How Much Is the Good Student Discount for Car Insurance?

Posted May 24, 2021 by in Lifestyle

Being a student tends to be very overwhelming and stressful. You usually have to deal with student loans, bills, tuition, and many other expenses. Therefore, students try to find the best promotions and discounts available. Sometimes there are specific discounts made for students only, to make their journey less difficult.

If you are a student and you drive, you should not worry. The insurance industry has special discounts on car insurance for good students. Make sure to keep those grades high, and you will spend less money. Stick around so we can tell you more about this option!

If you would like to learn more about car insurance, check out this post.

What is The Good Student Discount?

Young drivers, mostly teenagers, do not have enough driving experience, which means they get into more accidents than older drivers. For this reason, they generally pay some of the highest insurance rates.

A good student discount is an excellent option offered to students who maintain good grades. They have lower car insurance premiums due to their success in school.

Responsible students who care about their grades are considered to be responsible in life in general. Therefore, insurance companies believe that these students are less likely to get into accidents because they will show some kind of responsibility while driving as well.

Students with poor grades do not have this option because they are not considered to be as reliable. The insurance companies are willing to reward good students with lower rates as a special discount.

How Does the Good Student Discount Work?

The majority of the insurance companies offer student discounts, but each company has its own terms and conditions. Several factors are affecting the eligibility of getting this promotion. The most common ones are the following:

Good Average Grade

Insurance companies set different requirements, including the minimum grade point average. This is the main factor, and students must bring evidence of their success. 

The proof could be a report card, transcript of records, or even your SAT results. Sometimes, certain companies will accept your request if you are in the top 20% of your class. This depends on the circumstances.

Age Range

Insurance companies also set a particular age range. Only students that belong to a specific age group are able to get this discount. 

The students eligible for this discount are usually between 16 and 25 years old. This means that both high school and college students can apply.

Completed Driver’s Education

This reason is pretty self-explanatory. Students must have a completed driver’s education in order to drive. This teaches them how to operate a vehicle more responsibly, and these students are less likely to file claims.

You Must Be a Full-Time Student

Whether you are a full-time student or not is determined according to your credits per year. Of course, this depends on your academic institution and its definition. 

Generally, these are students who take 12 units per semester, but this is not always the case. Moreover, full-time students go to school or college more than part-time students.

How to Apply?

Insurance companies do not check your grades suo-moto. It is your responsibility to inform your insurer that you are a good student with high grades.

Once you inform the insurance company, they will require proof, and this proof is generally provided to them at the end of every academic year. They need to make sure that your GPA has not changed over time.

How Much Can I Save?

Depending on the insurance companies, students can save a lot of money on their insurance premiums. The average is 7%, but some companies are willing to offer up to 30%.

For example, if your premium is $3000 per year, and you have a 7% discount, you will be saving $210 every year. However, if you find a generous company, and your student discount is 30%, you could save up to $900 a year, which is quite a sum for a student with a low income.

How Can I Find the Best Offer?

It is common knowledge that whenever you are shopping for something, you should never buy the first thing you find. The same goes for insurance. Make sure to explore your options and look at several quotes before you make a decision.

The difference in offers could be a couple of hundred dollars. Be smart about this, and do proper research.

However, if you find all of this too confusing, you can always hire an insurance broker like Surex to help you find the best discounts on the market. You will be connected with an assistant who will be there for any inquiries you might have. This choice will save you a lot of time and energy.

Whichever option you choose, keep in mind that you should be well-informed before making any decisions.

Other Ways For Students To Reduce Their Premium

There are several other ways in which students can lower their insurance premiums. We are bringing you two of the most common ones:

Away at School Discount

This discount is meant for those students who move away from home for college and do not take their car with them. The logic behind this is that if you leave your car at home while you are away, you are less likely to be driving it, which means there is less chance of you causing a car accident.

Stay on Your Parents’ Policy

Since insurance rates are the highest for those under the age of 25, one of the best options for students is to share a policy with their parents.

Students, being both young and inexperienced, have to bear the brunt of higher insurance premiums. Even though students have to pay a lot of money for their car insurance, there are ways to reduce the expense. Keep your GPA high and use this incredible opportunity you have been given. Follow the above tactics to secure a lower insurance premium.

*Photo by Zen Chung