The Department of Motor Vehicles reports that the crash rate for those between the ages of 16-19 is 2.7 times greater than that of the average driver. This means teenagers and young adults often face hefty auto insurance premiums because, they are more likely to get into car accidents. Most insurance carriers can combat this financial burden by offering a good student discount.
The good student discount is an auto insurance discount provided by carriers that benefits students financially for their academic achievement. In other words, this discount offers reduced premium rates for current students that maintain a specific GPA or other measurable level of success in school.
The Journal of Accident Analysis and Prevention found in a recent study that students with a C or D average in school are 49% more likely to get into a car accident than those with an A or B average. As a result, students with an A or B average are labeled as low-risk drivers by car insurance companies and rewarded with lower rates.
While specific qualifications vary between carriers and states, most auto insurance companies typically require students to meet the following standards:
Be under the age of 25
Be currently enrolled full time in high school, college or university
Maintain at least a 3.0 GPA
Score in the top 20 percent on the PSAT, SAT or ACT
Receive recognition on the dean’s list or honor roll
Receiving the Good Student Discount
You need to provide both proof of enrollment and proof of academic achievement to receive the good student discount. A report card or transcript, standardized test score results, a letter from a school administrator, or a dean’s list or honor roll certificate can be the proof an insurer needs. If you are a home-schooled student, you need a certification signed by a home-schooled certifying body, such as the State Department of Education.