DEFINITION of Good Student Discount
Good Student Discount is an auto insurance policy discount available to young drivers who earn good grades in school. The good student discount assumes that if a young driver is responsible when it comes to their studies, they are more likely to be a responsible driver. As a result, they (or their parents) deserve to pay lower insurance premiums since they are less likely than teens with poor grades to file a claim with the insurance company. Since teenage drivers face some of the highest insurance premiums due to their lack of driving experience and higher accident and traffic violation risk, a good student discount provides yet another incentive to do well in school: saving money.
BREAKING DOWN Good Student Discount
Insurance companies are free to decide whether to offer a good student discount and, if so, to set their own guidelines for those discounts. For example, one insurer might offer a 25% discount on premiums to full-time high school and college students who earn good grades, defined as a B average or higher, until age 25. Another insurer might offer a 15% good student discount to unmarried drivers with at least a 3.0 grade point average in high school or college.
Young Driver Premiums
Any insurer who offers a good student discount will want to see proof of good grades as a condition for applying the discount. For homeschooled students who can’t show a traditional report card, insurers may allow alternative proof, such as SAT scores that are in the top 20% of the national average.
While a good student discount is helpful, insurers say the best way for young drivers to keep their premiums low is through safe driving. Avoiding accidents and traffic violations means avoiding the steep increase in premiums that can accompany these events. Being added to a parent’s policy rather than having one’s own policy can also save young drivers money through the multi-car discount.
Males pay more than females across all age groups but for younger drivers the difference is even greater. According to DMV.org, statistically, male drivers younger than 25 are more likely to: Rack up traffic infractions, including everything from speeding tickets to serious violations like driving under the influence (DUI); avoid wearing their seatbelts; choose faster, flashier vehicles; drive with more passengers; drive more often than do females.
The group gives these tips to keep premiums down: Choosing a safe vehicle; getting on your parents’ insurance policy; opting for higher deductibles; completing driver’s education; leaving your car behind when you go to college.