Many insurance companies will lower a student’s car insurance premiums if they get good grades. This is called a good student discount and often lowers premiums between 7% to 25%. Here we’ll cover what you need to know about keeping that good student discount.

Key Highlights
  • Many insurance companies will reduce their auto insurance rates if a student maintains good grades. 
  • Proof of grades will be needed by insurers. 
  • As a homeschooler, find out how to be eligible for a good student discount from your insurance agent. 
  • As a college student, you are eligible for a good student discount. 

How often will insurers check your report card?

You should expect to report your grades at least once a year or when final grades are reported at the end of a semester. It depends on the insurer, so check with your insurance agent.

If you don’t contact your insurer and send them your grades to continue getting your good student discount, your rates will increase.

How high do my grades have to be to get a discount?

While every insurer is a little different in how they handle things, generally, you’ll need one of four scenarios to be able to send to your insurer:

  • Proof that you’re in the top 20% of your class.
  • Proof that you have a grade average of a B or higher.
  • Proof that you have a grade point average of 3.0 (out of 4.0) or higher.
  • Proof that you were included in the Dean’s List or Honor Roll.

Do insurers check the legitimacy of grades reported?

Insurers will require proof of grades. That may be a copy of the report card, a transcript, or a letter from the principal or another school administrator. Whether insurers take any additional steps to verify the legitimacy of those grades is left up to the insurance company. If you have reported fake grades to your insurer and the fraud is discovered, they can void your good student discount and chargeback for the discount given.

I am homeschooled. How can I show proof of my grades?

As a homeschooler, you can still get a good student discount. But since you won’t have an official report card, you’ll have to show evidence of your abilities by taking a state or nationally-mandated test, such as the ACT, SAT, PSAT, TAP, PACT, California Achievement Test, Iowa Test of Basic Skills and so on. Ask your insurance agent how to qualify for a good student discount as a homeschooler.

Can I get a good student discount as a college student?

Yes. Many insurance companies’ good student discount is also available to all full-time college students under 25. As a college student, you will earn final grades at the end of each semester and report those to your insurance agent. In addition to the grade average, that will likely suffice as proof of being enrolled full-time.

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Contributing Researcher

Geoff Williams is a freelance journalist and author in Loveland, Ohio. He has been writing about insurance and personal finance since the mid-2000s. His work has appeared in numerous publications, including Life magazine, Ladies’ Home Journal, The Washington Post, CNNMoney, Entrepreneur, and U.S. News & World Report.