation of GA law.

The law in section (e) cited above makes it clear that the intent of the law is to ensure broad and easy course access for everyone in Georgia. There is no legal intent to limit access to qualifying courses and the law thus restricts the authority of the GA DDS to do so relevant to nonprofit administered courses.

Nothing in this Code section shall prevent an insurer from offering the reduction in premium specified in subsection (a) of this Code section to a driver who does not meet all of the requirements of subsection (b) or subsection (c), as applicable, of this Code section.


Key Points – Summary.

  • Georgia insurance law is regulated by the Georgia Department of Insurance, not the GA Dept. of Driver Services. This means the GA DDS does not have jurisdictional authority over what defensive driver courses must be accepted for insurance discount purposes – this is in fact mandated by GA insurance law.
  • Georgia insurance law makes it clear the GA DDS does not have the regulatory authority to approve any defensive driver course intended for insurance discount purposes which is administered by a nonprofit organization in Georgia. The law restricts the GA DDS from requiring any nonprofit to obtain a license or permit or to pay any fee in order to administer a driver improvement program in Georgia.
  • Nonprofit entities that administer a defensive driver course for insurance discount purposes in Georgia must ensure that their course meets the content standards mandated by the GA DDS and comply with all GA DDS dispute resolution requirements. This is the jurisdictional limit the law allows to the GA DDS.
  • Nonprofit administered defensive driver courses that meet the content standards established and maintained by the GA DDS must be accepted for insurance discount in GA regardless of the content delivery method.
  • The Defensive Driver Academy course which is administered by the National Driver Safety Institute must be accepted for insurance discount by all insurance companies in Georgia because the NDSI is a valid nonprofit organization, and the course does meet all content standards defined by the GA DDS.
  • The GA DDS restriction for “No Online Courses Allowed” is relevant only for courses that the GA DDS has regulatory jurisdiction to approve. This is applicable for any defensive driving or driver improvement course or clinic that offers a DDS approved course valid for points reduction on your drivers license or to satisfy a court order. Nonprofit administered online insurance discount courses clearly do not qualify for drivers license points reduction or to satisfy any court order.

Frequently Asked Questions

  • Can insurance companies refuse the defensive driver discount just because the course provider is not on the listing of GA Dept. of Driver Services approved course providers?   NO.

If the course provider is a nonprofit entity comparable to the National Safety Council, AARP or AAA  –   and the course content meets all content standards mandated by the GA DDS, then the course completion certificate must be accepted for insurance discount purposes. This is precisely the case for the Defensive Driver Academy course which has been created by and is administered by the National Driver Safety Insititute which is a valid nonprofit organization in GA. The Defensive Driver Academy course also meets all GA DDS mandated content standards.

 

  • Does the GA DDS maintain a valid listing of all defensive driver course providers that must be accepted for insurance discount in GA?

No. Georgia insurance law in fact specifically prohibits the GA DDS from doing this because it does not allow the GA DDS to “approve” nonprofit organizations who administer such courses. Here is the relevant code section:     “The Department of Driver Services shall not require a nonprofit organization to obtain a license or permit or to pay a fee in order to administer a driver improvement program in the state”

 

  • How should a nonprofit organization prove that its course content meets the required standards defined for such courses by the GA DDS?  

While the GA DDS does not have the regulatory authority to approve nonprofit organization courses intended for insurance discount purposes, it does approve other types of course providers and as part of that approval process the GA DDS provides forms and processes defined specifically to enable the indexing of course content topics and referencing of topic points to the GA DDS defined content requirements. Any nonprofit organization should be able to utilize the GA DDS forms and processes to quickly and accurately provide proof of course content meeting GA DDS content standards. The NDSI maintains such documentation for the Defensive Drive Academy course and is always ready to provide such documentation to any relevant party. To request this documentation just send an email to –   info@defensivedriveracademy.com

 

  • Can an insurance company refuse to accept a defensive driver course certificate just because the course may be taken online?  NO

This is the single most confusing issue relative to GA insurance law and the defensive driver discount. The cause of confusion is simple:  

When the insurance discount for completing a defensive driver course was created, instead of having to establish an entirely new regulatory authority for insurance discount focused defensive driver courses along with the content standards for such courses the law simplified the entire process by using the already established course content standards from the GA DDS which had already created defensive driver course content standards for course taken to reduce drivers license points or to satisfy a traffic court order.

The primary reason that some insurance companies give for refusing to accept any online course completion certificate for discount purposes is because the GA DDS very clearly states that they DO NOT approve ANY online delivery course. There is no such thing as an online course that is “approved” by the GA DDS!

 The Georgia Dept. of Driver Services is legally responsible for everything related to your driver’s license. This includes establishing processes and procedures for obtaining a license and penalties relative to your license should you violate GA traffic laws. The GA DDS sets requirements for defensive driver courses that are approved by the GA DDS for points reduction on your license or to meet court ordered driver education requirements.

***IMPORTANT:  GA DDS approved courses can be taken to reduce points on your drivers license or to satisfy a traffic court order. Courses that must be accepted for insurance discount because they do meet the GA DDS content standards and are administered by a nonprofit are not approved by the GA DDS and thus typically are NOT acceptable for points reduction or to satisfy a court order.

While it is true that the GA DDS does not APPROVE any online courses it is also true that GA law prohibits the GA DDS from approving any course administered by a valid nonprofit organization for insurance discount purposes whether that course is online or not. So just because a course is made available online does not grant the GA DDS any jurisdictional authority over approving or rejecting the course for insurance discount provided it is administered by a nonprofit and meets the GA DDS content standards.

These facts are made perfect clear by the reality of Georgia insurance law specifically noting as examples 3 different nonprofit administered online courses that must be accepted for insurance discount purposes. These 3 examples (AARP, AAA and the National Safety Council) all feature online course delivery! So, Georgia law in fact provides 3 clearly named examples of online courses offered by nonprofit organizations that must be accepted for insurance discount – AND – none of these courses appear on the GA DDS listing of approved courses!

As we have also reviewed, GA insurance law also mandates that courses be made broadly available statewide and efforts to restrict online course access would clearly be contrary to this legal directive. 

There is no question that GA insurance law ensures that online courses from nonprofit entities must be accepted for insurance discount provided the course meets all GA DDS mandated content requirements. 

 

  • Can an insurance company give a discount for a defensive driver course that is not administered by a nonprofit, does not meet the GA DDS content standards and is not approved by the GA DDS? 

YES. Georgia insurance law specifies that any insurance company can choose to give any insurance customer the defensive driver discount for any reason it wants. Basically, there are zero restrictions on when an insurance company can choose to give the discount. The law does the opposite – it specifies when the insurance company MUST give the discount. But if they choose to do so, they can add the defensive driver discount because you got an 84 on your 9th grade algebra exam 35 years ago.

 

  • Do insurance companies have to accept any course completion certificate provided the course administrator is a nonprofit organization?   NO.

The course must also meet the content standards mandated by the GA DDS.

 

  • Do insurance companies have to accept a course completion certificate from a nonprofit if the course is only 1 hour long?  NO

Some companies offer a 1-hour course and insurance companies can choose to accept such courses but they are not required to do so. We are aware of come course providers who offer both a 6-hour and a 1-hour course allowed students to choose which course they take with the certificates appearing the same. This is clearly deception intended to trick underwriters but if an insurance company “falls for it” that is on them, it is not a violation of Georgia law.

 

PLEASE:  If you have any questions or comments relative to the information presented above please contact us at —   info@defensivedriveracademy.com

Who is the NDSI?

The National Driver Safety Institute is a 501(c)(3) non-profit focused on improving driver safety through the development and distribution of cutting edge defensive driver and driver improvement courses and content.
4480 Sloan Ridge,
Cumming, GA 30028 United States.
info@nationaldriversafetyinstitute.org
Copyright © 2018 by the National Driver Safety Institute

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