Good Student Discount: How Much You Can Save on Car Insurance

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Written by Eric Schad Edited by Nick Versaw

Updated March 30th, 2023

Make no misconceptions, car insurance for drivers under 25 is more expensive than any other age group. Regardless of the nature of your driving, car insurance companies deem you more at risk for accidents and filing a claim due to your lack of driving experience.

But with those high prices comes a silver lining if you’re willing to put in the time: a good student discount. Hitting the books is more than just a way to get into the college of your choice or your dream job — it’s a way to save money for the future. Discover how to qualify for a good student discount and how much you can potentially save.

What is a Good Student Discount?

A good student discount is a car insurance discount offered to full-time high school students or college students who maintain a B average — or a 3.0 grade point average — from year to year. The student must be between 16 and 24, but whether a student is in an undergraduate or graduate program doesn’t matter. Each school year, a student must reapply for this type of discount and provide proof of their grades to receive the discount.

A student car insurance discount applies to all types of insurance coverage, ranging from state minimum liability insurance to full-coverage car insurance.

From the insurer’s perspective, a student who gets good grades likely has a higher level of responsibility. This translates to less risk that a good student will get into an accident, receive a ticket, or file a claim. As a result, the insurer passes the savings onto the student in the form of an auto insurance discount.

Parents also benefit from a good student discount, which might incentivize students to study more diligently.

How Do I Qualify for a Good Student Discount?

As mentioned above, most car insurance companies offer a discount for full-time students that achieve a B-average. This should be relatively easy to accomplish for the majority of students because the average high school GPA is 3.15 — higher than the required 3.0. Alternatively, some insurers may also provide a discount for high school students on the honor roll or college students who make the dean’s list. However, the application process and the age range may vary slightly from insurer to insurer.

Regardless of your insurer, you’ll undoubtedly need either a report card or a school transcript to prove your eligibility for a good student discount. You can usually email or fax these documents, which should suffice as proof of eligibility.

Homeschooled students are also eligible for a good student discount in some instances, but proving their eligibility is different. For these students to get the discount, they usually have to show a standardized test score — such as the PSAT, PLAN, SAT 1, or ACT — that ranks in the top 20% nationally. Because most students don’t take these tests until their junior year or the age of 17, some homeschooled young drivers may not be eligible for the discount when they turn 16.

How Much Can I Save on Car Insurance Premiums?

As with any other type of car insurance discount, the amount that you’ll save on your car insurance policy with a good student discount varies. Insurance providers offer different rates, but on average, you can reasonably expect to save between 4-10% on your insurance costs.

Coupled with other types of discounts — such as a safe driver discount — you stand to save 25-30% off the price of your auto insurance policy.

Are Students Eligible for Any Other Discounts?

Both parents and students can save money with more than just a good student discount. Students, young drivers, and teen drivers can also save money through a number of other discounts, including:

• Defensive driver discount: When a student or young driver completes an accredited driver education or driving course, policyholders can get a discount of 10% on average.
• Student away at school discount: This one specifically applies to the car insurance rates for parents. If an insured student goes away to school more than 100 miles away from your home address and leaves their car at home, you might save around 5% to 20%, depending on the insurer.
• Good driver discount: Many car insurance companies offer discounts ranging from 10-30% if you remain accident-free and keep a clean driving record.
• Affinity discounts: A majority of insurers offer discounts that range from 3-20% for being a member of a fraternity or sorority, enrolled in a specific school, or part of an honor society. The requirements vary by insurer, so double-check with the insurance company to see if you or your child are eligible.

Which Car Insurance Companies Offer a Good Student Discount?

Because most car insurance companies offer a good student discount, you shouldn’t have any trouble finding one. Here are a few of the top insurers that offer a sizable discount for hitting the books.

Nationwide

How to Get a Good Student Discount: Nationwide offers a good student discount for drivers between ages 16 and 24 who maintain a B-average (3.0 GPA) as full-time high school or college students.

How Much You Can Save: Up to 15%

What Sets Them Apart: With almost 100 years in the insurance industry, Nationwide receives top marks for its easy-to-use app, customer service, and rates.

GEICO

How to Get a Good Student Discount: GEICO offers a good student discount for drivers between 16 and 25. The student must maintain a B-average, be on the honor roll, or be on the dean’s list.

How Much You Can Save: Up to 15%

What Sets Them Apart: Although GEICO doesn’t receive the same accolades for customer service as some other companies, it overcomes this with an award-winning app, an easy claims system, and more discounts than its competition.

Progressive

How to Get a Good Student Discount: The Progressive good student discount requires drivers to be full-time students in either high school or college who maintain a B-average. However, the discount is only available to students 23 and under.

How Much You Can Save: An average of 10%

What Sets Them Apart: Progressive is the third-largest insurer in the country, offering car insurance and other insurance products for customers coast to coast. It also has a generous accident forgiveness policy, as well as other coverage that may pertain to students, such as renters insurance.

State Farm

How to Get a Good Student Discount: Drivers who are under 25 and maintain a B-average, are on the honor roll, or make the dean’s list are eligible for the State Farm good student discount.

How Much You Can Save: Up to 25%

What Sets Them Apart: State Farm offers discounts for safe driving and additional discounts for young drivers that can offset the higher rates that students often face. The Illinois-based company also has an above-average customer satisfaction rating to go along with excellent travel and rental car coverage.

Allstate

How to Get a Good Student Discount: Allstate offers a good student discount to drivers who are full-time students, under age 25, and unmarried.

How Much You Can Save: An average of 20%

What Sets Them Apart: Besides the good student discount, Allstate also has plenty of other programs to help students save. The list includes the teenSMART driver training program, the student away at school discount, and more.

These aren’t the only insurance companies that offer good student discounts — insurers like American Family and Farmers do too. If you’re satisfied with your current insurer, contact them or your insurance agent to see if they offer it.

Get Rewarded for Hitting the Books

Whether you’re a college student looking for affordable auto insurance rates or the parent of a high school student who wants to make budgeting a little easier, a good student discount is an excellent way to save.

But don’t forget to shop around for cheap car insurance quotes to find additional savings. In just two minutes, you can get auto insurance quotes from some of the most reputable insurers in the industry. It’s quick, fast, and easy — if only studying for exams was this simple.

Eric Schad Insurance Writer

Eric Schad has been an expert content writer for nearly a decade. Before getting behind the keyboard, he worked in the finance and music industries. With eight years of writing experience in the automotive and insurance industries, he enjoys communicating information that makes shopping for car insurance a breeze. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.