Good Student Insurance Discount: Who Offers It, and How to Save

Good Student Insurance Discount: Who Offers It, and How to Save

We compared good student discounts from Geico, State Farm, Allstate and others, and found that high school and college students can save between 4% and 20% on their car insurance by getting good grades.

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The largest good student discount can be found at Allstate. However, State Farm offers the cheapest car insurance with a student discount.

Most insurers require students to maintain a B average or better, or be in the top 20% of their class to earn a good student discount.

Best insurers with student discounts

State Farm has the cheapest car insurance for good students, overall. A minimum-coverage policy with a good student discount costs $71 per month, or $848 per year. That amounts to a 17% savings for good students.

While Allstate offers the largest good student discount at about 20% off the standard price, its rates are more expensive than average, even after the discount. We recommend comparing quotes from other insurers rather than going with Allstate based on the percentage discount alone.

Average good student insurance discount, by insurer

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The typical amount you can expect to save with a good student discount is around $22 per month for minimum-coverage insurance, however good students can save up to $174 per month by shopping around at multiple companies.

Average monthly car insurance quotes for students

Company
Good student discount
Cost with discount
Cost without discount
Allstate20%$134$167
American Family19%$110$137
State Farm17%$71$85
Nationwide15%$148$175
Farmers15%$245$288
Geico7%$110$118
USAA4%$105$110

Rates are based on a minimum-coverage policy in Illinois.

How do I get a good student discount?

The process of getting a good student discount on your car insurance is straightforward — the most important part is making sure your grades meet your car insurance company's criteria.

1. Get good grades

In order to qualify for a good student discount, you have to have a B average or better, or be in the top 20% of your class. This is usually based on your cumulative transcript, so you don't need to worry if you had one subpar semester.

Alternatively, you can qualify by scoring in the top 20% nationally on one of several standardized tests.

Full list of requirements for good student discount:

  • Age: 16-25
  • Single
  • Full-time enrolled high school, college or homeschooling
  • One of the following:
    • B or 3.0 GPA or top 20% in your class
    • Rank top 20% on ACT, SAT, PSAT, TAP, PACT, California Achievement Test or Iowa Test of Basic Skills
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2. Shop around for quotes

Many car insurance companies offer discounts for good grades, and the process of finding out what you'll pay with the discount is just like getting any other auto insurance quote. Just keep an eye out for a "good student" checkbox while you're completing the form.

Insurers with good student discounts include:

Good student discounts may not be available in all locations or to all students.

However, keep in mind that a good student discount is only one piece of what determines how much you'll pay for car insurance. Although Allstate has the biggest student discount at around 20%, its rate is still nearly twice as expensive as the cheapest option overall, State Farm.

Most affordable car insurance with student discount

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3. Submit proof of your good grades

After you've found the best price and signed up for insurance, you'll need to submit proof that you're enrolled in school full time and getting good grades. Often, this will be a copy of your most recent high school or college transcript, though the exact requirement will vary by insurer.

If you are using a standardized test to qualify instead, then you can submit an official printout of your score and percentile. Freshmen in high school may have to wait for a report card, but essentially anyone else should be able to apply anytime during their schooling.

What about homeschooling?

Things are a little trickier for homeschooled students. Allstate lists in its "Good Student Discount" section that kids who are homeschooled qualify for the discount. There is no mention of homeschooling from Geico or State Farm, however.

Homeschooled students will have to ask their company directly and see if it has any specific requirements. A standardized test may be the only way for a homeschooled student to get the discount.

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For some companies, including State Farm, you do not even have to be enrolled in college to earn a good student discount. If you have completed a two- or four-year degree and are under 25 years old, a cumulative transcript from your school can earn you State Farm's good student discount.


Other car insurance discounts for students

A good student discount is far from the only way for high school and college students to save on car insurance.

  • Many insurers offer discounts for safe driving courses especially for teens and young adults — they generally review and expand upon what's covered in driver's education.
  • If you're going out of state for school and won't be using your parents' car while you're away, you can usually qualify for an away at school discount. These discounts recognize that if you're in another state for most of the year, you're likely to do little or no driving, and thus a much lower risk.
  • Finally, while it isn't marketed like a discount, one of the most significant ways for a teen or college student to save money on car insurance is to share their car insurance policy with an older relative, like a parent. An 18-year-old boy will save around 62% on car insurance by sharing a policy with two parents.

Frequently asked questions

Do grades affect car insurance rates?

Yes, student drivers can save between 4% and 20% on car insurance by earning a 3.0 GPA or better, or earning a spot in the top 20% of their class.

Does Progressive have a student discount?

Yes, Progressive offers a discount for students under the age of 23 who earn a B average or better. The company states that its average good student discount is 10%.

How much is the good student discount at State Farm?

Good students can save an average of 17% on minimum-coverage insurance with State Farm. The company also offers the cheapest car insurance rate for students that we found — $71 per month, including its good student discount.

How much is USAA's good student discount?

USAA offers the smallest good student discount we found, at 4%. However, it's still the second-cheapest company for minimum-coverage insurance — good students can expect to pay around $105 per month.

What GPA is needed for a good student discount?

Most companies require students to maintain a 3.0 GPA or better to earn a good student discount.

Methodology

To find the best good student car insurance discounts, we collected car insurance rates for men aged 18, 20 and 22 years old who live in Illinois and own a 2015 Honda Accord.

Quotes are based on the minimum coverage required in Illinois:

Coverage
Limit
Bodily injury liability$25,000 per person/$50,000 per accident
Property damage liability$20,000 per accident
Uninsured motorist bodily injury$25,000 per person/$50,000 per accident

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.