How to Get Good Student Car Insurance Discounts (2022)
Updated June 15, 2022
Studying pays off in more ways than one when it comes to car insurance costs. As anyone who’s purchased insurance products in their teens and 20s knows, young drivers face the highest costs for car insurance. But with the good student discounts that many car insurance companies offer, students can save money and stay on the road affordably.
The easiest way to find a cheap car insurance policy is to do your own car insurance comparison. Comparing car insurance quotes helps you make sure you’re getting the most savings you can for comparable policies.
Good student car insurance discounts reward high school and college students who have good grades.
At least a B average is typically required.
Good student discounts are one way to defray the high cost of an auto insurance policy for teen drivers and young adults.
Most major car insurance companies offer several discounts to students in good academic standing. The more you’re eligible for, the more you can save.
Young drivers—especially those who have just started driving—almost always pay higher car insurance rates than older drivers do. That’s because young drivers have less driving experience, which translates into a higher risk of getting into an accident and filing a car insurance claim.
However, there are a few car insurance discounts that are offered specifically to students and other young drivers. The good student discount is one of them. Here’s how it works.
Car insurance costs are determined by risk. The insurance company determines how likely you are to file a claim and then calculates your premiums accordingly.
The good student discount assumes that if you’re responsible with your studies, especially if you’ve achieved placement on the honor roll or dean’s List, you’re more likely to be responsible behind the wheel, too. As a result, you’ll pay lower premiums than someone with poor grades. Some of the most common requirements for earning the good student discount include:
Marital status: Single
A B average, 3.0 GPA, or top 20 percent in your class, or ranking in the top 20 percent on the ACT, SAT, PSAT, TAP, PACT, California Achievement Test, or the Iowa Test of Basic Skills
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The car insurance company will want proof that you’re enrolled full-time and getting good grades. This will usually be a copy of your most recent high school or college report card or a transcript showing your GPA. The requirements vary between different insurance companies, so ask your insurer what they need.
Using a standardized test score instead? An official printout of your score and percentile should serve as solid proof.
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The good student discount isn’t the only way for full-time students to save on car insurance. One of the easiest ways is to just share your parents’ policy instead of getting your own. This can save you hundreds of dollars.
Another simple thing you can do is take driver training. Many insurance companies have safe driving courses for teens and young adults—they expand on what you covered in driver’s education. Maintain a safe driving record to keep the discounts coming.
Going out of state for school? If you’re leaving your car behind, you can qualify for an away at school discount from many insurers, which will give you some additional savings. These discounts recognize that you’re not going to drive much if you’re in another state for most of the year, making you a lower risk.
Many students join groups at school which can result in additional discounts. Talk to an insurance agent about whether your group affiliations can get you any more savings. Some of the most common ones include:
Sorority, fraternity, and honors society discounts: Some insurers, like GEICO, will give you a discount if you’re a member of certain fraternities, sororities, or honors societies. Your fraternity or sorority may also have information about applying for these discounts.
University and alumni discounts: Policyholders may be able to get a discount just for going to certain schools or being an alum of one. Not every university participates, though, so check with your insurance company or the university’s administrative office to see if this is an option for you.
Military discount: Many insurance providers give discounts to active and reserve military personnel. If you served, you may be able to get some car insurance discounts when you return to civilian life.
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Being a student is already expensive enough. It might seem impossible to save, but with auto insurance discounts and smart comparison-shopping, you too can find an affordable policy hassle-free. Start with an easy car insurance quote comparison to kickstart the savings. It only takes a few minutes—just enter some basic information and see the savings roll in!
Yes, but the process is a little tricker. Check with your insurer to see if kids who are homeschooled can qualify—some insurers, like Allstate and Nationwide, list this on their website. If they don’t, then ask the company directly. You may need to use the results from a standardized test instead of a report card to get a discount.
Sometimes, you can still get the discount if you have completed your two- or four-year degree. State Farm, for example, will let you get the discount up to age 25 as long as you can show a cumulative transcript that proves you meet the grade qualifications.
Yes, anyone whose car is in long-term storage can ask their insurance company to change their policy to comprehensive coverage only. This will protect your car from theft, vandalism, and the elements. However, you can’t legally drive like that, so you need to make sure your policy is reinstated before you get back on the road.
You’ll start seeing lower rates from the time the discount is applied until your policy needs to be renewed. You can keep getting the discount as long as you get good grades until you’re no longer a student or hit the age limit, which is typically 24 or 25.
Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.
Jennifer Pendell is a personal finance expert. She specializes in breaking down dense subjects to make them easier for consumers to understand, with a particular interest in homeowners, renters, and auto insurance concepts. She studied at the University of Iowa.Learn More