Best Car Insurance Discounts for Good Students

Adding a child to your car policy can considerably increase your insurance premium because they lack driving experience. Fortunately, you can save on car insurance if your child earns good grades and qualifies for academic achievement discounts — some companies offer savings of up to 25%.

Keep reading to learn how earning good grades can unlock the best car insurance discounts for students.

On This Page

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  Best Car Insurance Discounts for Students

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  How To Get a Good Student Discount on Car Insurance

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  Other Ways for Students To Save on Car Insurance

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  How Much Can You Save With a Good Student Discount?

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  How Do You Maintain a Good Student Discount?

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  FAQs

Best Car Insurance Discounts for Students

Below, we’ve listed several major insurers that offer good student discounts, along with each company’s GPA requirements to qualify:

Keep in mind that qualifications and discounts may vary based on individual factors and your location. Additionally, you may be required to be a full-time student to receive this discount, depending on the insurer’s requirements.^[10]

For example, part-time college students may not qualify.

How To Get a Good Student Discount on Car Insurance

Below are the typical steps to get a good insurance discount on your car insurance policy:

1. Talk to Your Insurance Agent About the Requirements

Not all insurance companies offer a good student discount, and the qualifications can vary by company. Additionally, insurers may not offer the discount in all states, and the discount amount may vary by region.

Good student discounts are only available to young drivers — typically up to age 25, depending on the insurer. Only full-time students qualify, so students studying part time would not be eligible. Insurers typically require a 3.0 GPA or “B” average to qualify for the discount.^[8]

On top of your grades, you may need to meet other academic requirements, such as:^[8]

• Ranking in the upper 20% of your class
• Inclusion on the “Honor Roll,” “Dean’s List” or another academic achievement list

Insurers may also limit the discount to single, unmarried drivers.^[8] Since students often join their parents’ policy, this generally isn’t an issue unless you buy your own policy and add your spouse as a listed driver.

If you’re shopping around for the first time or switching to a new carrier, you may not have the option to apply a good student discount towards your online quote. Instead, you will need to ask the insurance agent how good grades could reduce your premium.

2. Get Good Grades

Once you understand the requirements, you’ll need to earn grades that meet the insurer’s minimum GPA threshold — usually a B or higher.^[8] If your grades don’t qualify you for a discount, study hard during the next school term and apply again for the good student car insurance discount.

3. Submit Proof of Good Grades

Your insurance company will instruct you on what they need to approve the good student discount. You may receive an application form that must be signed, with supporting documents attached. Generally, you will need one or more of the following documents:^[7]

• Most recent report card or college transcript showing the required GPA or equivalent grading system
• Documentation of “Honor Roll” or “Dean’s List” achievement
• Form signed by a school administrator

Homeschooled students can qualify for a good student discount as well. Instead of submitting a report card, some insurers will accept a high ranking on a nationally recognized standardized test. For example, Nationwide offers a good student discount to homeschooled students who score within the upper 20% of the SAT, PSAT or ACT.^[7] Ask your insurance agent about the details.

Avoid forging documentation in an attempt to lower your car insurance premium. Submitting fake proof counts as misrepresentation, and your insurance company may terminate your coverage if you’re caught. This can result in a lapse in coverage, potentially leading to higher insurance premiums when shopping for another carrier.

4. Maintain Your Grades

Qualifying for the car insurance discount during one policy term does not mean it automatically applies when your policy renews. Insurers generally require you to submit proof of good grades at least once per year to maintain your good student status.

Studying hard and staying enrolled as a full-time student can help you maintain your savings until you reach the age cap.

Other Ways for Students To Save on Car Insurance

Beyond earning good grades, there are other ways for students to save on car insurance — such as discounts for keeping a clean driving record or dorming at college if they’re on their parents’ policy.

• Distant college student discount: Parents of college students who move away to a school at least 100 miles away but left their car at home may qualify for a distant college discount. The student driver may still be allowed to drive the car during school vacations and holidays.^[13]
• Academic membership discount: Some insurers offer auto insurance discounts to individuals who are members of a fraternity, sorority or honor society.
• Good driver discount: Save on car insurance by maintaining a clean driving record — free from accidents, tickets and claims — over a set period.
• Defensive driving discount: Save money by completing a defensive driver course that refreshes your knowledge of safe driving habits.
• Enroll in your insurer’s telematics program: Telematics technology tracks driving behavior, such as speeding, hard braking and frequency of trips. Insurers apply discounts based on how safely you drive.
• Switch to a pay-per-mile policy (for remote students): Students taking online classes or commuting less may benefit from a pay-per-mile policy. These plans charge based on actual mileage driven — ideal for remote learners.
• Consider accident forgiveness: Accident forgiveness is an optional policy endorsement that prevents a rate increase after your first at-fault accident. Rates can increase up to 50% after a claim, so this coverage may help limit financial fallout post-accident.^[14]

How Much Can You Save With a Good Student Discount?

While discount savings vary by insurer, a good student discount may allow you to save up to 25%. The average cost of a full coverage policy is $2,571 per year, meaning good student drivers could save as much as $642.75 on their annual premiums.^[15]

How Do You Maintain a Good Student Discount?

Maintaining your good student discount requires keeping up your grades and retaining full-time student status. Follow the tips below to maintain your savings.

• Study hard: Your school performance primarily determines your eligibility for a student discount. Develop strong study habits, take clear notes and ask questions in class.
• Be a full-time student: Many national carriers require customers to be full-time students in high school or college. Dropping courses that change your student status to part time can potentially remove your good student discount.
• Keep copies of academic achievements: Certain school accolades — like making the Dean’s List or Honor Roll — may help you qualify for the good student discount. Include these when submitting documentation to your insurer.