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

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

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We compared good student discounts from Geico, State Farm, Allstate and others, and found that high school and college students can save between 6% and 36% on their car insurance bill by getting good grades. State Farm offered the best overall rates with a student discount.

Read on for how to get the best discounts for good student car insurance, or use the box above to find the lowest rates for you.

The best insurers with student discounts

We collected car insurance quotes from six major insurers that offer student discounts to see which one had the best rates. State Farm had the best price overall, at $2,220 per year including a student discount. It also offered a 16% good student discount to our sample driver, which was the second-best discount we saw. It's one of our top picks for student car insurance.

While Allstate had the largest discount at about 20% off the standard price, its rates were the highest among the six insurers we sampled. We recommend comparing quotes from other insurers before going with Allstate based on percentage discount alone.

While the typical amount you can expect to save with a good student discount is around 13%, you could save up to 68% overall by shopping around at multiple companies.

Average good student insurance discount, by insurer

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Insurer
Annual cost without good student discount
Cost with good student discount
Good student discount percentage
State Farm$2,632$2,22015.7%
Progressive$3,128$2,8678.3%
Geico$3,798$3,5047.7%
Nationwide$5,217$4,40215.6%
Farmers$7,055$6,18912.3%
Allstate$8,718$6,98219.9%
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How do I get a good student discount?

The process of getting a good student discount on your car insurance is straightforward — the most involved part is making sure your high school or college grades meet the criteria your insurer requires.

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 also qualify by having achieved 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

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:

  • Allstate
  • AAA
  • Auto-Owners
  • Country
  • Farmers
  • Geico
  • Mercury
  • MetLife
  • Progressive
  • State Farm
  • Travelers
  • USAA

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. In our price survey of six major insurers, Allstate had the biggest student discount at around 20%, but rates for our sample student were still more than triple the price of 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 for you and signed up for insurance, you'll need to submit proof that you're enrolled full-time and getting good grades. Most 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 an official printout of your score and percentile will suffice. If you are a freshman in high school, you may have to wait for a report card, but essentially anyone else should be able to apply anytime during their schooling.

What about homeschool?

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.

For some companies, including State Farm, you do not even have to be enrolled in college. If you have completed a two- or four-year degree and are under 25 years old, your cumulative transcript from your school can show that you meet the qualifications for 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 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. We found that a 16-year-old boy will pay 38% more for his own car insurance policy than the total cost of sharing a policy with two parents.

Methodology

To find the best good student car insurance discounts, we collected car insurance rates for a 20-year-old man who owns a 2015 Honda Accord. We gathered full-coverage quotes for residents of every ZIP code in Illinois from Allstate, Farmers, Geico, Nationwide, Progressive and State Farm.

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.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

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.