CarInsurance.com Insights
- A good student discount saves an average of 12% on car insurance premiums, based on CarInsurance.com’s analysis via Quadrant Information Services.
- Most insurers require a B average (3.0 GPA) to qualify. Allstate is the most lenient, accepting a 2.7 GPA. Some companies also accept top-20% class rankings or standardized test scores as alternatives.
- The discount is available to full-time students, typically between ages 16 and 25 — though age caps vary by company. GEICO and Progressive cut off the discount at 23; Allstate, State Farm and USAA extend it to 25.
- Nationwide offers the highest average good student discount at 20%, according to CIC’s Quadrant data. Kemper and Travelers are at the low end at 6%.
- Homeschooled students can qualify at most major insurers — but instead of a report card, they typically need to score in the top 20% on a standardized test like the SAT, ACT, or PSAT within the past year.
Discounts are a great way to save money on your car insurance – and one of the best car insurance discounts is a good student discount. To get a good student discount, insurers usually require that the young driver maintain a B average.
By studying hard and keeping their grades up, teen and young adult drivers can pay less for insurance – which is important since adding a teen to a parent’s policy can skyrocket rates. Discounts for good grades average around 12%.
What is a good student discount on car insurance?
A good student discount is a premium reduction insurers offer to young drivers who maintain strong academic performance. Most companies require at least a B average — typically a 3.0 GPA — and proof of full-time enrollment in high school or college. The discount averages 12% across major carriers, based on CarInsurance.com’s analysis via Quadrant Information Services, though individual company discounts range from 6% to 25%.
Insurers treat grades as a proxy for responsibility. The logic: students who perform well academically tend to be more attentive and lower-risk behind the wheel. That translates into a measurable rate reduction — one of the more accessible discounts available to teen drivers and their families.
How do you qualify for a good student discount?
To qualify, you generally need to meet all of the following criteria:
- Be between the ages of 16 and 25 (age caps vary by insurer)
- Be enrolled full-time in high school, college, or a vocational-technical program
- Be unmarried (required by some but not all insurers)
- Meet the academic threshold — typically a B average or 3.0 GPA
To prove eligibility, most insurers ask for a report card, college transcript, honor roll letter, or dean’s list notification. Some also accept proof that you ranked in the top 20% of your class.
If your GPA is below a 3.0, Allstate is worth checking — they accept a 2.7 minimum. And if you don’t qualify on grades alone, some insurers offer alternative paths, such as completing an approved driver education course or attending school at least 100 miles from home without a car.
Sophie’s Tip
Ask your insurer how often you need to re-verify your grades. Most companies check at each renewal, so if your GPA dips, the discount may disappear at your next policy update.
Which companies offer good student discounts?
Most of the largest car insurance companies offer discounts for good students, including Allstate, State Farm, USAA, Farmers, GEICO and Nationwide.
However, the discounts available for teens and young adult drivers vary based on each insurance company. Additionally, the amount of money you can save will vary by the insurer.
For example, Nationwide has one of the best discounts for good students, with an average savings of 20%. State Farm and American Family also have solid good student discounts, with savings of 18% and 20%, respectively. Kemper and Travelers had the smallest average discounts of 6%.
Below, see the average annual car insurance rates for an 18-year-old male with full coverage – with and without a good student discount.
| Company | Average annual car insurance cost before discount | Car insurance cost after discount | Discount (%) |
|---|---|---|---|
| Nationwide | $6,160 | $4,939 | 20% |
| American Family | $4,443 | $3,626 | 19% |
| State Farm | $5,113 | $4,171 | 18% |
| Auto-Owners | $5,366 | $4,404 | 18% |
| Allstate | $11,060 | $9,420 | 15% |
| Amica | $10,834 | $9,554 | 12% |
| Farmers | $10,953 | $9,644 | 12% |
| GEICO | $5,394 | $4,894 | 9% |
| Progressive | $7,570 | $6,945 | 8% |
| Kemper Insurance | $4,774 | $4,494 | 6% |
| Travelers | $5,726 | $5,324 | 6% |
| USAA* | $3,367 | $3,132 | 7% |
*USAA is only available to military members, veterans and their families.
Allstate’s discount
Allstate says you may qualify for their smart student discount if you are younger than the age of 25, unmarried and have one of the following: A grade average of B- or 2.7, completion of the teenSmart driver education program or you attend a school at least 100 miles away from home.
Allstate encourages speaking with an agent to determine if you qualify and if, so how much the discount will be. Based on CarInsurance.com’s data, Allstate’s good student discount can reduce your premium by an average of 15%.
American Family’s good student discount
American Family has one of the best good student discounts, with an average savings of 19%.
When the young driver is attending high school, a two- to four-year college or university, an online program or vocational-technical school full time and getting solid grades, they may be eligible for a good student discount.
To qualify, a student must have a B average or rank in the upper 20% of the class. Appearing on the dean’s list, honor roll or a similar list showing academic achievement may also be a qualifier.
Homeschoolers may also be eligible for the discount if they’ve scored in the upper 20% on certain standardized tests within the last year.
Amica
Students between the ages of 15 and 25 enrolled full-time in either high school or college qualify for a good student discount if they also maintain a B average or higher.
Amica also offers discounts to full-time students who go away to school and don’t take a car and those who are younger than 21 and have completed an accredited driver education class.
Amica also rewards parents who have had their insurance for five years or more with their legacy discount available to drivers younger than 30. Good students save 12%, on average.
Auto-Owners’ good student discount
Auto-Owners offers up to 20% discounts on car insurance with its good student discount. The student must maintain a B or better average while attending high school or college full-time.
Another reduction in their insurance premium is available for students enrolled at a college or university at least 100 miles from home who don’t take their car with them.
When a permanent Global Positioning System (GPS) is placed in the vehicle the teen drives, they may be entitled to the Teen Driver Monitoring Discount.
On average, customers save 18% with Auto-Owners’ good student discounts.
Farmers Insurance
Farmers’ average good student discount is 12%. This insurer’s good student discount requires a 3.0 or higher GPA, proven by showing the company’s representative the student’s name on the dean’s list, honor roll, or that the teen scored in the top 20% of the class on a standardized test.
They also reward the insured if the student goes to school on a campus 100 miles or more from home and doesn’t have access to a covered vehicle while at school.
GEICO’s good student discount
GEICO’s good student discount is up to 9% — if you maintain a B average or better. If you’re a college student and belong to a fraternity, sorority or professional society, you might qualify for an additional discount. However, our data shows that GEICO’s average good student discount is on the low end compared to other insurers.
Kemper
Kemper says on its website, “being a full-time student requires focus and responsibility, two things that are also vitally important for safe driving. If you’re a full-time student with a 3.0 GPA or higher, you could save money on your auto insurance policy with Kemper Auto.”
In our analysis of good student discounts, Kemper had one of the smallest average discounts of 6%. However, if you have a high premium, a 6% discount could still help you save a fair amount on your monthly insurance costs.
Progressive’s good student discount
Similar language appears on Progressive’s website: “ A smart student makes you a smart shopper. Add a full-time student to your policy who maintains a ‘B’ average or better and we’ll add a car insurance discount.” The discount varies, but the average amount is 8%.
Other discounts include teen drivers (18 or younger) and distant student discounts for students 22 or younger who don’t have a vehicle at school.
State Farm
Although discounts vary by state, saving as much as 25% is possible by getting good grades with State Farm. That savings can last until the insured reaches the age of 25.
Homeschoolers may qualify for a good student discount by showing proof that they have taken specific national standardized tests within the last year and scored in the upper 20%.
According to our analysis, the average State Farm customer saves 18% with good student discounts, making it one of the best companies for student discounts.
Nationwide’s good student discount
Nationwide has the highest savings for good students, with an average discount of 20%, based on CarInsurance.com data.
According to Nationwide, the insurer offers a student discount for young drivers ages 16 to 24: “Drivers must be full-time high school or college students and maintain a minimum of a B average to qualify for good student discounts.”
Homeschooled students may qualify for a good student discount if they score in the top 20% of a standardized test like the PSAT, SAT or ACT.
Travelers
Teens and young adults enrolled in school full-time can qualify for the good student discount at Travelers Insurance. They must have a B average or the equivalent or score in the upper 20% of their class academically.
On their website, Travelers lists which documents can be used as proof of the “good student” status:
- Most current report cards.
- Honor roll certificate or a newspaper article listing honor roll members.
- A certification signed by a parent and a certifying representative for home-schooled students.
- Printout from the parent’s access account that shows the student’s name
We found that Travelers’ average good student discount is 6% for young drivers that meet the eligibility requirements.
USAA’s good student discount
To get a good student discount from USAA, students must be enrolled in high school, college, a university or vocational-technical school full-time and be younger than 25. Proof of good academic performance can be a report card or transcript showing a 3.0 or B average, a letter from the dean, an honor roll membership, appearing on the dean’s list or similar achievements.
The average good student discount from USAA is 7%. But remember, USAA is only available to military community members and their families.
Speak with a friendly agent and get your quote in minutes!
How long does a good student discount last?
The discount remains active as long as the student meets the eligibility requirements — typically through age 25, depending on the insurer. Most companies require you to re-verify grades at each policy renewal. If your GPA drops below the threshold, the discount is removed at renewal; if it recovers, you can reapply with updated documentation.
Some insurers have shorter age windows. GEICO and Progressive cap the discount at age 23. Allstate, State Farm and USAA extend it to 25. If you’re a graduate student, it’s worth asking your insurer — State Farm, for instance, covers PhD students through age 29.
The discount also ends if the student leaves school or drops to part-time enrollment.
How much can you save with a good student discount?
The average good student discount is 12%. In dollar terms, that translates to savings of roughly $148 to $780 per year, depending on the base premium, which varies significantly by insurer, state and the student’s driving record.
The range across major carriers runs from 6% (Kemper, Travelers) to 20% on average (Nationwide). State Farm’s maximum possible discount is 25%, though average savings are 18%. The discount is applied to the premium for the specific driver — so if a teen is listed on a parent’s policy, the reduction applies to the portion of the premium attributed to that driver.
According to IRMI (formerly International Risk Management Institute), good student discounts industry-wide can range from 5% to 15%, with outliers on both ends depending on the insurer and state.
“It all depends on the insurer,” Worters says.
Why do young drivers pay more for car insurance?
Teen and young adult drivers pay the highest premiums of any age group because they’re statistically the most likely to be involved in a crash. According to the CDC, drivers between 16 and 19 have the highest crash risk of any age group. Inexperience is the primary factor — new drivers haven’t yet developed the hazard recognition skills that come with years behind the wheel.
Because the risk is higher, insurers charge more. A good student discount is one of the few ways a young driver can actively reduce that cost without waiting to age out of the high-risk bracket.
Can homeschooled students get a good student discount?
Yes, at most major insurers — but the documentation is different. Since homeschooled students don’t have traditional transcripts or report cards with institutional GPA verification, most carriers accept standardized test scores instead. If the student scored in the top 20% nationally on the SAT, ACT, or PSAT within the past 12 months, that typically satisfies the academic proof requirement.
Insurers confirmed to accept homeschool students include Nationwide, American Family, State Farm, Allstate, Farmers and Travelers. GEICO does not explicitly mention homeschooling eligibility — contact an agent directly to confirm.
Frequently Asked Questions: Good student discounts
What GPA do you need for a good student car insurance discount?
Most insurers require a 3.0 GPA or a B average. Allstate is the exception, accepting a 2.7. Some companies also allow students to qualify by ranking in the top 20% of their class or on a standardized test, even if their GPA is below the threshold.
How do you apply for a good student discount?
Contact your insurer or agent and provide documentation — typically a report card, college transcript, honor roll letter, or dean’s list notification. You’ll need to re-verify your grades at each policy renewal to keep the discount active.
Does a good student discount apply to the student’s policy or the parent’s?
Both, depending on the situation. If the teen is added to a parent’s policy, the discount applies to the premium attributed to that driver. If the student has their own standalone policy, the discount applies to that policy directly.
What happens if grades drop below the qualifying threshold?
The discount is removed at the next renewal. If grades recover before that renewal, you can reapply with updated documentation and reinstate it. Most insurers don’t penalize mid-term for a grade slip — the adjustment happens at renewal.
Are there other ways for students to save on car insurance besides good grades?
Yes. Students attending school at least 100 miles from home without a car often qualify for a “distant student” or “away at school” discount — separate from the good student discount. Completing an approved driver education course, using a telematics program and being added to a parent’s policy rather than a standalone policy are other effective ways to reduce costs.
Resources & Methodology
Sources
IRMI. “Good student discount.” Accessed May 2026.
CNBC. “Cheapest car insurance companies for college students.” Accessed May 2026.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs
