It’s always nice to get rewards for being studious, but you’re too old for a gold star sticker and a pat on the head. As a college student, you have needs. Financial needs. Does a good student discount on your car insurance sound appealing? Congratulations, you’re an adult. Read on to learn what it takes for college student drivers to earn discounts, from enrollment requirements to the GPA you’ll need to maintain.
What is the average good student discount on car insurance?
On average, you can expect to save between three and 25 percent on your college student car insurance with a good student discount. The average discount is 14 percent.
How to get a good student discount on car insurance
Maybe you write the best essays in the history department. Your organic chem professor always compliments your line diagrams. Or you’re always the one who gets everyone to actually pitch in on your group project. There are as many ways to be a good student as there are students at your school. But for good student discounts, insurance companies mainly care about your grades. That’s because grades are an easily measurable shorthand for your academic performance.
Grade and GPA requirements for a good student discount
Typically, a grade average of B or higher qualifies you for a good student discount. If your college or university uses a grade point system, expect to need a 3.0 (out of four points) to get a discount. Being in the top 20 percent of students at your school, making the honor roll or appearing on the dean’s list could also net you a discount with some insurers.
To get a discount, you’ll need to contact your insurance company and ask for it. They’ll want to see proof of your grades, so you might need to send them your academic transcript or similar documentation.
Other good student discount requirements
If you attend night school or only study part-time, we have disappointing news. Insurance companies usually only offer good student discounts to full-time students.
Average car insurance rates for young drivers
Another reason to want a good student discount is that car insurance rates are higher for young people. This can seem unfair, but there’s a logical reason for it. The younger you are, the more inexperienced you are at driving. If you’re inexperienced, you’re more likely to get into an accident and file a claim. Insurance companies charge higher annual premiums to customers who are riskier to insure.
Luckily, your premiums will lower as you get older, assuming you maintain a clean driving record. For example, the average annual rate for a male 18-year-old with his own full coverage car insurance policy is $6,541. By the time he’s 22, his rate will have lowered to an average of $3,337.
Other ways to save on car insurance for student drivers
If you’re more of a C student or just need to save money for tuition, don’t fret. You’ve got options, including many other insurance discounts. Some ways to save on car insurance in college include:
- Maintaining a clean driving record. Driving safely (and always sober!) shows insurers that you’re responsible.
- Accessing billing-related insurance discounts. Some insurers have advance payment, paperless billing, and EFT transfer discounts.
- Being a member of Greek life or an honor society. Most students join a frat or sorority to make friends, but your membership could also net you a discount. Ask your insurer about it!
- Staying on your parent/guardian’s policy. Insurance is usually cheaper when you share an account with someone else, especially if they’re older than you. In some circumstances, sharing your parents’ policy will let you take advantage of a “student away at school” discount, too if you don’t take a car to school with you.
- Taking a driver training or defensive driving course. You can offset your inexperience in the eyes of insurers by taking a course to help you stay safe on the road.
- Drive an inexpensive car. Older, less luxurious cars are usually cheaper to insure. The lower a car’s actual cash value, the more affordable your premiums will be.
- Bundle with another type of insurance. If you need renter’s insurance or another type of insurance, getting them from the same insurer could come with a multi-policy discount.
- Comparison shop. Get multiple quotes from an independent insurance agency like Surround Insurance. By comparing quotes from different companies, you can find the one that best fits your budget and needs.
College insurance: the bottom line
Since car insurance is just one of the kinds of insurance you need as a college student, it’s smart to get a discount. Now you know you can get a discount by being smart – or at least by getting good grades. To get started, pull up your transcript and call your car insurance provider. Just try not to sound too smug when you tell them your GPA.