You can get a good student discount from most insurers by providing proof of good grades or a high standardized test score for a student who is under 25 years old and attends school full time. All of the 10 largest car insurance companies offer good student discounts, and most will accept a minimum of a B average or a 3.0 GPA. A designation like Honor Roll or Dean's List usually counts, too. For home-schooled students, some insurers will also accept proof that students scored in the top fifth of their class on a standardized test like the SAT or ACT.
Every company’s requirements are slightly different, so if you’re shopping for a new insurance policy, it’s worth making sure you’ll qualify. The table below lays out the details for each of the 10 largest insurers.
Keep in mind that these discounts vary by location and may not be available in some states. Students might also need to be listed as a secondary driver rather than the main policy holder to be eligible for a discount. In addition, it’s worth noting that some insurance companies give college students living on campus a higher discount than those living off campus.
When in doubt, it’s always worth asking your car insurance company if you or a family member qualifies for a good student discount.
The best way to lower your teenager’s car insurance rate is to add them to your existing insurance policy if they currently have their own and then look for discounts to further lower the cost. Other notable ways to lower the cost of teenage car insurance include reducing your teen’s coverage and getting multiple quotes.… read full answer
Teen drivers typically pay more for car insurance than mature drivers because insurers consider them high-risk. Rates don’t usually drop until age 25, unless you intervene with these strategies.
Four Ways To Lower Teenage Car Insurance Costs
Add your teen to an existing policy
Sharing an insurance policy with a teen driver is usually the most cost-effective option for a family. For example, car insurance for a 16-year-old with their own policy costs an average of $3,343 per year. By comparison, adding a teen to an existing policy raises the premium by about $1,400, on average.
Look for applicable discounts
Most major insurers offer several discounts designed to help lower the cost of insuring a teen driver. The two most common types of discounts that apply specifically to teens are good student discounts and resident student discounts. Good student discounts apply to high school or college students who maintain a certain GPA, while a resident student discount reduces premiums for college students who go to school more than 100 miles away from their vehicle.
Teens can still qualify for some general discounts, too. For example, they may be able to receive a discount if they take an approved defensive driving course or stay accident-free for a certain period of time.
Considering how expensive car insurance is for young drivers, your teen could save on their premium by limiting the amount of coverage they include on their policy. However, they still need to be in compliance with state law and avoid driving uninsured.
Get multiple quotes
The best way to lower teen car insurance is to shop around for quotes from at least three different providers, especially if your teenager is getting their own policy. Every insurer uses their own methods to calculate premiums, so the rate that you get from one company might not be the same as another. As a result, simply shopping around could save a teen driver hundreds of dollars per year on car insurance.
College students can get car insurance discounts for having good grades or for going to college far away from the car they drive. College students can also qualify for general car insurance discounts, such as driver's education and good driver discounts. Since most college students are young drivers, car insurance companies consider them … read full answerhigh-risk and usually charge them higher premiums, making discounts all the more important.
To qualify for a good student discount, drivers usually need to be under 25 years old and unmarried, with a B average or better. Additionally, distant student discounts are designed for students who do not have a car with them at college and who attend school more than 100 miles away from home. You can see which major car insurance companies have these student discounts below.
Car Insurance Discounts for College Students by Company
Most college students can save money on car insurance by staying on a family policy. However, if your permanent residence is different from your parents’ and you drive full-time, you will likely need your own policy. It also might be cheaper to buy your own policy if you go to school in an area with lower car insurance rates or if one of your family members has a poor driving record that increases premium costs.
You can get a Nationwide good student discount if you have at least a B average or a 3.0 GPA. Student drivers can save as long as they are 16-24 years old and a full time high school or college student. Homeschooled students can also qualify if they score in the top 20% of a national test such as the PSAT, SAT, or ACT.… read full answer
Young drivers are usually quite expensive to insure since they lack driving experience. However, Nationwide offers a good student discount because having good grades shows the insurer that you are responsible off the road, meaning you’re more likely to be responsible in the driver’s seat as well.
Nationwide good student discounts vary by state, but it’s always worth the effort of checking if they are available in your location.
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