You’ve been told that studying and being a good student will pay off. Car insurance providers, however, make you prove it. If you’re a high school or college student, or the parent of one, you’ve probably heard of the good student discount on car insurance.
When you add a teenage driver to a parent’s car insurance policy, their rates often increase, on average, by 130%. So, if you’re a parent, you might see your bill go up $2,000 more than a household without a teenage driver.
It’s more expensive to insure young drivers because they have less driving experience and tend to be involved in accidents, especially 16- to 19-year-olds. As a result, insurance companies see them as high-risk drivers and charge a higher rate to insure them.
- Most insurance companies require a minimum of a B average to qualify for a good student discount.
- To apply for a good student discount, alert your auto insurance company.
- The average good student discount is 14%, based on a CarInsurance.com analysis.
What is a good student discount on car insurance?
Insurers offer good student discounts to students who can prove they’re earning good grades with proof of eligibility, such as a college transcript or report card. Allstate, Geico, Progressive and other insurers provide discounts for students who can maintain a B average or above. These offers can lower your auto insurance premiums up to 25% — 14% on average.
What is the average good student discount on car insurance?
The average good student discount for car insurance is 14%, based on a 2022 CarInsurance.com rate analysis.
How do I get a good student discount?
If you’re younger than 18, you must ask a parent’s insurer about student discounts. Good student auto insurance discounts are among the top discounts for teens.
Which companies offer good student discounts?
The discounts available for teens and young adult drivers vary based on the company. Here are a few good student discounts from Allstate, Geico, Liberty Mutual, Progressive, State Farm and USAA.
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 with one of the following: A grade average of B- or 2.7 or above, completed the teenSMART driver education program or attends school at least 100 miles away.
Allstate encourages speaking with your agent to determine if you qualify and, if so, how much the discount will be.
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 in a fraternity or sorority or honor society, you might be able to get an additional discount.
They also offer discounts to alumni associates and if you’re a member of some college, university and student organizations.
Progressive’s good student discount
The same type of language on Progressive’s website: “A smart student makes you a smart shopper. Add a full-time student on your policy who maintains a ‘B’ average or better, and we’ll add a car insurance discount.”
It also notes that the average student discount varies – from teen driver discounts (18 or younger), good student discounts and distant student discounts for students 22 or younger who don’t have a vehicle at school.
State Farm’s good student discount
State Farm is refreshingly open about their good student discount. Its website says, “You can save up to 25% just to get good grades. And the savings last after you graduate from college until you turn 25.” You can save up to 25% with State Farm’s good student discount.
Liberty Mutual’s good student discount
Liberty Mutual website states, “Attention class: If you (or your student) have a GPA of B or better, we’re happy to reward your hard work with a discount on your policy.” Liberty Mutual also offers a student-away discount for college students attending school without a car.
Nationwide’s good student discount
According to Nationwide’s website, they offer a student discount for drivers ages 16 to 24. Drivers must be full-time high school or college students and maintain a minimum B average to qualify for good-student discounts.
USAA’s good student discount
USAA states that they have a good student discount and that you need to be a student younger than 25 and a full-time student maintaining a 3.0 or B average. The discount may not be available in every state.
FAQ: Good student insurance discount
How do you apply for a good student discount?
You must alert your insurer if your grade average is a B or higher. They will require proof of the grade average. You will need to do this every time your final grades are reported. It is up to you to let your insurance agent know that you qualify for this discount.
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.
How much will a good student discount lower my rate?
That depends on the insurer and your driving profile, whether a student drives while away at college and whether their vehicle has the latest safety features.
Are there other ways to get cheap car insurance for students?
Yes. A clean driving record goes a long way in lowering insurance premiums. You can get discounts for paying your policy in advance, using a telematics device, driving less, being a student away at school and taking a defensive driving course. 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.
The verdict on the good student discount
Studying and getting good grades can pay off in many ways. In the long run, it’ll help you get into a good college or vocational school and keep you on the path for having a fantastic career. But in the short run, one of the more immediate payoffs is a reduction in insurance premiums by qualifying you for a good student discount.
If your teen is maintaining a B average or better in school, do your wallet a favor: Call your insurance company to inquire about applying for the discount.
Resources & Methodology
NBC News. “How Much Does Adding a Teen Driver Increase Your Auto Insurance?” Accessed May 2022.
Car and Driver. “How To Save on Teenage Car Insurance: What You Need To Know.” Accessed May 2022.
Allstate. “Car Insurance Discounts.” Accessed May 2022.
Geico. “Car Insurance Discounts – Savings on Auto Insurance.” Accessed May 2022.
Progressive. “Auto Insurance Discounts.” Accessed May 2022.
State Farm. “Save more with our auto insurance discounts.” Accessed May 2022.
Liberty Mutual. “Car insurance discounts.” Accessed May 2022.
Nationwide. “Good student.” Accessed May 2022.
USAA. “Good student discount.” Accessed May 2022.
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.