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 14%.

Key Highlights
  • Most insurance companies require a minimum of a B average to qualify for a good student discount.
  • Drivers who want a good student discount should talk to their auto insurance agent.
  • The average good student discount is 14%, based on a Carinsurance.com analysis.
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Written by:
Heather Larson
Our Carinsurance.com team is made up of regular people with insurance policy needs, just like you. We just happen to know a little more about insurance than the average bear.
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Edited by:
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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Reviewed by:
Matthew R. Auer
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Industry Expert
Dr. Auer, an expert on how climate change challenges the way insurers model risk, is arch professor of public and international affairs and full professor of public administration and policy at University of Georgia. His research focuses on the politics of decision-making in the arenas of environmental protection, energy policy, and forest policy. His recent research considers social media as a space for influencing users’ perspectives of environmental risks.

What is a good student discount on car insurance?

A good student discount on auto insurance can lower premiums by up to 25%, but the average rate is 14%. Insurers give good student discounts to young drivers who can prove they earn a B average or higher via a report card or a transcript.

What is the average good student discount on car insurance?

The current average good student discount for car insurance is 14% based on a 2022 rate analysis. Insurers like State Farm, Geico, Allstate, Progressive, Nationwide, Farmers, Travelers, Auto-Owners and American Family all offer good student discounts.

How do I get a good student discount?

If you’re younger than 18, ask your parents’ insurer about good student discounts. They rank among the top discounts for teens. An insurance company representative may ask for a high school report card, a college transcript, copy of the dean’s list or other proof of your grades. Most insurers ask that you maintain a B grade point average.

Requirements for a good student discount

The requirements for a good student discount vary from insurer to insurer. The most requested requirement is proof that the teen maintains a B average in school, which can be verified with a report card, transcript or the young driver’s name on their dean’s list

Other scenarios may also qualify for an auto insurance discount. They include completing a driver education course or when the student attends school full time at a college or university at least 100 miles from home and does not bring a vehicle to school. In the case of homeschoolers, they must score in the top 20% on certain standardized tests like the PSAT, SAT or ACT.

Learn more about car insurance discounts for students

Which companies offer good student discounts?

The following insurers give good student discounts: Allstate, Geico, Liberty Mutual, Nationwide, Progressive, State Farm and USAA. The discounts available for teens and young adult drivers vary based on each insurance company.

Allstate’s good student 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.

American Family’s good student discount

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’s good student discount

Students between the ages of 15 and 25 enrolled full-time in either high school or college qualify for the 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.

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. 

Farmers Insurance good student discount

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 15% — 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.

Kemper’s good student discount

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.”

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 10%.

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’s good student discount

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%.

Liberty Mutual’s good student discount

Parents, teens and young drivers may receive a good student discount if their GPA is a B or higher. Liberty Mutual also offers a Student-Away-at-School discount for students who only drive when they’re home from school. These discounts may not be available in every state; only the ones where state laws and regulations allow them.

Nationwide’s good student discount

According to Nationwide’s website, they offer 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’ good student discount

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 card.
  • Honor roll certificate or a newspaper article listing honor roll members.
  • A certification signed by a parent and by a home-school certifying representative for home-schooled students.
  • Printout from the parent’s access account that shows the student’s name

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.

How long does a good student discount last?

A good student discount stays in effect for different lengths of time, depending on the insurance company. Typically, insurers provide the discount through the early to mid-20s.

Loretta Worters, vice president of the Insurance Information Institute, says a good student discount lasts as long as the teen driver is in school. In addition, a student must maintain a B average or better, not get into an accident and cannot take their vehicle to college.

How much can I save with a good student discount?

According to IRMI, formerly International Risk Management Institute, Inc., an insurance risk educator and publisher, good student discounts can range from 5% to 15%. State Farm says good student discounts go as high as 25% on their site, but 25% is high – the average is 14%.

“It all depends on the insurer,” Worters says.

FAQ: Good student insurance discount

How do you apply for a good student discount?

When your young driver maintains a grade average of B or higher, contact your insurance agent or a company customer service representative. They should already be aware that the teen got their driver’s license. Then, gather the proof needed to verify the good grades like a report card, transcript or a letter from the school’s dean.

What GPA do you need for a good student discount on car insurance?

Most insurance companies require a minimum of a B average to qualify for a good student discount — a 3.0 or higher.

“Many insurance companies accept multiple forms of validation of GPA, such as a grade transcript and/or a form signed by a school administrator. Relevant information Is typically found on the carrier’s website,” says Matthew Auer, dean of the School of Public and International Affairs at the University of Georgia.

How much will a good student discount lower my rate?

The amount of your rate decrease depends on a few factors: Whether your teen has his own insurance policy or has been added to yours, the state where you reside, model and make of the car the teen drives and the coverage limits. As always, your insurance rate depends on personal factors like your driving record, age, vehicle make/model and location.

Are there other ways for students to get cheap car insurance?

Yes. Maximize the insurance discount by shopping around. Look for insurers that reward owners of new vehicles, drivers with spotless records, a telematics device that tracks driving data, students attending school 100 miles or more from home without a vehicle and pay-per-mile insurance. 

Furthermore, a clean driving record goes a long way in lowering insurance premiums. If you are a teen driver with a separate policy from your parents, it will be cheaper to be added to a parent’s policy.

Final thoughts on good student discounts

Studying and getting good grades can pay off in many ways. Over time, an education pays off by preparing a student for a great career with many opportunities. The immediate payoff is a reduction in insurance premiums by qualifying for the good student discount.

Resources & Methodology

Sources

  1. EiInsurance. “Car insurance for teens.” Accessed December 2023.
  2. IRMI. “Good student discount.” Accessed December 2023.
  3. CNBC. “Cheapest car insurance companies for college students.” Accessed December 2023.
  4. Allstate. “Car insurance discounts.” Accessed December 2023.
  5. American Family Insurance. “Student discount for car insurance.” Accessed December 2023.
  6. Amica Insurance. “Car insurance discounts.” Accessed December 2023.
  7. Auto-Owners Insurance. “Ways to save on auto insurance.” Accessed December 2023.
  8. Farmers Insurance. “Available insurance discounts.” Accessed December 2023.
  9. Geico. “Savings on auto insurance.” Accessed December 2023.
  10. Kemper Insurance. “Kemper auto discounts.” Accessed December 2023.
  11. Liberty Mutual. “Car insurance discounts.” Accessed December 2023.
  12. Nationwide. “Good student.” Accessed December 2023.
  13. Progressive. “Auto insurance discounts.” Accessed December 2023.
  14. State Farm. “Save more with our auto insurance discounts.” Accessed December 2023.
  15. Travelers. “Good student discount for car insurance.” Accessed December 2023.
  16. USAA. “Good student discount.” Accessed December 2023.

Methodology

CarInsurance.com commissioned Quadrant Information Services to pull rate data for auto discounts in 2022 across the U.S. for drivers with full coverage insurance. The good student discount average was calculated using insurance rates for 18-year-old drivers.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Our Carinsurance.com team is made up of regular people with insurance policy needs, just like you. We just happen to know a little more about insurance than the average bear.