Many car insurance companies offer a good student discount to encourage student drivers to achieve academically. To qualify for student discount programs, students must meet the following criteria.
- Maintain a “B” average or better: Most carriers require students to have a 3.0 GPA or equivalent.
- Rank in the top 20% of their class: Alternatively, eligibility can be based on class rank.
- Being a full-time student applies to both high school and college students.
This discount rewards good grades and safer driving stats for younger policyholders. The discount can save about 12.5% on average, that’s real money for families with student drivers.
What is a Good Student Discount on Car Insurance?
Young drivers (15-19) are more likely to be involved an accident due to their lack of experience and to engage in risky behavior like speeding or distracted driving. Therefore, this age group tends to pay more for auto insurance coverage. But one way to offset those costs is to be eligible for a good student discount.
A good student discount is a rate reduction for full-time high school or college students who show academic responsibility—usually by maintaining at least a “B” average or equivalent. Insurers see high academic performance as an indicator of overall responsibility, so they assume those students will be more cautious behind the wheel. That translates to lower risk and lower premiums for car insurance coverage.
Students usually need to provide a report card or transcript to get the discount. While the discount for students varies by carrier and policy, the average savings is 12.5%, with some discounts up to 25%. While high premiums for teen drivers may take a few years to come down, being eligible for a good student discount is an early opportunity to save and develop safe and responsible habits on and off the road.
How Do I Get a Good Student Discount?
To get a good student discount on car insurance, you must meet specific academic and enrollment requirements and go through a verification process to prove eligibility. These are the biggest discounts for students, usually for young people between 16 and 25 years old who are single and full-time in high school, college, or an accredited homeschool program.
To qualify, you must meet the academic standards listed below.
- Maintain a “B” grade point average or higher or a 3.0 GPA;
- Rank in the top 20% of your class;
- Score in the top 20% nationally on standardized tests like SAT, ACT, PSAT, or equivalent exams.
Eligibility for homeschooled students may only be based on standardized test performance since there is no traditional report card.
Getting a good student discount typically involves four steps listed below.
- Meet the qualifying academic performance, as proven by cumulative transcripts, report cards, or standardized test results.
- You can contact the insurance provider by phone or email to inquire about student insurance discount eligibility and start the application process.
- Submit proof of academic standing, which may include a copy of your recent transcript, dean’s list certificate, or official standardized test scores.
- The provider will apply the discount after verifying the documents when purchasing or updating the insurance policy.
In some cases, other scenarios can also apply. For example, students who live more than 100 miles from home and don’t bring a vehicle to campus can also qualify for lower premiums. Completing a driver education course can also get you an additional discount when combined with academic-based savings.
Since discount terms vary among providers and the state, shop around and compare auto insurance quotes. You want to ensure the insurance company offers competitive rates even after discounts are applied. While a good student discount can save you up to 20%, it’s just one factor affecting your overall premium.
How Much Money Can I Save with a Good Student Discount?
Most auto insurance companies offer good student discounts to young drivers with good grades. However, the amount of savings insurance discounts will provide can vary greatly depending on the insurer, your location, driving record, vehicle, and academic qualifications.
Most insurers offer a good student discount between 5% and 25% off the total premium. 25% is the high end of the scale, but most students can expect 10-15% off, depending on the insurer and how they consider academic records.
Insurance discounts and rates are change with each different insurance company. It is best to compare multiple car insurance quotes from different providers. By comparing quotes, customers can get the best insurance premiums, discounts, and coverage that fits their budget.
A good student discount can mean big savings on car insurance, but the amount depends on many variables, and consumers should compare providers to get the most affordable rates.
The typical student discount is 5-25% off the total premium. 25% is the high end of the scale, but most students can expect 10-15% off depending on the insurer and how they weigh academic records.
What are Other Ways Young Drivers Can Save on Car Insurance Rates?
While a good student discount significantly reduces premiums, young drivers have many other ways to cut the cost of car insurance. These range from behavioral practices to eligibility-based car insurance discounts that add to long-term savings.
- Stay on a Parent’s Policy: Being listed as an additional driver on a family policy is often the cheapest option for teens and college students. By being on a family plan, young drivers get multi-car and multi-driver discounts, which is much cheaper than having an individual auto policy.
- Leverage Student-Specific Discounts: Students attending school out of state without access to a family vehicle may be eligible for a distant student or “away at school” discount. Students can also get savings for completing an accredited drivers education or safe driving course which reinforces good driving habits and is often recognized by insurers.
- Drive Safely: A clean driving record is key. Avoiding moving violations and at-fault accidents not only makes you eligible for safe driver discounts but also keeps long-term insurance costs low. Vehicles with advanced safety features or high safety ratings may also qualify for lower premiums.
- Modify Policy Terms: Increasing the deductible—the amount you pay out-of-pocket before insurance pays—can lower your monthly or annual premium. While this means you’ll have to pay more in the event of a claim, it can save you upfront costs if managed carefully.
- Limit Driving: Insurers often factor in annual mileage. Driving less—whether because you live on campus where a car isn’t needed or opt for public transit—can result in a lower risk profile and rates. Some insurers even offer pay-per-mile insurance, which can save you more if you drive less.
- Practice Good Financial Habits: In many states, credit-based insurance scores play a role in premium determination. Young drivers with good credit—such as on-time bill payments—are generally eligible for better rates.
- Graduated Drivers License Programs (GDL): Having your teen participate in your state’s GDL program can lower your car insurance rates. GDL programs for new drivers include extended practice periods, curfews, and restrictions on high-risk driving conditions for teens. These can reduce accident rates among new drivers. These GDL programs promote safer driving behavior for new drivers and may impact insurance eligibility and rates over time.
- Compare Quotes Regularly: Since pricing algorithms vary among insurers, reviewing insurance coverages and comparing quotes regularly is a good idea. This ensures policyholders are getting all the auto insurance discounts they are eligible for and the best rate available based on their current driving profile.
A proactive approach that combines safe driving, good financial habits, and policy management can offer young drivers big discounts.
The Bottom Line: Save More with a Good Student Discount
For young drivers and their parents, a good student discount is a no-brainer way to save on car insurance. Eligibility is usually based on age, full-time student status, and academic achievement—often a minimum GPA or being on the honor roll. Young drivers may not qualify for the lowest auto insurance rates, but this discount, when combined with other savings like a safe driving discount, bundling, or staying on a parent’s plan, can mean a whole lot of savings.
Academic success does more than look good on a résumé—it can lower your insurance premium. To get all the car insurance discounts and ensure you’re getting the best deal, you must explore all your coverage options.
Call an insurance agent for a free car insurance quote from Insurance Navy today and see how much you can save.
Frequently Asked Questions
Are there age limits for good student discounts?
Yes, some insurers have age limits for good student discounts, with the typical college age being 25. Others may go beyond 25 but have an upper limit. Since auto insurance policies vary, check with your insurer for age criteria.
Can homeschooled students qualify for the discount?
Many insurers offer good student discounts to homeschooled students. Eligibility is usually determined through alternative documentation such as standardized test scores, certified academic evaluations, or other verified proof of academic performance. Requirements vary by insurer, so check with your insurer to find out what documentation is accepted.
Will the discount be taken away if I have one bad semester?
Good student discounts are usually reassessed regularly (once or twice a year). A temporary drop in grades below the required threshold may result in the discount being suspended. However, it can often be reactivated when the student meets the qualifying grades again in the next evaluation.
When does the discount take effect after I submit my grades?
The time until your good drivers discount takes effect will vary by insurer. Usually, the discount usually takes effect after the submitted grades are reviewed and approved. In most cases, the effective date is the start of the next billing cycle or policy renewal. To find out the exact timeline, check with your insurance agent.
