Are you a student? Are you counting on your first car and looking for teen car insurance discounts? Then keep reading these tips! Younger drivers are faced with having to pay higher auto insurance premiums than experienced drivers because they are more likely to have accidents, and statistically pose a higher risk for their auto insurance companies.
Fortunately, if you are a young driver (or the father of a young driver), you have options to compensate for these expenses. Discounts for good students can be a great way to save money on car insurance coverage for teen drivers and up to twenty-five years.
What is a good student discount?
A discount for good students is exactly what it sounds like, rewards students economically for having good grades in their schools. Because statistics show that students who receive good grades are less likely to have car accidents, auto insurance companies see them as low-risk and therefore offer them savings on their rates. Some auto insurance companies may continue the discount for up to a limited period (e.g. one year) after the student finishes school.
Exactly how much is deducted from a student’s auto insurance premium varies in each insurance company, so it’s a good idea to compare several auto insurance providers to see which one offers more savings. As you can see there are several opportunities to get teen car insurance discounts. Let’s look at some of them
Although technically not a “good student discount,” they are offered discounts for completing and approving recommended driver education courses for teenage drivers.
How to qualify for a good student discount
In order to get the discounts available for good students, most auto insurance companies require that the student:
is under 25 years of age.
Be enrolled in full time at a high school/college or university.
Keep at least an average of B (average rating of 3.0) or in the Honor roll or Dean’s list.
Show another accepted proof of good performance (if instructed at home).
See “How to check the status of a good student” below.
If your grades (or your child’s) are not high enough to qualify, you can work to improve them. Once you get to the required level, you can ask your auto insurance company again about the discount.
Note: Be aware that the requirements may vary between companies and states. And if there is more than one student in the honor roll named in the policy, each student may not receive full discounts. The rules vary according to the auto insurance provider, so be sure to ask your agent about all the details when you investigate this type of discount.
How to check the status of a good student
Auto insurance companies often require proof that the student maintains their good grades.
The following items are usually accepted as a good student status test:
Letter signed by the school administrator.
You may need to provide proof of good student status each time you renew your policy to continue to receive the discount.
Educated students at home
Students who are trained at home may qualify for discounts with appropriate documentation. For example, some auto insurance companies will offer the discount for good students if the results of certain standardized tests such as SAT or ACT show that they are among 20% of the best students.
Talk to your insurance provider to find out exactly what vouchers they require.
Discounts for resident students
Students attending a university away from their city or state (for example, 100 miles or more) may qualify for a “resident student discount,” which can provide significant savings for the insured.
This discount applies only if the student does not plan to drive the insured vehicle while attending college, but will be able to use it during the months at home.
Vouchers required to obtain a resident student discount are determined by the insurance company, but will probably include at least the address of the university to which the student will attend.
If you are a parent of a teenager who is moving away to attend a college, think about asking about the discount for resident students. You can reduce the premium of your car insurance coverage considerably.
How to receive discounts for good students. You should look for other auto insurance and choose an insurance company that does offer this benefit. We hope you can get optimal teen car insurance discounts!