Many carriers offer a good student auto insurance discount for full-time high school or college students. If the student is included in someone else’s policy like parents’, the savings are applied to that policy. Drivers must maintain at least B grade or be within the twenty percentile in standardized national or state tests, be below age 25 and not married to qualify for these discounts. Every company has their own rules and the discount amount ranges between 7 – 20% depending on the company and state.
State Farm, Allstate, GEICO, American Family, Farmers, Nationwide, Progressive, Travelers, Auto-Owners and Mercury are some of the companies offering good student car insurance discounts. Allstate offers the largest discount at 20% but this doesn’t mean they are the most competitive carrier for youngsters. On the other hand, State Farm offers 17% savings and it is one of the cheapest companies for young drivers.
Drivers under the age of 25 pay on average more than double for vehicle insurance in comparison to drivers in their 30s and this can be as much as three times for teenage drivers. That is why any discount they can get significantly reduces premiums. For example, a 10% discount would only reduce premiums $62 a year on average for basic liability only coverage but the same 10% often means around $184 a year for the same coverage when you are a teenager. The savings can go as high as $582 on average for a full coverage automobile insurance policy.
Students must meet certain qualification requirements to be classed as good student and get the discount and they are;
- They must maintain a B or 3.0 GPA. Students in honor rolls or within the top 20% in their class may be able to get the discount too.
- They must be enrolled in a full-time high school or college education.
- They must be between the ages of 16 – 25. Some companies have a lower upper limit of age at 24 or even 23 in case of Progressive.
- They must be single.
- Alternatively, they can qualify for the savings if they rank within the top twenty percentile on SAT, ACT, PSAT, PACT, TAP and other standardized tests in their states. This allows homeschooling students to qualify for the savings too.
Students or their parents (if they include a student in their policies) need to alert their auto insurance companies or agents when they qualify for good student discounts. Not only do they need to provide proof of their qualifications with a transcript or a report card but also they must maintain their grades. So, they need to inform the company each time they get their final report cards.
Some auto insurers may be expensive for young drivers that even with large good student discounts they may not be competitive enough. That is why it is extra important to shop around when you insure a youngster and find the best price in the end, rather than assuming the provider with the highest discount will be the cheapest.
There are other discounts to qualify when you are a student like a distant student discount when you are studying in a college that is more than 100 miles away from your parents’ home, safer driver savings when you pass an advanced driving course. Also, some companies may offer lower rates for students who are living on campus. Another effective way of reducing premiums for young drivers is to join telematics-based vehicle insurance programs.
Shopping around for the best rates should never be ignored at any age but it is extra important when you are considered high-risk and paying much higher rates than an average motorist. Finding the cheapest auto insurer for your circumstances doesn’t have qualification requirements and can offer much larger savings than any discount you can get.