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.
Who Qualifies for a Student Discount?
Student car insurance discounts are typically available to young drivers (high school or college-aged) who meet specific criteria. The main qualifications include:
- Age & Status: Generally, students aged 16–24 who are full-time high school or college students (undergraduate or sometimes graduate). Students must be unmarried.
- Academic Performance: A “B” average (3.0 GPA) or higher is often required. Insurers may also accept equivalent achievements like being on the honor roll, dean’s list, or achieving top percentiles on standardized tests.
- Verification: Proof of grades is necessary. This can be a report card, transcript, or a letter of enrollment (for college students).
- Home-Schooled Students: Homeschoolers can qualify by providing standardized test scores (like SAT or ACT) in the top 20th percentile or a certification of academic achievement.
- Additional Criteria: Some insurers require students to be listed on their parent or guardian’s policy, and others may ask for a clean driving record (no recent accidents or violations).
Why do insurers offer these discounts?
Insurers view students who excel academically as responsible individuals, thus reducing the risk they pose on the road. They offer discounts as a reward for good habits.
Types of Student Discounts Available
Good Student Discount
The Good Student Discount rewards students with strong academic performance.
- Eligibility: Full-time high school or college students under 25 with a GPA of 3.0 or better, or equivalent achievements (honor roll, top 20% of the class, etc.).
- Typical Savings: Discounts typically range from 5% to 25%. For example, State Farm offers up to 25%, while GEICO’s discount is about 15%. The average discount is around 10–15%.
- How to Get It: Submit report cards or transcripts when starting the policy or adding a student driver, and again at renewal. If the grades fall below the requirement, the discount will be removed at the next renewal.
Distant Student Discount (Student Away at School)
If a college student lives more than 100 miles away from home and doesn’t take a car to campus, they may qualify for an away-at-school discount.
- Eligibility: The student must attend school 100+ miles from home and leave the car behind.
- Typical Savings: Expect a discount of 10%–30% for the student’s portion of the premium, depending on the insurer.
- How it Works: Notify the insurer that the student is away at school and does not use the vehicle. This reduces the frequency of use and, in turn, the risk.
- Verification: Provide proof of enrollment and the student’s college address.
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: After completing an approved driver education course or defensive driving class, young drivers can get discounts of 5% to 15%.
- Safe Driving Programs: Insurers may offer discounts for completing safe driving programs like State Farm’s Steer Clear or Allstate’s teenSMART.
How Much Can You Save?
Student discounts can result in significant savings, and the amount depends on the insurer, the discounts you qualify for, and your location. Here’s an overview:
- Good Student Discount: Save 10%–25%, with an average of 12%.
- Distant Student Discount: Save 10%–30%.
- Driver’s Ed Discount: Save 5%–15%.
Combining discounts (like good student and distant student) can result in up to 30% off or more.
How to Apply for a Student Discount
To secure these discounts, follow these steps:
- Ask During Quotes or Renewal: Mention that the driver is a student when getting a quote, and ask about available discounts.
- Provide Academic Documentation: Submit recent transcripts or report cards to prove eligibility.
- Show Enrollment (if needed): Provide proof of enrollment for college students.
- Submit Driver Training Certificates: If completing a driver’s ed or safe driving program, send the certificate to your insurer.
Ensure eligibility is maintained, and update your insurer with new grades or enrollment status at each renewal.
Frequently Asked Questions
Q: Who qualifies for a student car insurance discount?
A: Full-time students under 25 who maintain good academic standing and are typically unmarried. Most insurers require proof of grades or scholastic achievement.
Q: What GPA is needed for a good student discount?
A: A GPA of 3.0 or higher (a “B” average). Some insurers accept other forms of academic achievement, like being on the honor roll.
Q: Can homeschoolers get a good student discount?
A: Yes, home-schooled students can qualify. They may need to provide standardized test scores or a certification of academic achievement as proof.
Q: How much can a good student discount save on car insurance?
A: The discount typically saves 10% to 15%, but it can go as high as 25%. This can mean hundreds of dollars in savings.
Q: How do I get a student discount applied to my policy?
A: Simply request the discount when getting a quote or at renewal. Provide proof of grades or enrollment, and the insurer will apply the discount if you qualify.
Get a Quote Today!
Navigating student car insurance discounts can be tricky since every insurer handles things differently. If you want to save on your student driver’s insurance, 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 Illinois. We’ll help you find the discounts that fit your needs and budget.