A good student discount is a reduction of auto insurance premiums for a young driver who falls into the "good student" category of the insurance provider. The definition of a good student varies from one insurance company to another but in general it is a student who ranks in the upper 20 percent of his or her class, has a B average or 3.0 average or is on the Dean's list or honor roll.
A discount for a good student is based on the premise that good students are better drivers. Statistics have shown that students with higher grade point averages (GPA) tend to be more responsible when operating an automobile.
This discount normally applies to Bodily Injury and Property Damage Liability, Medical Payments, and Comprehensive and Collision coverages providing that each such youthful driver meets certain requirements.Insurance companies underwriting guidelines vary on how much the good student discount will be for those that meet their requirements but on average it is a 10 to 15 percent discount.
For example Geico offers a discount for young drivers who are full time students and between the agents of 16 and 24. The discount can be 10 to 15 percent if the young driver meets any of these requirements:
- B average prior semester,
- 3.0 grade point average (GPA),
- dean's list or honor roll,
- top 20% SAT or ACT score,
- top 20% PSAT score,
- home-schooled students may be eligible based on standardized exam results.
Nationwide Insurance notes that for their good student discount one can get up to a 15 percent discount on their auto insurance when your teen earns a B average or above on their report card.
In most states many of the car insurance companies offer discounts for drivers who are under 25, enrolled in high school or college and maintain a 3.0 grade point average or higher and it is referred to as a good student discount. How much the discount will be varies but tends to be around 10% and up to 15%.
When buying from CarInsurance.com we will ask you questions about a young driver when you are purchasing your policy (if the insurer offers a good student discount) and your discount will automatically be applied (if available).