It is expected that young drivers, such as teenagers, will pay more for auto insurance. Insurance companies view them as a higher risk due to their inexperience behind the wheel. Teenagers can, however, reduce the cost of their auto insurance by qualifying for a good student discount.
Most insurance companies provide car insurance discounts tailored to young drivers. You may pay less for insurance if you have good grades and complete a qualifying driver’s education course.
To help you know more about the good student insurance discount, we’ve put together this piece. In this article, we cover what a good student discount is all about, how much is student discount, how to get the discount as well as companies that offer good student discounts.
Let’s delve in!
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What Is a Good Student Discount?
The term “good student discount” refers to a discount on auto insurance policies available to young drivers who achieve good grades in school. According to research, students with higher grade point averages are more responsible when driving a car.
As a result, they are entitled to lower insurance premiums because they are less likely to file a claim with their insurance company than teens with poor grades. Because teenagers have some of the highest insurance premiums, student insurance discount provides an incentive to do well in school.
Auto insurance policies are purchased by consumers to protect themselves from damages caused by collisions and other events. To receive coverage, policyholders must pay regular premiums. In the event of an accident, drivers can file claims to reduce the costs of repairs and vehicle replacement.
Companies that provide this discount establish their own guidelines, such as the age range for which discounts are available, the minimum grade point average required to qualify, and any terms that may disqualify a student during an insurance period.
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Why Do Auto Insurance Companies Charge Young Drivers Higher Rates?
Automobile insurance providers want to reduce their financial risks. As a result, your premiums will increase the higher the risk you represent to an insurer. In contrast, if you drive safely, you should be able to get lower rates. For students, the situation is more difficult.
Insurance companies don’t assess their clients’ driving abilities, despite the fact that some young people are competent drivers. Instead, they compute an individual group of drivers’ average risk using equations. The length of your insurance and whether you’ve ever made a claim are a couple of the variables in these calculations.
Hence, due to their inexperience, students typically don’t have a good driving record. Insurance companies, therefore, see this inexperience as an additional risk.
How Much Is The Good Student Discount?
The average good student discount offered by four large insurance providers is shown below.
|Insurer||Good Student Discount|
How to Get a Good Student Discount?
The process for receiving a good student discount on your auto insurance is simple; the most crucial step is making sure your academic standing meets the requirements of your auto insurance provider. Here are specific instructions on how to get the student discount.
1. Get Good Grades
You must be in the top 20% of your class or have a B average or higher to be eligible for the student discount. Although, you shouldn’t be concerned if you had one subpar semester because this is typically based on your cumulative transcript. A different way to qualify is to receive a test score that places you in the top 20% nationally.
Full list of requirements for a good student discount:
- Age: 16-25
- Full-time enrolled in high school, college, or homeschooling
- One of the following:
- B or 3.0 GPA or top 20% in your class
- Rank top 20% on ACT, SAT, PSAT, TAP, PACT, California Achievement Test, or Iowa Test of Basic Skills
2. Shop Around for Quotes
Many auto insurance providers offer student discounts, and the procedure for determining your final cost after the discount is applied is the same as for any other auto insurance quote. Simply scan the form as you fill it out for a “good student” checkbox. However, keep in mind that student discount is only one factor in determining how much you’ll pay for car insurance.
3. Submit Proof of Your Good Grades
You must provide evidence that you are enrolled in school full-time and earning good grades after comparing prices and purchasing insurance. Though the specific requirement will vary by insurer, this is frequently a copy of your most recent high school or college transcript.
You can provide an official printout of your score and percentile if you’re choosing to qualify instead of using a standardized test. Anyone else should be able to apply at any time while they are still enrolled in school, with the possible exception of high school freshmen who may need to wait for their report cards.
You don’t even need to be enrolled in college to qualify for the student discount from companies, like State Farm. A cumulative transcript from your school is required to qualify for State Farm’s good student discount if you are under 25 and have completed a two- or four-year degree.
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What are the Requirements for a Good Student Discount?
You might need to provide your insurance provider with proof of eligibility in order to get the student discount. If you can demonstrate one or more of the following, an auto insurance provider may consider you to be a good student:
- A grade average of B or higher
- Good scores in standardized tests such as SAT, ACT, or PSAT
- Ranking in the top 20 percent of your class
- Honor roll or dean’s list
- Associate degree
- Bachelor’s degree
- Letter with your administrator’s signature testifying to your academic excellence
- Bear in mind that the discount rate may vary, depending on the insurance company.
Which Insurance Companies Offer Good Student Discounts?
The following companies are known for offering student insurance:
Allstate is a large car insurance company that offers student discounts. If you maintain a grade of B or higher, you can get a smart student discount of up to 25%. Additionally, Allstate’s Milewise program is another way for students to save money on auto insurance.
If you join the program, you will not have a fixed insurance payment. Instead, the company will calculate it based on your monthly mileage. This program is a better value than regular car insurance for low-mileage drivers such as students.
GEICO is renowned for its active use of the digital platform in addition to its coverage options. The company’s mobile app makes it easy for students to access details about their services, including the GEICO student discount. For the student discount, GEICO applies comparable standards. It does, however, offer a 15% lower discount rate. The driver’s education discount is another program it provides.
Also, some insurance policies offer discounts to young drivers who successfully complete a driver education course. Members of particular student organizations and alumni associations are also eligible for exclusive discounts from GEICO insurance.
3. State Farm
Like Allstate, State Farm offers up to a 25% annual discount if you qualify for the State Farm good student discount program. Although each state may have its own requirements, you must be a full-time student and have a grade point average of 3.0 or higher to qualify.
Also, State Farm has a Steer Clear program that gives younger drivers (under 25) additional discounts if they haven’t had any moving violations or accidents for which they were at fault in the previous three years. Through training modules, the program seeks to improve the drivers’ abilities.
You will have to self-log significant events while driving if you sign up. If you complete five hours of driving in at least ten trips without any problems, you’ll receive a discount. Additionally, the last State Farm program you could look into is the student-away discount. This discount was created by the company for students who only drive when they are not at school.
If you live on a college campus and don’t need a car to get around, you should think about applying to this program. The primary requirement is that you live at least 100 miles from your school.
In terms of cost, Progressive offers the most affordable auto insurance. Since students are typically viewed by insurance companies as inexperienced drivers who pose a greater risk for collisions. Companies charge them a higher insurance rate as a result.
To counteract this, Progressive offers a teen driver discount to drivers who are 18 years old or younger. Additionally, Progressive offers a good student discount. Under-23 full-time students may qualify for a special discount on their auto insurance. All you need is a grade point average of at least 3.0 and a B average.
The average discount is 10%, though state-by-state variations in discounts may occur. You must provide evidence of your grades for each term in order to apply for the discount.
Another discount provided by Progressive that varies depending on your state is the distance student discount. Full-time students 22 years of age or younger may apply for the distance student discount as long as they reside at least 100 miles from their school.
Because of the increased risk that young drivers face, their discount prices are higher. However, taking advantage of the good student discount will help you save money on insurance.
While a student discount is beneficial, insurers say that safe driving is the best way for young drivers to keep their premiums low. Keeping accidents and traffic violations to a minimum. You can access the student discount via GEICO, Allstate, Progressive, and State Farm.
FAQs – About the Good Student Discount
Yes! To be eligible for the student discount, you must have a B average or be in the top 20% of your class.
You can get a student discount if you have at least a B average or a 3.0 GPA.
With State Farm, students can save an average of 25% on minimum-coverage insurance. Student insurance from the company costs $71 per month.
From the moment the discount is applied until your policy is up for renewal, you can start experiencing lower rates. However, some insurance providers have an upper age limit for their good discounts; some stop at 24, while others do so at 25.
Yes! A printed copy of your most recent high school or college transcript is required by GEICO. Additionally, first-year college students can take a standard test and submit their percentile score to GEICO in order to apply for a student discount.
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