Good Student Auto Insurance Discount

Vehicle insurance rates for young drivers are often significantly higher than those for drivers over the age of 25, primarily due to their age. This is attributed to several factors: they have a higher statistical likelihood of being involved in accidents, they lack the experience of older drivers, and there aren’t many saving opportunities for youngsters due to their lack of history. Specifically, drivers aged 16 to 19 are considered the highest-risk group of drivers. One discount available to young drivers or their parents is the “good student discount,” which can help reduce their car insurance premiums based on their academic grades.

Many automobile insurers provide a good student car insurance discount tailored for full-time high school or college students. Even homeschoolers can be eligible for discounts based on their achievements in standardized tests. To qualify, drivers typically need to maintain a minimum of a B grade or fall within the top twenty percentile in standardized national or state tests.

Keep in mind that each insurance company has its unique rules governing good student discounts, which can lead to variations in age limits and qualification requirements. The discount amount itself varies, generally ranging from 5% to 20%, contingent on the insurance company and state. According to a study by, the average good student discount is 14%.

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. The size of the good student discount offered by an insurance company doesn’t necessarily reflect their overall competitiveness for young drivers. Some insurers might provide significant good student discounts but still have higher base rates, making them less competitive in terms of overall pricing. State Farm is one of the cheapest companies for young drivers according to a ValuePenguin study. Also State Farm offers good student vehicle insurance discount until the age of 25 even if you finish your school as long as you finished with at least B grade.

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 better average grade. Students in honor rolls or within the top 20% in their class or standardised tests may be able to get the discount too.
  • Good student discounts in car insurance usually require the driver to be enrolled in full-time high school or college, but some insurance companies may offer these discounts to homeschoolers based on their academic achievements in standardized tests.
  • While some insurers may set the upper age limit for good student discounts at 24 or even 23, others extend this benefit until the age of 25.
  • 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.

It’s important for students or their parents (if the student is included in their policies) to proactively inform their auto insurance companies or agents when they become eligible for good student discounts. To qualify and continue receiving these discounts, they typically need to provide proof of their academic qualifications, such as a transcript or report card. Additionally, they must maintain their qualifying grades, which may require notifying the insurance company each time they receive their final report cards to ensure they continue to benefit from the discount.

Students may be able to get various other saving opportunities that can help lower their auto insurance premiums. These discounts include the distant student discount for those studying far from home, safer driver savings earned by completing advanced driving courses, and telematics-based insurance programs that offer discounts for safe driving behaviors monitored through devices or mobile apps.

For young drivers, some auto insurers may still be costly, even with significant good student discounts. Therefore, it’s crucial to emphasize the importance of shopping around for insurance coverage. Relying solely on the provider with the highest discount may not necessarily result in the most cost-effective option.

Shopping for the best rates is a practice that should not be overlooked, regardless of age. However, it becomes especially critical for high-risk individuals, like young drivers who often face substantially higher premiums. Finding the most affordable auto insurer for your specific circumstances can yield substantial savings, potentially surpassing the benefits of any discount you might qualify for.