Adding a student driver to an existing car insurance policy can mean a big increase in premiums. Statistically, young drivers have a much greater risk of accidents, traffic violations, and distracted driving behaviors, which means the likelihood of having to file a claim is much greater, too. Because of this, car insurance companies charge much higher premiums to insure high school or college students than they do for drivers ages 25 and up. However, you can possibly help reduce these rates through good student discounts if your child qualifies.
An independent insurance agent in your area can help you find out if you're eligible for good student discounts on your car insurance. They can also help you find a policy if you're still in need of coverage. But first, here's a breakdown of good student discounts and how to earn them.
What Are Good Student Discounts?
Car insurance companies offer good student discounts to policyholders with a child on their policy who maintains good grades. Good student discounts are one of the more common car insurance discounts offered by many carriers. If you have an insured driver on your policy who's either in high school or college and maintains a good GPA, you might qualify for a good student discount on your auto insurance coverage.
How Do I Get a Good Student Discount?
There are typically a few requirements that must be met in order to qualify for good student discounts. If you have a student driver on your car insurance policy, check to see if they meet the following criteria:
- Full-time student (i.e., high school, college, or homeschooled)
- Aged 16 to 25
- Single
- Maintains one of the following:
- 3.0 GPA or B average
- Top 20% in their class
- Ranked in the top 20% on various standardized tests (e.g., PSAT, SAT, ACT, TAP, PACT, etc.)
If your insured student driver meets these requirements, ask your car insurance company about a good student discount.
Does Your GPA Affect Car Insurance?
If you're a student driver, your GPA can absolutely affect your car insurance premiums. Maintaining a 3.0 GPA or above, otherwise referred to as a "B average," can lead to good student discounts. Many carriers offer discounts for students with good grade averages, but you'll need to ask your independent insurance agent to check with your specific car insurance company to be sure.
Why Do Insurers Offer Good Student Discounts?
Generally speaking, young drivers have the highest risk of accidents, specifically those aged 15 to 19. So, car insurance companies tend to view student drivers as being a much higher risk to insure, as the likelihood of having to pay out car insurance claims is greatly increased. However, any demonstration of responsible behavior, such as maintaining good grades, can indicate a greater likelihood of being a responsible driver as well.
Therefore, many car insurance companies offer good student discounts to those who maintain at least a 3.0 GPA or a B average. Car insurance carriers believe teens with good grades and who put more effort into their studies are more likely to maintain safer driving behaviors than those with poor grades. So, they reward the policyholder with lower premiums.
Does Being a Student Decrease Car Insurance Rates?
Being a student in general doesn't decrease car insurance rates. In fact, the opposite result is often true. Traditional-aged high school and college students are among the highest risk groups for car accidents, and as a result, tend to have the highest car insurance rates of any age group. However, there are a few ways students can earn car insurance discounts, such as:
- Good student discounts: These are offered to students who maintain good grade averages.
- Student away-from-home discounts: These are offered to student drivers who live a certain distance away from home and won't be using the family vehicle while at school.
- Good driver discounts: These are offered to students who have maintained a clean driving record for a set number of years.
- Safe driving course discounts: These are offered to students who complete an approved safe driving course that goes beyond the material covered in a basic driver's ed course.
- Organization discounts: These are offered to former students who belong to alumni organizations or current students who belong to various student organizations.
If you're a current or former student who meets any of these criteria, you may be eligible to receive various student car insurance discounts.
How Much Can the Good Student Discount Save You on Car Insurance?
How much you can save on car insurance thanks to a good student discount can vary widely based on several factors. These include:
- Your insurance company
- Your state
- Your driving record
- Your vehicle
- Your age
- Your education status
- Your academic performance
The percentage of savings from a good student discount offered by one carrier may be considerably higher than another. That's why it's best to have your independent insurance agent shop around and compare policies and quotes for you. Your agent can easily help you find cheap car insurance near you.
Best Car Insurance Companies for Good Student Discounts
Not all car insurance companies offer good student discounts. Between those that do, the exact percentage of savings offered varies. Here are a few of our top picks for the best car insurance companies for good student discounts.
| Car Insurance Company | Good Student Discount Savings Rate | Overall Carrier Rating |
|---|---|---|
| Nationwide | 15% |
|
| Progressive | 10% |
|
| American Family | 19% |
|
| USAA | 4% |
|
| Allstate | 20% |
|
The Benefits of Working with an Independent Insurance Agent
Independent insurance agents work with multiple car insurance companies, so they're free to shop and compare quotes and coverage for you. Ultimately, they'll get you matched to a policy that offers the best overall blend of coverage and cost. Your agent can also scout out the car insurance company that offers the best good student discounts and other ways to save on your premiums. And down the road, your agent will be there to help file car insurance claims for you and update your coverage as necessary.
Sources
https://www.investopedia.com/terms/g/good-student-discount.asp
https://www.valuepenguin.com/good-student-auto-insurance-discount#other-student-discounts
