Teen drivers typically are some of the highest risk drivers. This can make their auto insurance policies more expensive.
Finding a few discounts can help to reduce that cost to you. The good student discount is a popular option. It is available from numerous car insurance agencies. In short, it helps to provide a discount to teen drivers who maintain good grades. It applies to drivers who are in their teens and early twenties, most often for those who are still in high school or enrolled in college.
What Is This Discount?
The good student discount helps reduce car insurance premiums. Given that teen drivers cost a lot of money to insure, this discount can help a lot. The percentage ranges significantly from one insurer to the next. However, there are a few things to know about this coverage.
- The discount generally applies to students who receive good grades. This may be a B average or higher. Each insurer sets its rules for this component of the discount. Some insurers may base discounts on other factors, such as school attendance. Others use a Dean's List or honor roll list as proof of their eligibility.
- Some insurers use in-car tracking technology. This can help to show that the student is driving in a safe manner. The data transfers over the internet and provides information to the insurer.
- Most often, these discounts only apply when the student is in school. It may apply for a year after the student finishes school as well.
- Most often, these discounts only apply to drivers under the age of 25. Those enrolled in colleges over this age may not qualify for most programs.
- Home school children can often still qualify. Proof of good performance in a student's education is necessary to obtain this discount.
Why Give A Discount?
Studies show students with a high Grade Point Average typically have fewer accidents. They have fewer moving violations, too. This means they are safer drivers. As a result, car insurance companies offer these drivers discounts. However, if violations occur, they may lose this discount.
Not all auto insurance companies offer good student discounts. However, any teen driver should ask about them. This can help to reduce the overall cost of coverage significantly. Students can use this discount and others to help keep car insurance costs in line with their financial needs. This discount may be available even if the student is on their parent's policy.