Good student discount for car insurance: How to qualify and save

Car insurance rates are rising in 2025, and young drivers feel it the most.

Premiums have been climbing across the board due to inflation, higher repair costs, and more frequent claims. Younger drivers, particularly teens and those under 25, are hit hardest. Because insurers see them as higher risk due to limited experience behind the wheel, rates for this age group are among the highest.

That’s why finding ways to save is more important than ever. If you’re a student — or have one on your car insurance policy — you may qualify for a good student discount, which rewards strong academic performance with lower premiums.

Good student discounts can save you anywhere from 5% to 10% off your car insurance premiums, according to Bob Passmore, department vice president of auto and claims at the American Property Casualty Insurance Association (APCIA). 

Even a small discount can make a big difference when you’re paying higher rates just for being young. If you or your student meet the eligibility requirements, it’s worth contacting your insurer — or shopping around — to see how much you can save.

What is a good student discount?

If you’re a student under 25, good grades can help offset the higher cost of car insurance. Insurers often consider young drivers at higher risk due to limited experience, which usually leads to steeper premiums. But if you excel academically, you may qualify for a good student discount.

Most insurers offer this discount if you maintain at least a B average, have a GPA of 3.0 or higher, or make the honor roll or dean’s list. It’s their way of rewarding responsibility on the road and in the classroom. The exact savings will vary by company, but it’s a smart way for students (and their parents) to cut costs without changing coverage.

Why do insurers offer a good student discount?

Teen and young adult drivers are statistically more likely to be involved in car accidents than older, more experienced motorists. In fact, a study by the American Academy of Pediatrics found that drivers aged 15 to 19 have the highest crash rates of any age group. That elevated risk is a major reason car insurance premiums are typically high for young drivers. However, insurers also recognize that not all young drivers present the same level of risk. Academic performance is one way to measure responsibility. 

“Insurers have long seen a correlation between good grades and fewer crashes, and the discount also serves as an incentive for good driving,” says Passmore. 

In other words, if you demonstrate discipline and focus in the classroom, insurers are betting you’re more likely to carry those habits onto the road.

Offering a good student discount rewards responsible behavior and helps insurers attract and retain younger customers by making coverage more affordable.

Who qualifies for a good student discount?

According to Passmore, each car insurance company will have its own requirements to qualify for a good student discount, but most follow similar guidelines. To qualify, students typically must meet the following conditions:

• Be enrolled full-time in high school, college, or university
• Be under the age of 25
• Maintain at least a B average or a GPA of 3.0 or higher
• Be recognized on the honor roll or dean’s list

If you meet these qualifications, it’s worth asking your insurer about potential savings. Even a small discount can add up, especially for younger drivers facing higher premiums.

How to qualify for a good student discount

The proof you’ll need to qualify for a good student discount depends on your insurance company, but most will ask for something that shows your academic performance. That could include a recent report card, a copy of the honor roll or dean’s list, or even standardized test scores like the SAT or ACT.

Keep in mind that this isn’t a one-time thing — you may need to provide updated documentation every semester or whenever your policy renews to keep the discount active. If you’re not sure what’s required, your insurance agent can walk you through it.

How much can you save with a good student discount?

Savings from a good student discount vary by insurer, but they typically range from 5% to 15%, with the average discount being 12.5%. That can add up to significant savings.

Adding a teen or young adult to a parent’s policy can dramatically increase the cost of coverage, so every bit of savings helps. By staying focused in school and maintaining strong grades, students can lower their rates and ease the financial pressure on their families. 

If you’re unsure how much you could save, it’s worth checking with your insurer — some discounts are more generous than others, depending on the company and where you live.

How to apply for a good student discount

Here are the steps to apply for a good student car insurance discount:

• Reach out to your insurance company or agent. Start by confirming that your insurer offers a good student discount. Your agent can walk you through their specific requirements.
• Gather the proper documents. Be prepared to submit proof of your academic performance. This might include a recent report card, transcript, honor roll or dean’s list certificate, or standardized test scores. Double-check with your insurer to make sure you’re sending the right information.
• Ask about verification policies. Some insurers require updated documentation every policy renewal, while others ask for proof of grades each semester. Make sure you know what to expect so you don’t miss out on the discount.

What if you don’t qualify for a good student discount?

If you’re a young driver but don’t qualify for a good student discount, there are still several ways you can save on car insurance.

• Take a defensive driving course. Many insurers reward you with a discount if you complete a defensive driving or driver’s education course. 
• Consider usage-based insurance (UBI) programs. UBI programs track your driving habits. If you drive safely or infrequently, you may score a discount 
• Practice safe driving habits. If you go accident or claims-free for a certain number of years, you may qualify for a safe driving discount. 
• Bundle your policies. Bundling your auto insurance policy with your home or renters insurance is one of the biggest ways to save.
  

Which companies offer good student discounts?

Many major car insurance companies offer a good student discount. That said, the amount you can save and the requirements around the discount will vary. Below are a few insurance companies that offer good student discounts.

• GEICO
• American Family
• Travelers
• Nationwide
• Progressive

If your insurer doesn’t offer this discount or if the savings seem minimal, consider shopping around. Rates and discount programs can vary widely between companies, so switching insurers could lead to better overall savings. 

“Because companies vary on their practices, it’s yet another reason to shop around and ask these questions,” says Passmore.

When does a good student discount expire?

How long a good student discount lasts will vary by insurer, but typically, you can keep this discount as long as you are under a certain age (like 25) and a full-time student. If your grades slip, you’ll likely lose the discount when your insurer asks for updated documents, typically at renewal or during a re-verification period.

Common mistakes that can cost you a good student discount

While a good student discount can lead to meaningful savings, it’s easy to lose if you do not meet the requirements. Here are some common mistakes that could cause you to miss out — or lose the discount altogether:

• Forgetting to send grade verification. Most insurers require proof of academic performance to activate and maintain the discount. If you miss the deadline or fail to submit updated records, the discount may be removed from your policy.
• Not confirming which documents your insurer accepts. Requirements vary by company. Some accept a report card or transcript, while others may ask for honor roll recognition or standardized test scores. Always check with your insurer so you don’t send the wrong paperwork.
• Not updating your grades at renewal. Even if you qualified in the past, insurers may need new documentation each time your policy renews, often every six or 12 months. Set a reminder so you don’t miss the window to reverify.
• Overlooking other available discounts. Good grades aren’t the only way to save. Combining a student discount with safe driving, bundling, or usage-based insurance programs can maximize your savings. It’s worth asking your insurer what else you might qualify for.

By staying organized and informed, you can hold on to your discount and keep your premiums as low as possible.

Because car insurance rates for young drivers tend to be high, a good student discount is one of the simplest ways to bring those costs down. Maintaining strong grades signals to insurers that you’re responsible, both in and out of the classroom. To make the most of your savings, be sure to compare quotes from multiple insurers, as discount availability and amounts can vary widely.