Being a student can be expensive enough, but you’re not condemned to a life of ramen noodles and trying to lift free internet from your neighbors. There are many ways you can save money as a student, and a good student discount car insurance is one of the best.
Car insurance can be expensive, especially as a student. When you have books and tuition to pay for, car insurance can be an added burden. That’s why most major insurance providers offer a good student discount, which gives students a discount on their car insurance for having good grades.
Insurance companies assume that good students are also more likely to be responsible drivers, and so pose less risk. Rather than going without insurance or paying exorbitant rates, you could qualify for affordable coverage just by being a good student.
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Teenagers and young adults are charged some of the highest car insurance premiums because they’re seen as some of the riskiest drivers.
Not only have these younger drivers been driving for the least amount of years compared to other age groups, but they’re also statistically more likely to speed and get into car accidents. This means insurance providers are more likely to pay claims based on young drivers, so they charge higher premiums.
But not all young adults are risky drivers, and they shouldn’t have to pay high car insurance premiums because of others. That’s why the good student discount factors in your school performance in order to counteract the high rates you would otherwise pay.
By being a good student and maintaining your grades, you can save significantly on car insurance for as long as you’re in school and keep up the great work.
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Insurance providers know that students and young adults are generally riskier drivers. This is why car insurance rates are so much higher for them versus many other age groups.
Luckily, you can qualify for a good student discount on car insurance just by proving that you maintain strong academic performance.
The savings are definitely worthwhile and they can help see you through to age 25 or 26 when rates start to drop again. While the exact amount will vary, you can be sure it’ll make a sizeable dent in otherwise high car insurance premiums.
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You typically need at least a 3.0 GPA or a “B” average to qualify for the good student discount. Your specific insurance provider will detail exactly what qualifies and how to demonstrate proof of your good grades.
Yes, you should try to qualify for the good student discount because it can save you on average 7% on your car insurance and sometimes even more. If you’re not quite at the grades threshold to qualify, it’s worth trying to get there because of how much the car insurance savings can add up.
Each insurance provider will have a list of documents they accept to qualify for the good student discount on car insurance, but you can usually use your transcript, your report card, results of standardized tests, or a signed letter from your school.
Jessica Fox Jessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.
