Young drivers have some of the highest insurance premiums of any demographic. Simply being a teenager puts you at an extreme disadvantage, and if you have a speeding ticket or other infraction on your record, the costs will spiral and become almost insurmountable.
However, good grade discounts can help to bring them down and make those premiums more manageable.
What is a Good Grade Discount?
These discounts are offered to young drivers who study full-time and maintain at least a B average. The actual savings will depend on the insurance company, state, and other factors, but they range from around 5 to 25%.
In most cases, you need to achieve and maintain those high grades, and some insurers will offer savings even after you graduate (up to the age of 25).
Insurance Companies with Good Grade Discounts
What follows is a list of car insurance companies that have good grade discounts. Remember to compare as many of these as you can, and don’t simply opt for the one that has the biggest discount. After all, that discount is only worthwhile if the base rate is low.
State Farm Good Grade Discount = Up To 25%
State Farm offers one of the most generous good grade discounts, going as high as 25%. The savings continue even after you have graduated, ending only when you turn 25. Good driving discounts, defensive driving discounts, and student away discounts are also available.
Geico Good Grade Discount = Up To 15%
Policyholders between the ages of 16 and 24 can qualify for a discount of up to 15%. Geico’s good grade discount is available on specific coverage plans and in most states. It is available to full-time students who maintain at least a B average, and it’s offered alongside a host of other discounts.
Nationwide Good Grade Discount = Varies
As with Geico, Nationwide’s good student discount is available for 16 to 24-year-olds with a B average. It’s also offered to homeschooled children, providing they have completed a standardized test such as the ACT, SAT, or PSAT, and scored in the top 20%.
Farmers Good Grade Discount = Up To 10%
Full-time students under 25 may qualify for a good grade discount with Farmers. Other discounts are available and can be discussed with your local insurance agent.
Allstate Good Grade Discount = Up To 9%
A saving of 9% is offered alongside a generous student away discount of up to 35%. Allstate has other benefits to consider as well.
Liberty Mutual Good Grade Discount = Varies
Along with a good grade discount, which is available to under-25s with a 3.0 GPA, Liberty Mutual also has a Driver Training Program. Under-21s are invited to complete this program and reduce their premiums further.
Esurance Good Grade Discount = Up To 10%
Students who hit a 3.0 GPA will qualify for a good grade discount with Esurance. It can be used to reduce the cost of collision insurance and is available alongside many other discounts. It has one of the easiest application processes and is one of the fastest-growing insurers in the US.
Other Discounts for Student Drivers
A student away discount can be just as beneficial, but it’s not as all-encompassing. This discount is offered to students who study away from home, often on the basis that their school is more than 100 miles away.
It is assumed they will only use the car when they are at home, and because they reside so far away and study full time, their trips home will be infrequent and brief. It’s essentially a limited use discount and is offered on the basis that less driving equates to less risk.
Telematics programs or usage-based insurance can help, as well. These entail installing a device in the driver’s car that tracks their braking habits, speed, mileage, and the time they drive. Most programs synchronize with the policyholder’s phone and monitor how often they check their phone while driving.
Speak with your insurance agent about your options and all available discounts. Compare quotes from local and national providers and discuss whether it would be cheaper to add yourself to a parent’s policy.
This is not something that needs to be rushed and if you take your time and understand your options, you could make substantial savings.