Good Student Discount
Doing well in school should be its own reward. However, there are some great insurance-related perks available for students when they excel at academics.Most car insurance companies will give students and their parents policy discounts to reward good grades. The process of qualifying for a student discount is fairly simple, though insurance companies won't apply the discount unless you provide the right documentation.
What Is a Good Student Discount?
Most auto insurance companies give good student discounts to reward students' strong academic performance.
The reason why? Statistics show students who perform strongly in school have a decreased risk of getting into auto accidents.
Insurance companies are willing to court these low-risk students as customers because they ultimately cost less to insure.
Who Qualifies for Good Student Discounts?
Every insurance company has its own policy regarding who can qualify for a student discount. However, some qualifications are consistent across the board.
Generally, the student needs to:
- Be enrolled in high school or college with a full-time status.
- Hold a valid driver's license.
- Be under the age of 25.
- Have a GPA of 3.0 or higher.
- Be on the honor roll or dean's list.
Saving Money for Being a Good Student
The exact amount of money you'll save on auto insurance will vary from provider to provider.
Keep in mind, the percentage you'll save can vary by state. Two students with similar insurance policies and academic records could pay different amounts if they live two different states.
Most policyholders can look forward to saving between 5 percent and 20 percent when a student discount is applied. This can add up to a substantial amount of money if a student stays on the same policy throughout high school and college.
Proving You're a Good Student
An auto insurance discount doesn't work on the honor system. Insurance companies will require some documentation to prove your student's good academic standing.
Typically, you'll need to submit a report card OR a letter of good standing signed by a school administrator that reflects the most recent academic quarter.
Most school administrators are familiar with the process of preparing documents for car insurance discounts. Obtaining the documents you need will likely only require making phone call or visiting the school's main office.
Can Home-schooled Students Qualify for Discounts?
Most insurance companies do extend good student discounts to students who are educated at home or in alternative settings. It's important to ask your insurance agent what you'll need to provide to qualify for the discount.
Usually, insurance providers look to standardized tests to verify that a home-schooled student meets the requirements for a discount. Some companies may offer discounts if students score within the top 20 percent on standardized tests or have earned similar academic distinctions.
The Perk That Keeps on Giving
There's a good chance your good student discount won't end the day your student graduates. Many insurance companies extend the good student discount for up to a full year after graduation (if a student is under the age of 25).
It's definitely worth inquiring about any student discounts your insurance company offers. You might find that saving up to 20 percent on your policy could be as easy as printing a copy of a recent report card.