Younger drivers frequently deal with paying higher auto insurance premiums than more experienced drivers for the reason that they tend to be more inclined to be involved in an auto accident. Therefore, statistically, younger drivers pose a greater risk to their insurance companies.
Sound like bad news? Well, here's some good: if you are a teen driver (or the parent of a teen driver), there are options available to assist in offsetting some of these costs. An excellent way to save money on insurance is to look into the good student discounts. These discounts can be utilized by teen drivers and by those in their early twenties who are still in college.
How Do Good Student Discounts Work?
A good student discount is precisely what it sounds like; it is a financial reward for students doing well in school. As it turns out, studies have shown that students who get good grades get into fewer accidents. Because of this, car insurance providers view them as a lower risk and, therefore, can offer substantial savings on insurance premiums.
Some insurance companies may even prolong the discount for a predetermined period (e.g., one year) after the student finishes school.
The amount of premium reduction available will vary between companies so get a good price by comparing several auto insurance providers.
Discounts for Driver Training
While not precisely a “good student discount," young drivers are commonly given discounts for completing and passing an approved driver's education course. Driver's education requirements and the possible discounts provided by completion vary by state and provider.
Requirements for a Good Student Discount
To be able to obtain a good student discount, most car insurance providers require that the student is younger than 25 years old, a full-time high school or college student and be carrying at least a B average.
If the student’s grades do not fall within the qualifying bracket, they can work to get them up. After the grades are at the required level, you can revisit the discount discussion with your insurance company.
It must be noted that qualifications for good student discounts might vary somewhat with carriers and in different states. Also, if a household contains more than one scholar, some insurers will not extend the full discount to both. As with every other insurance perk and promotion, the rules will vary between providers. Be sure to check with your agent for related details.
How is Your Insurance Guy Going to Know?
Auto insurance companies usually insist on proof that the student is maintaining good grades. Typically, a report card or a letter from a school administrator can be used as proof of good student status. Keeping the discount may require that you resubmit proof at renewal.
Staying at Home
Home-schooled students may qualify for a good student discount, given that they have the proper documentation. For instance, some auto insurance providers offer homeschoolers good student discounts for scoring in the top 20% on tests such as the SAT or ACT. Consult your insurance provider about precisely what proof they require.
Off at College
If your student is or will be attending college a considerable distance away from home (usually 100 miles or more), you may qualify for a “resident student discount. This discount applies if the student will only be driving the covered vehicle when they are home and not when they are away at school. If you are the parent of a teenager going away to college, consider asking about the resident student discount. You might find that it significantly lowers the premium on your auto insurance.
How to Get Good Student Discounts
If you think you have what it takes to get a good student discount, contact your insurance agent for more details. If your provider does not offer a good student discount, you might consider shopping around. There are plenty of companies willing to reward you for your hard work in the classroom.