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Discounts for younger drivers

Good student discount

Typical discount 5 percent to 15 percent

Available to: Full-time high school or college students (sometimes including recent graduates) who carry a 3.0 (B) grade point average or have achieved other certain academic criteria set forth by the auto insurance provider. 

Caveats: Homeschooled teen drivers may also be eligible based on the results of standardized exams.  Discount normally applies to bodily injury liability, property damage liability, PIP, medical payments, collision, and comprehensive coverages. Some insurers offer discounts as great as 25 percent.

Length: Typically renewable up to age 25.

Parent-teen driving contract discount

A discount of less than 5 percent.

Available to:  Teenagers who have signed a contract to follow certain rules regarding their driving, such as not driving with passengers or after a certain time of night. 

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Caveats:  Only certain insurers offer discount on liability coverages of the car the child is assigned to if this agreement is signed by both parent and teen.

Student away at school discount

Typical discount up to 10 percent

Available to: Parent or parents of a full-time student living 100 miles or more from home without a vehicle.

Caveats: Distance and discount vary by insurer. Discount may apply to liability coverages along with PIP, medical payments, collision, and comprehensive coverage on the vehicle assigned to the child. Parent may be required to list child at higher rate during school breaks.

Length: Renewable while child is away at school and under the age of 25.

Family / legacy discount

Typical discount 5 percent to 10 percent

Available to: Child establishing a new policy with the parent or parent’s auto insurance provider.

Caveats: There can be restrictions and certain eligibility rules.  For instance, USAA notes that the former dependent must have been insured on the parent’s policy for a minimum of three years, have a clean driving record and be less than 25 years of age.

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