If you're a student or the parent of a student looking for ways to save on car insurance, the good student discount is one of the best ways to lower your premiums. Insurance companies offer this discount because statistics show that students who do well in school tend to be more responsible drivers.
By maintaining strong academic performance, you can qualify for a discount on premiums and reduce the cost of your auto insurance policy.
An Overview of the Good Student Discount
The good student discount is a price reduction offered by many insurance providers to young drivers with good grades. Insurers offer this discount because studies suggest that full-time students who are responsible in their education are also more likely to practice accident prevention on the road.
Typically, this auto insurance policy discount applies to high school and college students under a certain age limit. If you or your student meets the academic standards set by your insurer, you may qualify for the discount.
Eligibility Criteria for the Good Student Discount
To qualify for a good student discount, you’ll need to meet specific requirements set by your insurer. While these can vary, most companies have similar standards.
Grade Point Average (GPA) Requirements
Most insurers require a minimum GPA of 3.0 (B average) or higher. If your school uses a different grading system, equivalent academic achievements may still count.
Dean's or President's List Inclusion
Some insurers accept students who make the Dean’s List or President’s List, even if their GPA is slightly below the cutoff.
Standardized Test Score Criteria
A few insurance companies offer discounts to students who score in the top 20% on standardized tests such as the SAT, ACT, or PSAT.
Academic Verification
To receive your discount, you’ll need to provide proof of academic performance through recent report cards, transcripts, or a letter from your school district.
Safe Driving Record
In addition to good grades, some insurers may require a clean driving record with no at-fault accidents or violations.
Benefits of the Good Student Discount
The good student discount for teens and college students provides multiple advantages. You save money when adding your young, newly licensed driver to your policy, while reinforcing responsible habits.
Reduction in Insurance Premiums
A good student discount can reduce your car insurance costs by 5% to 25%, depending on the insurer. So, how much is a good student discount for car insurance? The exact savings vary but can add up significantly over time.
Encouragement for Academic Achievement
This educational discount rewards high school and full-time college students for their hard work and responsibility. It also offers extra motivation to maintain good grades.
Financial Incentives Combined with Other Discounts
Many insurers allow you to combine a good student discount with a variety of discounts. These may include a driver education discount or multi-car savings, for even greater reductions.
If your student is away at school and not driving your covered vehicle, ask your provider about a distant student discount.
Different Requirements by Insurance Companies
While the general concept of a good student discount or college degree discount is similar across providers, each insurance company may have its own specific requirements and qualifications.
Variances in Academic Standards
Not all insurers have the same rules. While some require a B average, others might accept alternative forms of academic excellence, such as high standardized test scores.
Types of Educational Institutions Accepted
Most insurance providers accept students from accredited high schools and colleges. Some providers may extend eligibility to homeschooled students if they meet standardized test score criteria.
Verification Process for Qualification
Before you can receive a good student discount, your insurance provider will require proof that you meet the academic criteria. This process helps confirm that only eligible students receive the discount and typically involves submitting documentation within specific deadlines.
Required Documentation
To apply for a good student discount, you'll likely need to submit one or more of the following:
- A recent report card or transcript
- A letter from a school administrator
- A certificate of achievement if your school does not issue GPAs
Deadlines for Submission
Insurers usually require updated documentation every six to 12 months. Be sure to check your provider’s specific rules so you don’t lose your discount.
Navigate Insurance Discounts and Get a Quote
If you're a student driver or a parent looking for cheap auto insurance for teens, the good student discount is a great way to cut down on costs. To find the right auto insurance policy for your needs, you should compare multiple options. Insurance prices change daily, and discounts can vary depending on your zip code and driver profile.
Take a few minutes to compare coverage options and find the best deal for you and your young driver. It’s fast, free, and can help you get the lowest price available. Get your EverQuote custom insurance comparison now!