5+ years in auto insurance and personal finance writing
Featured in top personal finance publications
Lindsay is a widely published creator of auto insurance content. She also specializes in real estate, banking, credit cards, and other personal finance topics.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Learning to drive is an important milestone that gives teens more independence and provides parents a break from being chauffeurs. But adding a teen driver or college student to your car insurance policy can increase your premiums dramatically.[1] That’s because car accidents are more common among young drivers due to a lack of experience.[2]
Fortunately, many car insurance companies offer a good student discount, and you should consider this when comparing car insurance options for your teen.
Here’s what you need to know about good student discounts.
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What’s a good student discount?
A good student discount is a premium reduction that some auto insurers offer to students based on their performance in school.
Research shows that car crashes are less common among students who get good grades. Because of the lower risk of a claim, insurers are able to provide a discount to good students.[3]
Good to Know
Most car insurance companies set a minimum GPA that students must earn to qualify for the discount, and you’ll typically need to provide the student’s report card to the insurance company to prove this. Most companies also require full-time enrollment in school.
Students typically need at least a B average to be eligible for savings.
How to get a good student discount
While the process to attain a good student discount may vary from one insurer to the next, you’ll generally need to follow these steps:
Earn good grades. High school and college students can earn good grades by completing coursework on time and scoring well on exams. If your student is struggling, talking to the teacher or professor can help. You may also want to hire a tutor to work with your student.
Compare discounts. If you’re adding a young driver to your policy, it’s a good idea to get new rate quotes from a handful of car insurance companies. You should also call your insurance agent or research the discounts you may be eligible for so you can estimate your rate with each company.
Submit proof of academic achievement. Once you’ve chosen an auto insurance company, ask your agent about the good student discount process. Most car insurance companies will require you to submit a document that shows your student meets the requirements for the discount. A current report card should be sufficient. Some insurance companies may accept a signed form from your school administrator as another option.
Receive the discount. You’ll likely see the discount reflected in your next premium payment. If you paid an annual premium, you may receive a partial refund for the discount amount.
Renew your eligibility as needed. Each company has its own rules for renewing a good student discount, but your insurer may require you to submit a report card again when you renew your policy.
Companies that offer good student discounts
Each car insurance company has different rules for how students can qualify for a discount, but most companies require full-time enrollment, at least a B average, and for the driver to be younger than 25. Some companies allow homeschooled students to qualify in other ways, like scoring in the top 20% on a standardized test.
The table below provides a glimpse into good student requirements for several of the nation’s leading insurers.
Insurance Company
Good Student Discount
Requirements
Allstate
Unspecified
Unmarried, younger than 25, and one of the following:
Minimum GPA of 2.7 (B-)
Successful completion of teenSMART driver education program
Studying at least 100 miles from where your car is garaged
American Family Insurance
Unspecified
Full-time students between ages 16 and 25 with a B average (3.0 GPA) or who rank in the top 20% of the class in addition to being recognized on the dean’s list or honor roll
Homeschooled students can qualify by scoring in the upper 20% of a scholastic achievement test
Farmers
Unspecified
Minimum 3.0 GPA, dean’s list, honor roll, top 20% of class, or top 20% of standardized testing
GEICO
15%
Full-time students with a B average or better
Nationwide
Unspecified
Full-time students ages 16 to 24 with a B average or better
Progressive
10%, on average
Full-time students younger than 23 with a B average or better who are on a family policy
State Farm
Up to 25%, plus additional savings opportunities for young drivers
Varies by state. In California, for example: Full-time students with less than nine years of driving experience if they’re ranked in the top 20% of the class, have a B average or better, have a 3.0 GPA or higher, or are on the dean’s list or honor roll
Homeschooled students can qualify by scoring in the upper 20% of certain national standardized tests
Travelers
Unspecified
Full-time students with at least a B average or those ranked in the top 20% of their class; age requirements vary by state
USAA
Up to 10%
Full-time students younger than 25 who are ranked in the top 20% of the class, have a B average or better, have a 3.0 GPA or higher, or are on the dean’s list or honor roll
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Other ways teens can save money on car insurance
Insurance companies charge higher premiums when a teen driver is on the policy, meaning any additional savings are vital. Here are some additional ways teen drivers can reduce car insurance costs:
Compare quotes. The age of the drivers on your policy will affect your rates with any insurer, but some car insurance companies offer more generous rates to teens. Get a handful of customized quotes before purchasing a policy, and be sure to factor in the discounts you’ll be eligible for.
Choose your first car carefully. While a high school student may desire a flashy sports car, aim for a make and model with plenty of safety features. This vehicle will be cheaper to insure. If you have multiple cars on your policy, see if you can assign the youngest driver to the car with the lowest premium and make sure they drive that vehicle.
Add a teen driver to your family policy. It’s typically less expensive to add a young driver to a family policy than to buy a separate policy for your teen.
Enroll in a driver training course. Many insurance companies offer discounts for teens who have taken an approved safety course. Young drivers can also benefit from the additional practice and guidance.
Choose a higher deductible. Opting for a higher deductible will reduce your premiums, but make sure you have enough cash to cover your share of a claim.
Take advantage of other discounts. Many companies offer telematics programs your family can use to demonstrate safe driving behavior and potentially earn a discount. In addition, some insurance companies offer discounts to college students who are studying away from their vehicle.
Good student discount FAQs
If you still have questions surrounding good student discounts, the answers provided below can help.
What GPA do you need for a good student car insurance discount?
It depends. Most car insurance companies require a GPA of 3.0 or better to earn a good student discount, but Allstate allows students to be eligible with a GPA of 2.7. Some auto insurers also allow students to qualify in other ways, such as a high class ranking.
How much can you save with a good student discount?
It depends. Good student discounts vary by company and state, but some insurers may offer savings of up to 25% for good grades. Most companies don’t disclose the exact discount amount, so you may need to ask your insurance agent.
How do you get a State Farm good student discount?
Ask your State Farm agent about the eligibility criteria in your state. They’ll guide you through the process of submitting the required documents. If the student is approved, your agent will apply the good student discount to your policy.
Do car insurance companies verify grades for their good student discounts?
Usually, yes. In most cases, your insurance company will ask for proof of your student’s academic performance before providing your family with a good student discount.
Rules vary by company, but you’ll likely need to supply a copy of the student’s report card.
Do homeschooled students qualify for a good student discount?
It’s possible. It depends on the car insurance company and your state, but you could qualify for a good student discount as a homeschooled student if you score well on a national standardized exam. Ask your insurance agent about the eligibility criteria.
CDC. "Teen Drivers and Passengers: Get the Facts."
Youth.gov. "Youth Most At Risk for Motor Vehicle Crashes."
Lindsay FrankelInsurance Writer
Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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