Do School Grades Impact Car Insurance?


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When your teen son or daughter learns how to drive, your stress level goes up. And so does the cost of your car insurance premium. Insurance companies generally perceive teenagers and young adults to be more at risk of getting involved in accidents during the first few years of their driving. Fortunately, there are several ways that you can reduce the cost of your auto policy even if you have a young driver. Allstate insurance reviews will show you that some big players in the industry offer a wide range of discounts to help you save on cost.

An excellent example would be a good student discount. 

Why Are Premiums Higher for Young Drivers?

When it comes to computing for insurance premiums, the amount of risk every driver poses to the insurer is what matters. It’s no secret that teen or young drivers pay higher insurance premiums.

They are generally inexperienced. Many carriers also see them as less responsible. Young students likely don’t have their own home yet, nor do they already have a family to care for.

Since their actions have far fewer consequences than many adults, they tend to get more involved in drunk-driving incidents and other road accidents. Insurers view teens and young adult drivers as potential problems that they will have to deal with many times in the future. In turn, insurance companies are less eager to insure them.

Charging teens or young drivers higher premiums help make it worth their while, though.

How to Avail Good Student Discount

Many major insurance carriers offer good student discounts in their auto policy.

This helps reduce premiums to as much as 10 to 15 percent off. Insurers provide this to both high schoolers and college students below the age of 25 who can demonstrate that they are doing well in school. Students have to show proof of their academic achievements to be eligible for a discount. Auto insurance companies may consider:

        Dean’s List or Honor Roll

        Good Standardized Scores 

        Grade Average of B 

        Grade Point Average (GPA) of 3.0

        Ranking in the Top 20 percent 

        Associate Degree

        Bachelor’s Degree

        Letter Signed by the School Administrator Certifying Your Academic Achievements

Every carrier can decide whether to offer good student discounts in their auto policy.

If so, they are free to set the guidelines for eligibility. One insurance company may offer a 25 percent discount on auto policy premiums to full-time high school and college students who earn good grades until they turn 25 years old.

Another carrier may offer a 15 percent discount to unmarried drivers with at least a GPA of 3.0 during high school or college. 

Clean Driving Record

A 17-year old driver will always pay more than a 30-year old with the same zip code and type of car.

Young drivers have a few ways to lower their insurance premiums. Aside from earning good grades, another common way to reduce premium rates is by keeping a clean driving record.

You can do this by taking a driver safety course and avoiding tickets and violations. A broken taillight, speeding, and other minor violations have to be addressed quickly. If you get too many of these types of tickets, they will raise a red flag to your insurer. It will be difficult for you to get affordable car insurance premiums if you have a blemished driving record. You wouldn’t want them to think you’re not a responsible driver.

Worse, they might even drop you from the policy if you’re convicted for severe moving violations, such as driving under the influence.

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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