Ah, who doesn’t love the satisfaction of getting a good discount? 10% off those shoes that you really like? Done. 20% off a new jacket for winter? Excellent. 15% off the next book in the series you’re reading? Nice. But what about a magical auto insurance discount that can help you save on your teenager or young adult’s auto insurance?
Audience: Oooh, ahhh.
Now, now, before you start think that this is too good to be true (and refusing to ooh and ahh) let us explain. We’re talking about the “Good Student Discount” that many insurance carriers will offer for young drivers. It’s not a myth. It’s a real thing. And you can save on your soon-to-be skyrocketing auto insurance premiums!
What’s the Good Student Discount?
The Good Student Discount is meant to counteract the jump that many parents see in their auto insurance rates when they add a newly licensed teenager to their policies. Car insurance rates often go up when a teenager is added to an auto insurance policy because teenagers are more likely to be involved in car accidents than other age groups – it’s a result of their little experience and their proclivity towards daredevil-type behavior.
To help buffer the effects of these rising rates, many insurance carriers offer discounts for students who have good grades. That’s because a student with good grades is seen as being a lower risk than one with poor grades. And insurance companies like to reward people for having lower risk because they’re allergic to risk. Basically, they see an A or B student as less likely to have a car accident because they’re more likely to be a safe driver (and don’t forget, as a parent it’s your job to teach your teen safe driving habits.)
Does my teenager qualify for the Good Student Discount?
There are a few qualifications for a teenager or young adult to get the good student discount. The requirements, however, will probably vary from carrier to carrier.
For the most part, however, a good student must…
- Be less than 25 years old.
- Be a full-time high school, college, or university student (although some carriers allow the good student discount to continue after graduation from college)
- Maintain a 3.0 GPA or higher.
- Score in the top 20% of the SAT, ACT, or PSAT.
- Be on the honor roll or dean’s list.
What do I have to do to get the Good Student Discount added to my policy?
Have a chat with your agent. They will want to see proof of your student’s awesomeness, so be prepared to show off some of your smart cookie’s accomplishments. Usually, they’ll take the following things as proof of good-student standing:
- Report card or transcript
- Standardized test scores
- Letter from the school administration
- Dean’s list or honor roll certificate
You’ll also probably have to provide some sort of proof of enrollment to the high school or university that your child attends. If your student is homeschooled, no problem – you’ll just have to provide proof of certification from a homeschool certifying agency, like your state’s Department of Education.
Keep in mind that you may have to continue to provide proof of your teen’s success in school as time passes. Your agent may poke you from time to time to ask for the most recent grade report or transcript.
How much of a discount is it?
That depends on your carrier. It could be a significant percentage. It’s definitely worth exploring if your child makes good marks in school. The Good Student Discount is an easy way to snag some savings on your auto insurance. Insuring teen drivers is expensive – save where you can.
If you want to get some quotes for your auto insurance, we can help! We love to help people save on their car insurance. We know that insurance can be complicated, so our goal is to make the entire process as easy as possible. To get started with getting your free quotes, all you have to do is fill out our quote form or give us a call today.
Source:
https://www.investopedia.com/terms/g/good-student-discount.asp