Understanding Good Student Discounts
Every major carrier offers a car insurance discount for good students. It’s one of the easiest discounts to get, and this video will bring you up to speed about who it’s for and how it works.
Why do good students get a discount?
Insurance carriers know that young and inexperienced drivers are more likely to be involved in accidents, and parents know that adding a young driver to their policy means higher premiums for the same coverage. But statistics show that students who are doing well in school are relatively less likely to be involved in crashes than other young drivers, making them cheaper to insure. That’s why good students get a discount.
What’s a ‘resident student’ discount?
If you’re covered by your parents’ policy and won’t be driving much while you’re away at school, you may be eligible for a resident student discount. Carriers usually require that you live and study at least 100 miles from Mom, Dad and the car. Unlike the good student discount, a resident student discount doesn’t carry a grade point average requirement.
Who qualifies for a good student discount?
Insurance carriers set their own requirements, but in general to qualify for a good student discount the driver must be under 25 years old, enrolled full time in high school or college, and maintain a 3.0 or ‘B’ average.
How do you apply?
If you meet the requirements, getting a good student discount is as easy as calling your insurance carrier and submitting the proper documentation.
When can you apply?
You can receive a good student discount any time, even in the middle of an academic term, as long as you can prove your good grades for the most recent term completed.
What proof is required?
You’ll need to send the insurer a current report card to show that your GPA is high enough. Some carriers will also accept a letter from a school official as proof. Home-schooled students can prove their ‘good student’ status by performing well on a standardized test such as the ACT.
How long does the discount last?
A good student discount is generally available as long as you keep meeting the requirements. Insurers may even extend the discount past graduation, sometimes until the student turns 25.
Can you lose the discount?
You can lose your discount if your grades have fallen below the required average when report card time rolls around. Some insurers are more diligent than others about demanding fresh report cards to continue the savings. Even if you lose your good student discount, you can always get it back once you have your grades back up.
How much is it worth?
It pays to hit the books. Good student discounts range from 10-35% off your premiums,and can be combined with other types of discounts, like a good driver discount or a discount for having safety features like airbags on your car.
The bottom line
If you’re under 25 and in school with at least a 3.0 GPA, call your insurance carrier today and find out how to qualify for a good student discount.