Students can save on car insurance through special discounts like good grades, completing driver education courses, and living away at school. For example, maintaining a “B” average (3.0 GPA) can earn a good student discount of 10%–25%, potentially saving hundreds of dollars annually.
Other discounts are available for safe driving programs and when a student driver lives over 100 miles from home without a car. In short, responsible students are viewed as lower-risk, which results in lower insurance rates.
Call 773-202-5060 to learn more or get a quote.
New Student Car Insurance Discounts in Illinois (Chicago Tips)
Illinois student drivers face some of the highest insurance rates in the country, particularly in Chicago and surrounding suburbs. Teen drivers on a parent’s policy average $2,500-$4,500 annually, while college-age students (20-24) pay $1,800-$3,500 per year depending on location and vehicle type.
Chicago-area students pay 15-25% more than downstate due to higher vehicle theft (29,000+ in 2023), dense traffic accidents, and elevated repair costs. However, student discounts can offset these costs substantially—good student discounts alone save $200-$800 per year. Combining multiple discounts (good student + away-at-school + driver’s ed) can reach 30-40% total savings, potentially $800-$1,500 annually.
Chicago-Specific Situations:
- Attending Chicago universities (DePaul, Loyola, UChicago, UIC, Northwestern): Most discourage freshmen cars due to parking costs ($200-$400/month) and CTA access. Leaving your car in the suburbs qualifies you for away-at-school discounts.
- Commuting students: Local college students living at home don’t qualify for away-at-school discounts, but good student and driver’s ed discounts still apply.
- Out-of-state students: Coordinate with your parents’ insurer about maintaining coverage while attending Illinois schools.
If you’re adding a child to your car insurance policy, knowing which discounts apply can make the difference between affordable and unmanageable premiums.
Who Qualifies for a Student Discount?
Student car insurance discounts are available to young drivers who meet specific criteria:
Age & Status: Generally ages 16–24, full-time high school or college students (undergraduate or sometimes graduate). Most insurers require unmarried status.
Academic Performance: Minimum 3.0 GPA or “B” average. Insurers also accept honor roll, dean’s list, National Honor Society, or top 20% class ranking.
Verification: Proof required when applying and at each renewal—report cards, transcripts, or enrollment letters showing GPA.
Home-Schooled Students: Qualify by providing standardized test scores in the top 20th percentile (SAT 1200+, ACT 24+) or academic achievement certification.
Additional Criteria: Some insurers require students to be on a parent’s policy and may ask for a clean driving record (no recent accidents or violations).
Why offer these discounts? Students who excel academically are statistically lower-risk drivers with fewer accidents and violations, making them cheaper to insure.
Types of Student Discounts Available
Insurance companies offer several discount categories specifically for student drivers. Understanding what’s available helps you maximize savings by qualifying for multiple discounts simultaneously.
| Discount Type | Eligibility & Proof Required | When It Applies |
|---|---|---|
| Good Student (10-25% savings) | 3.0 GPA or B average, ages 16-25, full-time student. Proof: transcript, report card, or dean’s list letter | High school, college undergraduate, some graduate programs |
| Away at School (10-30% savings) | School 100+ miles from home, car stays at home. Proof: enrollment verification, school address | College students only (not high school boarding students in most cases) |
| Driver’s Education (5-15% savings) | Complete approved driver’s ed or defensive driving course. Proof: completion certificate | New drivers, typically under 21; may apply to older drivers taking defensive driving |
| Safe Driving Program (5-10% savings) | Complete insurer-specific programs (State Farm Steer Clear, Allstate teenSMART). Proof: program completion certificate | Teen and young drivers under 25 |
These discounts are not mutually exclusive—you can often qualify for multiple discounts simultaneously, which is where real savings accumulate. For example, a college freshman maintaining a 3.5 GPA while attending University of Illinois Urbana-Champaign (120 miles from their Chicago-area home) without bringing their car could stack both good student (15%) and away-at-school (25%) discounts for a combined 40% reduction on their portion of the family policy.
If your family has multiple vehicles, exploring multi-car insurance discounts in combination with student discounts can lead to even greater savings.
Updated Good Student Discount Requirements (GPA, Age, Proof)
The good student discount is the most valuable discount available to student drivers. Here are the specific requirements:
Good Student Discount Requirements:
- Minimum GPA: 3.0 cumulative GPA or “B” average. Some accept 3.0 semester GPA if cumulative is slightly lower.
- Age Range: Typically 16-24 years old. Some insurers extend to age 25.
- Enrollment: Full-time student (12+ credit hours for college, full course load for high school).
- Policy Status: Must be listed on a parent/guardian’s policy (some allow students with their own policies).
- Driving Record: Many require no at-fault accidents or major violations in past 12-36 months.
- Proof: Submit academic documentation when claiming discount and at each renewal.
Equivalent Achievements Accepted: Honor roll, dean’s list, top 20% class ranking, National Honor Society, SAT 1200+, ACT 24+, or academic scholarships.
Graduate Students: State Farm, GEICO, and Progressive extend discounts to graduate students under 25 maintaining required GPAs.
If Your GPA Drops: The discount is removed at your next renewal. You can reapply by submitting updated transcripts once your GPA improves. Some insurers offer one-semester grace periods.
Distant Student Discount (Student Away at School)
If a college student lives 100+ miles from home without bringing their car to campus, they qualify for substantial away-at-school discounts—often larger than good student discounts.
Eligibility: Student attends school at least 100 miles from home and leaves the insured vehicle at home. May have occasional access during breaks.
Typical Savings: 10–30% on the student’s portion of the premium (average 20-25%). The student is reclassified as an occasional driver, reducing risk and premium.
Verification Required: Proof of enrollment showing school address and distance from home—housing contract, enrollment letter, or registrar confirmation.
If Student Has Car at School: Away-at-school discount doesn’t apply. You may save by changing the vehicle’s garaging address to the school ZIP code if rates are lower, or dropping collision/comprehensive on older vehicles used at school.
Driver’s Ed or Safe Driving Program Discounts
Insurance companies offer discounts for young drivers who complete driver education or safe driving programs.
Driver Education Discount: Completing an approved 30-hour driver’s ed course (classroom + behind-the-wheel) earns 5-15% discounts. In Illinois, courses must be approved by the Illinois Secretary of State. Most high schools and private driving schools offer approved programs.
Defensive Driving Discounts: 4-8 hour defensive driving courses teaching accident avoidance earn 5-10% discounts. Unlike driver’s ed (for new drivers), defensive driving benefits drivers of any age.
Safe Driving Programs: Insurer-specific programs offering completion discounts:
- State Farm Steer Clear (5-15% discount)
- Allstate teenSMART (one-hour online course)
- GEICO SmartDriverCourse
These programs cost $0-$50, can be completed online in hours, and discounts typically apply for 3 years or until age 25.
New Cheap Car Insurance for Students in Chicago: 5 Ways to Lower Cost
Beyond student-specific discounts, Chicago-area students can use these strategies to reduce insurance costs:
1. Compare Multiple Insurers: Premiums for young drivers vary by $1,000+ annually between companies. Get quotes from at least 3-5 insurers, specifically mentioning student status and eligible discounts.
2. Choose the Right Vehicle: The car dramatically impacts costs. Consider sedans over SUVs, high-safety-rated vehicles (IIHS Top Safety Pick), cars with modern safety features, and avoid 2015-2022 Kia/Hyundai models (high theft rates). A 2015 Honda Civic costs significantly less to insure than a 2020 BMW 3-Series.
3. Increase Deductibles Strategically: For vehicles worth $8,000 or less, raise deductibles from $500 to $1,000, or drop collision/comprehensive entirely. Savings: $400-$800 per year.
4. Usage-Based Insurance (Telematics): Programs monitoring driving behavior through apps reward safe habits with 10-30% discounts. Options include State Farm Drive Safe & Save, Progressive Snapshot, GEICO DriveEasy, and Allstate Drivewise. Only enroll if you’re a genuinely careful driver.
5. Stack All Discounts: Beyond student discounts, add multi-car (10%), home/renters bundling, paperless (3%), loyalty, and affinity discounts. Stack good student (15%) + away-at-school (25%) + multi-car (10%) + paperless (3%) = 40-50% total savings.
How Much Can You Save?
Student discounts result in significant savings depending on the insurer, discounts qualified for, location, and base premium:
| Discount Type | Typical Percentage | Dollar Savings (on $2,500 Premium) |
|---|---|---|
| Good Student | 10%–25% (avg 12-15%) | $300-$625 per year |
| Distant Student | 10%–30% (avg 20-25%) | $500-$750 per year |
| Driver’s Ed | 5%–15% (avg 8-10%) | $200-$250 per year |
| Safe Driving Program | 5%–10% (avg 6-8%) | $150-$200 per year |
Stacking Multiple Discounts: Real savings come from combining discounts. Good student (15%) + away-at-school (25%) = 40% total, or $1,000 savings on a $2,500 annual premium. Add driver’s ed (10%) and total savings reach 50%, or $1,250 per year.
Insurer Examples: State Farm offers up to 25% for good students. GEICO typically offers 15% but has competitive base rates. Progressive offers 10-15% with strong telematics programs. Compare actual final quoted premiums after all discounts, not just discount percentages.
How to Apply for a Student Discount
To secure student discounts, follow these steps:
1. Ask During Quotes or Renewal: Specifically mention you have a student driver and ask about available discounts—good student, away-at-school, driver’s education, and safe driving programs.
2. Provide Academic Documentation: Submit recent transcripts or report cards proving GPA requirements. Most insurers accept emailed PDFs or photos—physical copies rarely needed.
3. Show Enrollment Verification: For away-at-school discounts, provide proof showing school address 100+ miles from home—housing contract, registrar letter, or enrollment verification.
4. Submit Driver Training Certificates: Send completion certificates showing course name, date, student name, and (for driver’s ed) Illinois Secretary of State approval.
5. Update at Each Renewal: Most insurers require updated proof every 6-12 months. Set reminders to submit documentation proactively—don’t wait for notices.
6. Monitor Your Policy: Review your policy declarations after submitting to confirm discounts were applied. If missing, call immediately to resolve.
Compare student discounts in Illinois—get a quote in minutes. Call 773-202-5060 or get your free quote online to see exactly how much you can save with good student, away-at-school, and other discounts.
New What Proof Do Insurers Ask For? (Transcript, Enrollment, Residency)
Insurance companies require specific documentation to verify eligibility. Understanding what they need helps avoid delays.
Good Student Discount Proof Requirements
Acceptable Documentation:
- Report card: Most recent semester showing courses, grades, and GPA
- Transcript: Official or unofficial showing cumulative GPA (registrar PDF or student portal printout)
- Dean’s list/honor roll letter: Official confirmation of academic achievement status
- Grade report: Student portal screenshot showing name, school, and GPA
- Academic awards: National Honor Society, scholarships, or achievement certificates
- Test scores (alternative): SAT 1200+ or ACT 24+ for students with GPA below 3.0 or home-schoolers
Format: Most accept emailed documents (PDF, JPG, PNG), uploaded via website/app, or faxed. Ensure legibility and that documents show student name, school, term, GPA, and date.
Away-at-School and Driver’s Ed Proof
Away-at-School: Enrollment verification letter, housing contract/lease, tuition bill, or student ID showing school address 100+ miles from home. Some insurers verify distance themselves using the school name.
Driver’s Education: Completion certificate showing student name, course name, date, and Illinois Secretary of State approval. Some insurers apply discounts during enrollment before completion.
Frequently Asked Questions
New How do I qualify for a student car insurance discount?
You qualify by being a full-time student (typically ages 16-25) who maintains a 3.0 GPA or better, completes driver’s education, and/or attends school 100+ miles from home without a car. Proof of eligibility (transcripts, enrollment verification, certificates) must be submitted to your insurer.
New What GPA do you need for a good student discount?
Most insurers require a minimum 3.0 GPA or “B” average. Some accept equivalent achievements like honor roll, dean’s list, or top 20% class ranking even if your GPA is slightly below 3.0.
New Do all insurance companies offer student discounts?
Most major insurers (State Farm, GEICO, Progressive, Allstate, Farmers) offer student discounts, but the specific discount types, percentages, and requirements vary significantly by company. Always ask about available student discounts when shopping for insurance.
New Can college students get cheaper car insurance in Illinois?
Yes, Illinois college students can significantly reduce rates through good student discounts (10-25%), away-at-school discounts if attending school 100+ miles from home (10-30%), and by being added to parents’ policies rather than buying their own coverage.
New Does living away at school lower car insurance?
Yes, if you attend school 100+ miles from home and leave your car at home, you can qualify for an away-at-school discount of 10-30% because you’re no longer a regular driver of the insured vehicle.
Who qualifies for a student car insurance discount?
Full-time students under 25 who maintain good academic standing (3.0 GPA or equivalent), are typically unmarried, and can provide proof of grades or scholastic achievement qualify for student discounts.
Can homeschoolers get a good student discount?
Yes, home-schooled students qualify by providing standardized test scores in the top 20th percentile (SAT 1200+, ACT 24+) or a certification of academic achievement from their home-school administrator documenting work equivalent to a 3.0 GPA or better.
How much can a good student discount save on car insurance?
Good student discounts typically save 10-25% on your premium, with an average around 12-15%. On a $2,500 annual student driver premium, this translates to $300-$625 in savings per year.
How do I get a student discount applied to my policy?
Request the discount when getting a quote or at renewal, then provide proof of eligibility (transcripts, report cards, enrollment verification, or course certificates). Update documentation at each renewal period to maintain the discount.
Get a Quote Today
Navigating student car insurance discounts can be complex since every insurer handles requirements differently. If you want to save on your student driver’s insurance in Illinois, call Insure on the Spot at 773-202-5060 or get a free quote online. Our agents are experienced in finding the best rates for young drivers in Chicago and throughout Illinois. We’ll help you identify all the discounts you qualify for and find coverage that fits your needs and budget.