Good Student Auto Insurance Discounts
Good Student Car Insurance Discounts
Younger drivers often face paying higher car insurance premiums than more experienced drivers because they are more prone to accidents and, as such, statistically present a higher risk to their insurance companies.
Fortunately, if you are a young driver (or the parent of a young driver), you do have options to offset these costs. Good student discounts can be a great way to save money on car insurance coverage for drivers in their teens or early twenties.
What Is a Good Student Discount?
A good student discount is exactly what it sounds like; it rewards students financially for doing well in school.
Because statistics show that students who get good grades are less likely to get into a car accident, car insurance companies see them as lower risk and, in turn, offer savings on their rates.
Some insurance companies may even continue the discount for a finite period (e.g., 1 year) after the student finishes school.
Exactly how much gets taken off the student's car insurance premium will vary amongst companies, so it's a good idea to compare several auto insurance providers to see who offers the most substantial savings.
Driver's Education Discounts
While not technically a “good student discount," teen drivers are often given discounts for completing and passing an approved driver's education course.
Visit our Driver's Ed section to learn all about the driver's education requirements in your state.
Qualifying for a Good Student Discount
In order to get the insurance discounts available to good students, most car insurance companies require that the student currently:
- Be younger than 25 years old.
- Be enrolled full-time at a high school or college/university.
- Maintain at least a B average (3.0 grade point average), or be on the honor roll or Dean's List.
- Show other accepted proof of good performance (if home-schooled).
- See “Proving Good Student Status" below.
If your (or your child's) grades aren't high enough to qualify, you can work to get them up. Once they are at the required level, you can revisit the discount with your car insurance company.
NOTE: Keep in mind that qualifications might vary somewhat with carriers and states. Also, if more than one honor roll student is listed on the policy, each student might not receive the full discounts. The rules will vary amongst car insurance providers, so make sure to ask your agent about all related details as you research this discount type.
Proving Good Student Status
Auto insurance companies generally require proof that the student is maintaining good grades.
The following items will typically be accepted as proof of good student status:
- Report card.
- Letter signed by your school administrator.
You may need to provide proof of good student status every time you renew your policy to continue receiving the discount.
Students who are home-schooled may qualify for a good student discount with the right documentation. For example, some car insurance companies will offer the good student discount if you test among the top 20% in certain standardized tests such as the SAT or ACT.
Speak with your insurance provider about exactly what proof they require.
Resident Student Discounts
Students who are going to be attending college far away from their home city/state (for example, 100 miles or more) may qualify for a “resident student discount," which can offer significant savings to the policyholder.
This discount only applies if the student is planning not to drive the insured vehicle while away at school, but may use it during the months when she is home.
The proof required for a resident student discount is determined by the insurance company, but will likely include at least the address of the college/universitywhere the student will attend.
If you are a parent of a teenager going away to college, consider asking about the resident student discount. It can greatly lower the premium on your car insurance coverage.
How to Get Good Student Discounts
If you think you qualify for a good student discount, contact your insurance agent for more details. If your carrier does not offer a good student discount, you might want to shop around for car insurance and sign up with an insurance company that does offer this benefit.