Auto Insurance
How to Get Car Insurance Discounts for Students
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Various discounts are available if you’re looking for cheap car insurance for young drivers. If you are a student, you may enjoy a distant student, student affiliation or good student driver discount. You must submit documentation to qualify, like proof of your age, enrollment and grades. Your discount eligibility may vary depending on the type of discount and the insurance company.
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Key Takeaways
Young drivers tend to pay higher rates, but there are car insurance student discounts that can reduce costs.
Typically, insurance companies offer student discounts on car insurance only to full-time students no older than 25 or 26 years of age. Each company sets its own requirements.
Car insurance student discounts may not be for everyone. Shopping around, adding another driver to your policy and practicing safe driving can help you get the best rates.
Different Types of Student Discounts on Car Insurance
The availability of discounts may vary depending on the car insurance company. Most major insurance companies offer student discounts for car insurance.
When looking for a car insurance student discount, it is important to understand how each option works. Understanding these discounts can help you find the best deal for you.
Good Student Discount
The good student driver discount is available to full-time high school and college students under 25 years old. The student must maintain good grades, usually a B (3.0) or higher GPA, and be unmarried.
Distant Student Discount
A distant student discount can shave off your premiums if a college student included in their parents’ policy:
- does not stay at the family home
- attends college 100 miles away from home
- does not have regular access to the car (using it only on break or holidays)
Student Affiliation Discount
Some insurance companies offer affiliation discounts. These are often negotiated by a business, college, association or organization.
Safe Driving Discount
Many insurance providers offer a discount to policyholders who remain claim-free for several consecutive years. The required number of years varies depending on the company.
Anti-Theft Discount
Installing anti-theft devices can help lower the risk of vehicle theft. Many insurance carriers reward customers who install security devices.
The standard anti-theft devices recognized by insurers are:
- steering wheel locks
- kill switches
- electronic immobilizers
- VIN etching
- vehicle tracking systems
Driver’s Education Discount
Young drivers who complete a recognized driver’s education course may qualify for a discount. Depending on the carrier, there may be an age requirement. Approved courses may also vary per state and insurer.
Bundling
One common way of reducing the cost of insurance is to bundle policies. Significant discounts are available to policyholders who combine multiple policies with the same insurer. For instance, a home and auto insurance bundle can help you save up to $833 per year.
Who Can Use Car Insurance Discounts for Students?
Eligibility for discounts varies depending on the car insurance company.
To qualify for a student discount, most companies will take a look at your:
- age (26 or below)
- Grades (at least a B or 3.0 GPA)
- enrollment status
- affiliations
- driving history
Parents can apply for a distant student discount if their child is studying, lives at least 100 miles away from the family home and does not regular access to the insured car.
What Requirements Are Needed To Obtain Student Discounts?
To qualify for a student car insurance discount, there are certain documents you may need to submit to prove your status. Insurance companies may have different sets of qualifications for certain discounts.
You may need to submit the following documentation:
- Proof of age: Usually, the student must be younger than 25 or 26. Check age requirements with your insurance provider.
- Proof of full-time student status: Provide evidence that you are enrolled as a full-time student.
- Proof of good grades: Submit a transcript or report card proving good grades. Insurance providers require at least a B or 3.0 GPA in most cases.
- Good standardized test scores: Some companies accept standardized test scores as proof of good grades.
- Letter of academic achievements: This should be signed by the school administration.
Other Ways to Save on Car Insurance for Students
Discounts help lower car insurance costs. Depending on your circumstances and profile, discounts may not match your needs, or you may be ineligible for them. Fortunately, there are other ways students can save on car insurance.
Shop Around for the Best Auto Insurance
The best car insurance company may vary depending on personal needs and circumstances. Be sure to compare insurance quotes and offers from multiple insurers to find the best deal. To get started, you can use MoneyGeek’s resources, including our auto insurance calculator below.
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Add a Driver To the Current Insurance
Young drivers tend to pay higher auto insurance rates due to their inexperience on the road. Instead of applying for a separate policy, adding a student to an existing policy may be the cheapest car insurance option for young drivers.
Different rates apply to different ages as well. For instance, the cheapest car insurance company charges $2,462 per year for 19-year-old drivers while the cheapest cost of auto insurance for 22-year-old drivers is $1,562 per year.
Practice Good Driving
Maintaining a clean driving record can help you save money in the long run. A violation or accident on your driving record can result in higher insurance premiums.
Pay in Full
No down payment car insurance allows you to get insured with the lowest up front cost. However, paying full and upfront will save you money in the long run.
Frequently Asked Questions
Discounts vary per driver, insurer and location. MoneyGeek answers some frequently asked questions to help students understand how car insurance discounts work.
About Mark Fitzpatrick
