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%.
- Most insurance companies require a minimum of a B average to qualify for a good student discount.
- Allstate, State Farm, USAA, Farmers, Geico and Nationwide offer good student discounts.
- The average good student discount is 12.5%, based on a Carinsurance.com analysis.
What is a good student discount on car insurance?
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. A good student discount on auto insurance can lower premiums by up to 25%, but the average rate is 12.5%.
What is the average good student discount on car insurance?
The current average good student discount for car insurance is 12.5%. Insurers like Allstate, State Farm, USAA, Farmers, Geico and Nationwide 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, a 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 discountThe requirements for a good student discount vary from insurer to insurer. However, the most common requirements include the following:
- Between the ages of 16 and 25
- Not married
- Enrolled full-time in high school or college
- Meets certain academic standards:
- Maintains a ‘B’ GPA or better
- Has a 3.0 GPA or better
- Ranks in the top 20% of the class
- Ranks in the top 20% on national standardized testing (SAT, ACT, PSAT, etc.)
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 school’s 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?
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 Mutual | $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% |
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. 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’s good student discount
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 good student discount
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’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.”
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’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%.
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’ 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 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%.
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, avoid accidents 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 12.5%.
“It all depends on the insurer,” Worters says.
Why do young drivers face higher car insurance costs?
In general, young drivers pay the highest car insurance premiums. Newly licensed drivers lack experience behind the wheel and have an increased risk of accidents. According to the CDC, young drivers between the ages of 16 and 19 have the highest crash risk out of any other age group. Because young drivers are much riskier to insure than adults, insurance companies charge higher rates.
Are home-schooled students eligible for a good student discount?
Some homeschooled students may be eligible for a good student discount, but it depends on the car insurance company. For example, Nationwide’s website says that homeschooled students can use their standardized testing scores to qualify for the discount. If the student scores in the top 20% of the test’s national performance, they can get the discount.
To find out whether your car insurance company offers a good student discount to homeschooled students, you should contact an agent.
What is homeschooling?Homeschooling means that a student is receiving education at home, rather than in a traditional school or classroom setting. Typically, parents are responsible for teaching their students at home. Some states have a certain curriculum that is required for homeschooled students with state-mandated subjects. Depending on the state, homeschooled students may also be required to participate in state assessment testing.
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, car make/model and coverages. 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.
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.
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.
Resources & Methodology
Sources
- EiInsurance. “Car insurance for teens.” Accessed July 2024.
- IRMI. “Good student discount.” Accessed July 2024.
- CNBC. “Cheapest car insurance companies for college students.” Accessed July 2024.
- Allstate. “Car insurance discounts.” Accessed July 2024.
- American Family Insurance. “Student discount for car insurance.” Accessed July 2024.
- Amica Insurance. “Car insurance discounts.” Accessed July 2024.
- Auto-Owners Insurance. “Ways to save on auto insurance.” Accessed July 2024.
- Farmers Insurance. “Available insurance discounts.” Accessed July 2024.
- Geico. “Savings on auto insurance.” Accessed July 2024.
- Kemper Insurance. “Kemper auto discounts.” Accessed July 2024.
- Liberty Mutual. “Car insurance discounts.” Accessed July 2024.
- Nationwide. “Good student.” Accessed July 2024.
- Progressive. “Auto insurance discounts.” Accessed July 2024.
- State Farm. “Save more with our auto insurance discounts.” Accessed July 2024.
- Travelers. “Good student discount for car insurance.” Accessed July 2024.
- USAA. “Good student discount.” Accessed July 2024.
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.
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