How Much Does the Good Student Discount Save?
Average savings by insurer:
- State Farm: Up to 25% ($400–$600/year for teens)
- Geico: Up to 15% ($250–$400/year)
- Progressive: Up to 10% ($200–$350/year)
- Allstate: Up to 20% ($300–$500/year)
- Nationwide: Up to 15% ($250–$400/year)
- USAA: Up to 10% (military families)
- Farmers: Up to 25% ($400–$600/year)
- Liberty Mutual: Up to 15% ($250–$400/year)
Savings range: 8–25% or $200–$600/year
The exact amount depends on:
1. Base premium: Higher premiums = higher dollar savings. If a 17-year-old pays $3,000/year, a 20% discount saves $600. If they pay $1,500/year, the same 20% saves $300.
2. Insurer: Some companies weight academic performance more heavily than others.
3. Age: Discounts typically apply through age 25, but savings decrease as rates naturally drop with age.
4. GPA level: Some insurers offer tiered discounts (B average = 10%, A average = 15%).
Why it matters: For a 16-year-old paying $3,500/year, a 20% good student discount saves $700/year—nearly $3,500 over five years. This can fund a semester of books or offset the cost of adding the teen to the policy.
Who Qualifies for a Good Student Discount?
Standard eligibility requirements:
1. Age: Student must be under 25 (typically 16–25 range)
2. Enrollment status: Full-time high school or college student
3. Academic performance (one of the following):
- GPA of 3.0 or higher (B average) on a 4.0 scale
- Dean's List or Honor Roll designation
- Top 20% of class ranking
- SAT/ACT scores above threshold (some insurers accept standardized test scores)
4. Proof of grades: Must provide documentation (see below)
Some insurers also accept:
- Homeschool students with equivalent academic records
- Trade school or vocational program students
- Part-time students (limited insurers)
Exclusions:
- Students over 25 typically don't qualify (though some insurers extend to age 26)
- Part-time students often don't qualify (varies by insurer)
- Graduate students may not qualify with some insurers
Check with your specific insurer—requirements vary. Some are more flexible than others.
How to Apply for a Good Student Discount
Step-by-step process:
Step 1: Verify your insurer offers the discount
- Call your agent or check your policy documents
- Most major insurers offer it—but it's not automatic
Step 2: Gather proof of academic performance
Acceptable documentation:
- Official report card or transcript
- Letter from school registrar on school letterhead
- Dean's List certificate or Honor Roll notification
- Screenshot of online grade portal (some insurers accept this)
Important: Documents must include:
- Student's full name
- School name and term/semester
- GPA or grades
- Official school marking (seal, signature, or letterhead)
Step 3: Submit documentation to your insurer
Methods:
- Online: Upload through insurer's mobile app or customer portal
- Email: Send scanned copy to your agent
- Mail: Send physical copy (slower)
- Fax: Some insurers still accept faxed transcripts
Step 4: Wait for confirmation and rate adjustment
- Most insurers process within 1–2 weeks
- Discount typically applies at the next policy renewal
- Some apply it mid-term retroactively
Step 5: Resubmit annually
- Good student discounts are not permanent
- You must submit proof each year (or every semester, depending on insurer)
- Set a calendar reminder at the end of each semester
Pro tip: Submit your documentation as soon as grades are posted. Don't wait until renewal—some insurers apply the discount immediately.
How Long Does the Good Student Discount Last?
Duration by insurer:
Annual renewal: Most insurers require proof once per year at policy renewal.
Semester renewal: Some insurers require proof every 6 months (each semester).
Age limit: Discount typically ends when the student:
- Turns 25 (most common cutoff)
- Turns 26 (some insurers)
- Graduates college (some insurers)
- Is no longer enrolled full-time
What happens if grades drop below B average?
- Discount is removed at the next renewal
- Premium returns to standard young driver rate
- Insurer will notify you before removing the discount
What happens if you take a semester off?
- Discount is typically removed while not enrolled
- Can be reinstated when you re-enroll and submit new proof
Summer break: Most insurers maintain the discount through summer if you were enrolled the previous spring and plan to return in fall. Check your specific policy.
Continuous eligibility: As long as you maintain good grades and full-time enrollment, you can keep the discount until age 25 (or insurer's age limit).
Which Insurers Offer the Best Good Student Discounts?
Top insurers ranked by discount percentage:
1. State Farm – Up to 25%
- Requirement: B average or higher
- Age limit: Under 25
- Savings: $400–$600/year on average
- Note: One of the most generous discounts in the industry
2. Farmers Insurance – Up to 25%
- Requirement: B average, Dean's List, or top 20% of class
- Age limit: Under 25
- Savings: $400–$600/year
3. Allstate – Up to 20%
- Requirement: B average or Honor Roll
- Age limit: Full-time students under 25
- Savings: $300–$500/year
4. Geico – Up to 15%
- Requirement: B average (3.0 GPA)
- Age limit: Under 25
- Savings: $250–$400/year
- Note: Easy online submission process
5. Nationwide – Up to 15%
- Requirement: B average
- Age limit: Under 25
- Savings: $250–$400/year
6. Liberty Mutual – Up to 15%
- Requirement: B average or top 20% of class
- Age limit: Through age 24
- Savings: $250–$400/year
7. Progressive – Up to 10%
- Requirement: B average
- Age limit: High school and college students under 25
- Savings: $200–$350/year
8. USAA – Up to 10%
- Requirement: Top 20% of class or Dean's List
- Age limit: Under 25
- Savings: $200–$300/year
- Eligibility: Military families only
Regional and smaller insurers may offer 5–15% discounts. Always ask your insurer about student discounts—some are not advertised prominently.
Combining Good Student Discount with Other Discounts
Stack these discounts for maximum savings:
1. Good student (8–25%) + Defensive driving course (5–10%) = 13–35% total
2. Good student + Telematics/safe driving app (10–30%) = 18–55% total
3. Good student + Multi-car discount (10–25%) = 18–50% total
4. Good student + Distant student discount (10–30%, if away at school without car) = 18–55% total
5. Good student + Vehicle safety features (5–20%) = 13–45% total
Real-world example:
Base rate for 17-year-old: $3,500/year
Applied discounts:
- Good student: -20% ($700 savings)
- Defensive driving: -10% ($350 savings)
- Telematics (safe driving app): -15% ($525 savings)
- Multi-car discount: -15% ($525 savings)
New premium: $1,400/year
Total savings: $2,100/year (60% reduction)
Not all discounts stack at full value: Some insurers cap total discount at 40–50%. But even with caps, combining good student with other discounts can cut rates in half.
Ask your insurer which discounts can be combined and which have maximum caps.
What If Your Student Doesn't Have a B Average?
Alternative ways to reduce young driver premiums:
1. Defensive driving course (5–10% discount)
- Available to all young drivers, no GPA requirement
- One-time online course, costs $25–$100
- Savings pay for the course in 1–2 months
2. Telematics/safe driving app (10–30% discount)
- Monitors actual driving behavior (braking, speed, time of day)
- Rewards safe driving with discounts
- Ideal for students who drive carefully but don't have strong grades
3. Low mileage discount (5–15% discount)
- For students who drive fewer than 7,500 miles/year
- Especially applicable if student doesn't drive to school daily
4. Distant student discount (10–30% discount)
- If student goes to college >100 miles away without a car
- Available regardless of GPA
5. Vehicle assignment to older car (indirect savings)
- Assign student to the least valuable vehicle on the policy
- Reduces comprehensive/collision premium
6. Increase deductibles (10–30% savings)
- Raise deductible from $500 to $1,000 or $1,500
- Reduces premium but increases out-of-pocket cost if student has an accident
7. Drop comprehensive/collision on older vehicles
- If student drives a car worth <$3,000, consider liability-only coverage
- Saves 40–60% on premium
Even without good grades, students can still save $500–$1,500/year by applying these alternative discounts.
Frequently Asked Questions
Good student discounts typically save 8–25% on car insurance premiums, or $200–$600/year for young drivers. The exact amount depends on the insurer and the student's base premium.
Most insurers require a B average (3.0 GPA on a 4.0 scale) or higher. Some also accept Dean's List, Honor Roll, or top 20% of class ranking.
Yes. Most insurers require you to submit proof of good grades annually (or every semester). The discount is not permanent and must be renewed with updated documentation.
The good student discount typically ends at age 25. Some insurers extend it to age 26. It also ends if the student graduates college or stops being enrolled full-time.
Yes. Full-time college students under age 25 with a B average or higher qualify for good student discounts. Requirements are the same as for high school students.