Why Good Grades Matter to Your Auto Insurance Provider in 2024 (They Do Check!)
Wondering why good grades matter to your auto insurance provider? Responsible students often make more responsible drivers, so auto insurance companies often offer good student discounts of up to 25%. You must provide proof of grades to qualify for a good student discount.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
UPDATED: Dec 18, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Curious why good grades matter to your auto insurance provider? The principle is that good grades demonstrate a teen’s sense of responsibility, and the good grade insurance discount can be an incentive for young drivers to remain diligent at the study desk as well as behind the wheel.
Auto insurance companies will only check grades if you apply for the best good student auto insurance discounts. Most companies require a 3.0 GPA or higher and will require proof of good grades before issuing the discount.
Read on to learn more about auto insurance and grades. Need to find affordable teen auto insurance? Just enter your ZIP code into our free quote tool to begin today.
- Many car insurance companies offer a good student car insurance discount
- In a general sense, a GPA of 3.5 or above is considered a “good” grade
- Proof of grade generally has to be provided to qualify
Why Auto Insurance Companies Care About Grades
Good grades indicate a student’s focus and level of responsibility. So, while teens generally present a greater risk than other drivers, not all teens present the same risk.
Auto insurance companies care about grades because the more focused and responsible teens are at school, the more focused and responsible they will likely be on the road.Dani Best Licensed Insurance Producer
Parents and insurance companies alike want to motivate teens to excel, whether at school or on the road. A good student discount based on grades can be a powerful incentive.
Read More: Best Auto Insurance Discounts for Good Drivers
Having good goals at school can translate into other positive life goals, including safe driving, which is why companies with the best auto insurance for students offer a good student discount.
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How Auto Insurance Companies Verify Grades
Do insurance companies verify grades? Most auto insurance companies offer a discount on car insurance for good grades but require proof of qualification. Insurance companies can only access public information that is available to the DMV, and grades aren’t part of that.
Auto insurance companies will request proof of good grades before offering an insurance discount for good grades and then again during each renewal period.
The necessary documentation for a good student discount may be provided by fax, email, or online portal, depending on the company you insure with. Even if you initially qualify for the car insurance GPA discount, since proof is also required before renewal, there are three scenarios that can take place:
- A teen’s grades stay the same or go up. Maintaining a good GPA for car insurance means that you’ll likely continue to qualify for the discount upon renewal.
- A teen’s grades go down. Most companies will withhold the discount if the student’s grades have gone down. Make sure to ask about the details of the discount when purchasing the policy.
- A teen is no longer a student. If the teen drops out of school or graduates, the good student discount will no longer apply. At this point, you’ll want to explore the best auto insurance discounts.
For example, Geico good student discount verification requires a copy of a student’s grade average before applying the discount. Now that you know why auto insurance companies verify grades, read on to learn more about the specifics of a good student discount.
How to Qualify for a Good Student Insurance Discount
According to the Children’s Hospital of Philadelphia Research Institute, because of the risks associated with young drivers, insurance providers charge higher rates for policies for teenage drivers or families who list teens as drivers on their family policy. However, many companies help customers to reduce their rates by providing a good student discount.
The GPA is calculated based on a student’s letter grades, so for a GPA of 3.0 or higher, students would need to be getting all As and Bs on their report cards. An agent may not offer it up front but feel free to ask if it’s available and if your teen qualifies.
Take a look at the saving percentage of good student discounts at popular auto insurance companies below.
Good Student Discount Savings by Auto Insurance Company
| Insurance Company | Good Student Discount |
|---|---|
| State Farm | 25% |
| American Family | 25% |
| Allstate | 20% |
| Liberty Mutual | 20% |
| Farmers | 20% |
| Geico | 15% |
| Nationwide | 15% |
| Travelers | 15% |
| Progressive | 10% |
| USAA | 10% |
In these difficult economic times, parents may struggle to meet the rising cost of living, transportation, and education. Insurance companies that offer a car insurance discount for a student with a good GPA are helping parents meet these demands safely and successfully when adding a child to their auto insurance policy.
Read More: When should I add my child to my auto insurance?
Make sure you ask your agent about the availability of good student discounts to save on car insurance for high school students.
Why Auto Insurance is More Expensive for Teen Drivers
According to recent studies by the Centers For Disease Control And Prevention, the ages of 16-19 present the highest risk for traffic accidents, and the figures are even higher for males. The annual cost of the results of such accidents was estimated at almost $5 billion. It’s no wonder auto insurance companies charge a higher premium for teen drivers (Read More: 6 Reasons Auto Insurance Costs More for Young Drivers).
Teen drivers have the least amount of driving experience compared to all other demographics of drivers. It makes sense that the premiums would be higher for inexperienced drivers, as they are prone to more mishaps when navigating the road.
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Getting a Good Student Auto Insurance Discount With Good Grades
Remember to ask if the good student auto insurance discount is available and if your teen qualifies. Not all agents will mention this provision upfront, but they will check grades if you apply for a good student discount.
Encourage your teen drivers to maintain a GPA of 3.0 or higher, as this will ensure you continue to qualify for a good student discount on auto insurance.Brandon Frady Licensed Insurance Producer
Exploring available good student driver discounts is just as important as shopping for good rates and coverage. Regardless of whether you qualify for a Nationwide good student discount, Progressive good student discount, or State Farm good student discount, bringing proof of your grades is necessary.
Want to find the best auto insurance for new drivers? Compare car insurance quotes and find the most affordable car insurance for students with good grades today by entering your ZIP code into our free quote tool below.
Frequently Asked Questions
Why would high school grades matter to an insurance provider?
So, why do you think that most automobile insurers offer discounts based on good grades? Auto insurance companies may offer discounts or benefits to students who demonstrate good academic performance because they may see it as an indicator of a student’s responsibility and maturity.
However, not all companies consider grades as a factor in determining premiums.
How do auto insurance companies determine the student’s GPA for a good student discount?
Auto insurance companies typically require proof of a student’s academic standing to determine eligibility for a good student discount. This proof usually involves providing a copy of the student’s report card or transcript, demonstrating a specified level of academic achievement.
What are the typical good student discount requirements?
The specific requirements for a car insurance discount for good grades vary among insurance companies. However, common criteria for good student discounts for college and high school drivers include maintaining a minimum grade point average (GPA), such as a B or higher, being enrolled as a full-time student, and typically being under a certain age limit (Learn More: 10 Best Auto Insurance Companies for College Students).
What is a good student discount on car insurance?
A car insurance student discount can reduce car insurance premiums for young drivers who maintain high academic standards.
How much do grades affect car insurance rates?
How much grades affect insurance costs and the amount of savings depends on the insurance company and the specific policy. However, it’s common to see discounts ranging from 5% to 25% off the base premium for eligible students.
Is it necessary to provide updated grades for insurance policy renewal to maintain the good student discount?
Yes, many insurance companies require updated proof of academic standing at each policy renewal to continue receiving the good student discount.
They may request recent report cards or transcripts as proof of continued academic achievement (Learn More: When does my auto insurance renew?).
Does GPA affect car insurance rates?
Your grades do affect your car insurance rates, since most insurers provide a good student discount.
What GPA do you need for car insurance discounts?
Most insurance providers require a GPA of 3.0 or better for a driver to receive a good student discount. Because auto insurance rates are so high for young drivers, we recommend applying for the discount if you qualify (Read More: Auto Insurance Rates by Age).
If you’re getting a student discount on the car insurance, will they ask for the student proof after some time?
Yes, if you’re receiving a discount for maintaining good grades, your car insurance company will typically require periodic proof of academic performance to continue applying the discount.
What grades do you need to get a discount on car insurance?
To qualify for a discount on car insurance based on academic performance, most insurance companies typically require a GPA of at least 3.0, which is equivalent to a B average.
Does driving school lower insurance?
Yes, teens who also participate in driving school classes may be able to get a discount (Learn More: Best Driver’s Ed Auto Insurance Discounts).
Does the grades you have in school have anything to do with how much you or your parents pay for your car insurance?
Yes, your school grades may influence your auto premiums. Many insurance companies offer a good student discount, which can significantly reduce the cost of car insurance premiums for families with young drivers. Shop for cheap teen insurance today by comparing rates with our free tool.
Which auto insurance companies can help you get a discount on car insurance for good grades?
Several major auto insurance companies offer discounts on car insurance for good grades, commonly referred to as good student discounts:
- Auto Owners good student discount
- Liberty Mutual good student discount
- Geico good student discount
- Progressive good student discount
There’s also the AAA good student discount for a good GPA and the smart student discount with Allstate.
Does Geico have student discounts?
Geico provides a discount for students who maintain a “B” average or better. For younger drivers, completing a driver’s education course can also lead to savings on car insurance through Geico (Read More: Best Geico Auto Insurance Discounts).
How does being a student affect car insurance?
Car insurance for college students is typically higher than for older adults, because younger drivers are riskier to insure.
Is car insurance cheaper for students?
Young drivers face higher insurance premiums than older, more experienced drivers due to their higher risk of accidents. However, maintaining good grades can lower car insurance rates as it allows you to qualify for a good student discount for car insurance.
What is State Farm student away-at-college discount?
State Farm offers discounts for students away at school, making it one of the companies with the best auto insurance for college students. The discount is typically available to students who are under 25 years old and attending a college or university that is more than 100 miles away from their home.
If you are looking for the best car insurance for recent graduates from high school who are attending college, student-away discounts can help you save (Read More: Best Auto Insurance for a Student Away at College).
How much is a good student discount for car insurance?
So, how much is a good student insurance GPA discount? Most insurers offer discounts between 10% and 25% for students who meet their good student criteria, which typically means maintaining a B average (a GPA of 3.0 or higher) or being in the top 20% of their class.
Do all insurers offer discounts on car insurance for students with good grades?
No, not all auto insurance companies provide discounts on car insurance for good grades. It’s important to check with individual insurance providers to determine if they offer this type of discount and what their specific requirements are.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.