How to Qualify for Student Car Insurance Discounts

If you are the parent of a teen driver, you understand the agony of your auto insurance bill. Parents who add a young driver to their policy should anticipate their premiums to at least double. We compared prices from more than 90 vehicle insurance providers and discovered that adding a juvenile driver resulted in an average annual increase of $2,072.

Typically, car insurance premiums do not begin to decrease until the age of 25. However, if your child achieves high grades, you may be able to immediately lower your vehicle insurance price.

Good grades lead to lower car insurance rates

Numerous vehicle insurance agencies offer a “good student discount,” which shifts relying upon the organization, however as a rule, if your understudy is inside a specific age range, enlisted full-time in secondary school or school, and has been perceived for passing marks or other educational accomplishments, you will be qualified for a discount.

Nationwide, for example, requires students to be between the ages of 16 and 24, enrolled full-time in high school or college, and have a minimum grade point average of B. You must provide proof of academic accomplishment in the form of a recent report card or a form signed by a school official.

A high letter grade isn’t the only way to get a discount. Some insurers provide numerous ways to demonstrate academic accomplishment. For example, Geico provides discounts to full-time students between the ages of 16 and 24 who meet one of the following criteria:

  • Academically, they should be in the top 20% of their class
  • Have a B+ grade point average (for schools that designate grades by letter)
  • Have a three-point average across all disciplines (for schools that designated grade by points)
  • Were you on a list for academic accomplishments, such as the Dean’s List, Honor Roll, or an equivalent list?
  • Within the last 12 months, scored in the top 20% on a national standardized test such as the PSAT, SAT-I, ACT, Iowa, PACT Test of Basic Skills, California Achievement Test, or TAP

Depending on your state and vehicle insurance carrier, a good student discount might save you a significant amount of money on your car insurance rate. For example, the average savings for a decent student discount at Progressive is 10%, but State Farm clients can save up to 25%.

Perhaps You Require Some Space

It’s hard to send a kid off to school, and it could be desolate without them close by. In any case, imagine a scenario where that additional distance may help you set aside cash. This is the point at which a “Student Away From School Discount” proves to be useful. This is some of the time alluded to as a “Remote Student Discount” or “Resident Student Discount.”

To qualify, you must typically fulfill a few conditions. For example, we examined a State Farm policy that states that drivers under the age of 25 are eligible for a student away at school discount if they satisfy the following criteria:

  • Resides at a school more than 100 kilometers away; and
  • Only drives the car while he is at home during school vacations or holidays; and
  • While the student is in school, the car remains at home

When they complete their education, do not intend to return to school, or reach the age of 25, the State Farm “student away at school” discount ends.

Driver’s Education Is Beneficial

Your kid may have a full academic load, but a driver’s education course might be beneficial. You may be eligible for a driver training discount if your child successfully completes an approved driver training program. The criteria for this discount will differ depending on the state and employer.

For example, we examined a Travelers auto insurance coverage that provided a driver training discount to people under the age of 21 who successfully completed a state-mandated driver education course.

Some insurance companies provide programs to assist young drivers. The State Farm Steer Clear discount, for example, is offered to drivers under the age of 25 who have had no at-fault accidents or moving infractions in the previous three years. Drivers must complete five training modules (containing lessons, videos, driving situations, and quizzes) as well as five hours of driving in at least ten trips to receive a program certificate and discount.

Before enrolling in a driver’s education course, check with your insurance agent to see if any driver training discounts are available.

How to Save Money on Car Insurance for Students

Aside from student discounts, you may be eligible for a variety of auto insurance reductions. It’s a good idea to contact your insurance company and request a review of potential savings. For example, you may discover that you are eligible for payment reductions such as price cuts for paying in full, paperless invoicing, and electronic funds transfer (EFT).

Discounts aren’t the only method to save money on auto insurance. Comparing vehicle insurance quotes from many insurers is the most effective approach to get the lowest prices. You may obtain free quotations online or by contacting a vehicle insurance agent.

Some insurance firms offer features such as driver instruction programs and mobile applications that assess young driving behavior to alleviate parent worry about teen driving.