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Best Car Insurance Discounts for Good Students

Adding a child to your auto policy can increase your auto insurance premium considerably because they lack driving experience. Fortunately, you can save on car insurance if your child earns good grades in school and earns academic achievements, like making the honor roll or dean’s list. Good student discounts typically range from 5% to 25% and are available up to age 25 depending on the insurer.

Keep reading to learn how good grades can translate into cheaper car insurance rates.

Best Car Insurance Discounts for Students

State Farm has the highest good student discount and good students can potentially save up to 25% on car insurance. Other national carriers also offer a good student discount with savings ranging from 5% to 20%. Below, we’ve noted some common carriers that offer good student discounts and each company’s requirements.

Company

Maximum Discount

Minimum GPA

Highest Age Allowed

State Farm

25%

3.0, or “B” average

25

Allstate

20%

3.0, or “B” average

25

Liberty Mutual

20%

2.5 to 3.0, or “B-” average

24

Nationwide

15%

3.0, or “B” average

24

Mercury

15%

3.0, or “B” average

22

Farmers

11%

3.0, or “B” average

24

Travelers

8%

3.0, or “B” average

24

Good student discounts typically range from 5% to 25% on car insurance!

How To Get a Good Student Discount on Car Insurance

Applying for a good student discount is relatively straightforward. You need to ask your insurance agent how you can qualify, what documentation is needed and the requirements for maintaining the discount.

Talk to Your Insurance Agent About the Requirements

Not all insurance companies offer a good student discount and the qualifications can vary by company. Keep in mind that 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 24 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.

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

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

Insurers may also limit the discount to single, unmarried drivers. Since students often join their parent’s policy, this generally won’t be 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.

Get Good Grades

Once you understand the requirements, you will need to earn grades that meet the insurer’s minimum GPA threshold, which is usually a B or higher. If your grades do not qualify you for a discount, you will need to study hard in the upcoming school session and use those grades to apply for the good student car insurance discount.

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 the following documents:

  • Most recent report card or college transcript showing the required GPA or equivalent grading system
  • Documentation of “Honor Roll” or “Dean’s List” achievement
  • Number of credits enrolled (to prove full-time student status)
  • Form signed by the 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, the homeschooled student may need to score within the upper 20% of the SAT or ACT. 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 create a lapse in coverage that will lead to higher insurance premiums when you’re shopping for another carrier.

Maintain Your Grades

Qualifying for the car insurance discount during one policy term does not mean it automatically applies when your policy renews. Insurers will generally require you to submit proof of good grades at least once per year to maintain your good student status. Studying hard and retaining your full-time student status can help you maintain your savings until you hit 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 and dorming at college if they’re on their parent’s policy.

  • Distant college student discount: Parents of college students that 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 but only on school vacations and holidays.
  • Academic membership discount: Some insurers offer auto insurance discounts for being a member in 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 for a certain time period.
  • Teen driver discount: Young drivers are considered risky drivers and can increase premiums when added to their parent’s auto policy. Some insurers offer a discount to high school students ages 18 or younger — a great way to save money when premiums are at their highest.
  • Defensive driving discount: Save money by completing a defensive driver training course that refreshes your knowledge on safe driving habits.
  • Enroll your insurer’s telematics program: Telematics technology tracks your driving data, such as speeding, abrupt braking and how often you drive. Your insurer will apply a premium discount based on what the data shows about how safely you drive.
  • Switch to a pay-per-mile policy (for remote students): Taking online courses can reduce your overall mileage since you’re not commuting to campus. Switching to a pay-per-policy that charges you based on how much you drive can result in additional savings.

Insurers typically require a 3.0 GPA or “B” average from full-time students to qualify for the discount.

Consider accident forgiveness. Accident forgiveness is an optional auto policy endorsement that stops your rates from increasing after your first at-fault accident. Car insurance rates can increase at least 10% after getting into a car accident. At-fault accidents are already costly and accident forgiveness can help you mitigate some of the financial fallout post-accident.

Find the Best Car Insurance Discounts for Students

How Much Can You Save With a Good Student Discount?

Drivers can save anywhere from $112 to $350 per year based on a full coverage policy that costs $1,403 per year and a good student insurance discount ranging from 5% to 25%. Actual savings can vary significantly by location, company, age, car model, the application of additional discounts and other factors.

Earning good grades can help students offset their higher car insurance rates. Insurance carriers often charge higher rates for students, who tend to be inexperienced and young drivers. Parents may be surprised to see how much it costs to add their student driver to their policy and costs may be higher if the student buys their own policy.

Insurers will generally require you to submit proof of good grades at least once per year to maintain your good student status.

How Do You Maintain a Good Student Discount?

Maintaining your good student discount will require you to keep up with your grades and retain your full-time student status. Follow the tips below to maintain your savings.

  • Study hard: A good student discount is dependent mostly on how well you do in school. Pick up good study habits, take good notes and ask questions in class.

  • Be a full-time student: Most 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 remove your good student discount.

  • Maintain a clean driving record: Some insurers require good grades and a clean driving record to maintain the good student discount. Teenage drivers should take extra care while driving to the age group’s higher risk of motor vehicle crashes.

  • Keep copies of academic achievements: Certain school accolades, like making the Dean’s List or being an Honor Roll student can qualify you for the good student discount. Include these forms when submitting documentation to your insurer.

FAQs

What GPA is required to earn a good student discount on an auto insurance policy?

Most national carriers require a 3.0 GPA, or “B” average, to qualify for a good student discount on a car insurance policy. You will need to submit proof of grades to first apply the discount and your insurer may request documentation again if you renew your policy.

How long do good student discounts last?

High school and college students can qualify for a good student discount until age 22 to 25 depending on the insurance company.

What happens if my grades begin to decline?

If you do not meet the GPA requirements for the good student discount, the discount will no longer apply to your car insurance policy. Insurers generally require high school and college students to submit proof of grades at least once per year.

Are there student discounts on car insurance?

Depending on the insurer, high school and college students can save on car insurance if they maintain a minimum GPA and if they move away for school and leave their car at home. Students can also qualify for other general discounts, such as maintaining a clean driving record for several years and driving a car equipped with the latest safety features.

Why do auto insurers offer good student discounts?

Auto insurers offer good student discounts because good grades have been linked to fewer car accidents, traffic citations and driving while impaired. Generally, insurers believe that good students are more likely to be studying hard than committing moving violations.

Key Takeaways

  • A good student discount is a discount applied toward your car insurance policy for high school and college students that earn good grades.
  • The average good student discount can range from 5% to 25% depending on the car insurance company.
  • Several national carriers require a 3.0 minimum GPA or “B” average to qualify for the good student discount.
  • Student drivers often pay higher rates because they are young drivers that are inexperienced and a good student discount can help reduce costs.

Save on car insurance. SmartFinancial compares coverage options from hundreds of auto insurance policies to match you with an affordable car insurance policy that meets your insurance needs. Our online comparison tool saves you time and money and it’s completely free to use! Just enter your zip code below or call 855.214.2291 to receive your free car insurance quotes.

Methodology

The discounts above were collected from each insurance company’s website. If the discount amount was not publicly disclosed, we obtained the discount amount from an insurance agent in California. Good student discounts may not be available in all states and the discount amount can vary by state.

The savings amount was calculated based on the average cost of a full coverage policy ($1,403 per year) for a medium sedan. This figure was obtained from a 2021 analysis of driving costs by AAA.

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