Car Insurance Discount For Students With Good Grades

Many students are surprised that they can save money on insurance by maintaining good grades. Yes, it’s true: some auto insurance companies offer discounts to students with a high GPA.

How high do your grades have to be? How much money can you save? Which insurance companies offer the best discounts for good grades? Today, we’re answering all your questions about auto insurance good grade discounts.

insurance discount for good grades

What is a Good Student Discount?

Typically, car insurance companies don’t have something called a “good grade discount”. Instead, it’s usually titled something like “good student discount”.

Not all car insurance companies offer this discount. And when they do offer the discount, it’s not typically that big. But why would you turn down free money?

Good student discounts may be available to high school students. However, they’re more commonly offered to college students.

Why Do Insurance Companies Offer Good Student Discounts?

There are two main reasons for this discount.

The first reason (and most important reason) is that good students tend to be safer drivers. They engage in fewer “risky” activities, from a car insurance company’s perspective. Some insurance companies believe good students are less likely to drink or do drugs while driving their vehicle, for example. That means the insurance company can offer lower rates to that student. Put simply, they’re less likely to be involved in a collision, which means the insurance company is less likely going to have to pay out.

The second reason insurance companies offer good student discounts is to simply reward good students and good behavior. It’s good PR for the insurance company. The insurance company gives students a financial reward for doing well in school. It’s a small cost to the insurance company. The insurance company may benefit in the future because the student is more likely to stick with the insurer after they finish college.

How Do Good Student Discounts Work?

Good student discounts vary between insurance companies. Typically, discounts are given to students when they maintain a certain GPA (a 3.0 GPA seems to be a particularly popular standard).

You will need to provide transcripts (or other official documentation) to your insurance company letting them know that you maintained that GPA throughout your college career.

Typically, this insurance discount only applies while you’re attending school full-time. In some cases, however, insurance companies may extend the discount for up to 1 year after you’ve completed school.

Requirements for a Good Student Discount

These are some of the typical requirements for good student discounts:

  • Be younger than 25 years of age
  • Be enrolled full-time at an accredited high school, college, or university
  • Maintain at least a B average (typically a 3.0 GPA); some insurance companies require you to be on the Honor Roll or Dean’s List
  • Show other accepted proof of good performance (some home school students may be eligible for good student discounts, for example)
  • Be able to verify the above information with a report card, official transcript, or signed letter from your school administrator

Specific requirements vary widely between insurance companies (and again, not all companies offer good student discounts). Some insurance companies require you to finish in the top 20% on a standardized test (SAT or ACT), for example, to be eligible, and will ignore your GPA and grades.


Ultimately, young drivers pay some of the highest car insurance rates in the country. For younger drivers, even a small discount could be the difference between affording a car in high school – or going through your college career without ever owning a vehicle. Talk to your insurance company about good grade discounts. Or, compare auto insurance rates in your area to find the cheapest policy for you.

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