Final answer:
The number of moving violations or at-fault accidents a driver can have to qualify for a discount varies by insurer. Insurance companies offer discounts to drivers with clean records, but some may allow minor violations.
Step-by-step explanation:
Moving violations or at-fault accidents a driver can have and still qualify for a discount is specific to each insurance company's policies. In general, insurers offer safe driver discounts to those who have maintained a clean driving record for a certain period, typically three to five years. However, some companies may allow a minor violation or at-fault accident without penalizing the driver's eligibility for a discount. It is essential for drivers to inquire with their specific insurers to understand the criteria for eligibility.
Using the provided automobile insurance example, it's clear that insurance premiums are calculated to cover the overall costs of damages within a group of drivers. Insurance companies aim to collect a total in premiums that matches the expected payout for claims, as demonstrated by the 100 drivers who would each pay a $1,860 premium to cover the $186,000 in damages. Those with fewer violations or no accidents are often rewarded with discounts as they are seen as lower risk.