A good student discount is a car insurance discount offered to teen and young adult drivers who maintain strong academic performance, typically requiring a "B" average or 3.0 GPA. Insurance companies provide these discounts based on data showing that students with good grades tend to be more responsible drivers with fewer accidents and claims.
Good Student Discount Car Insurance: Complete Guide to Maximizing Savings
Updated: June 26, 2025
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Key Takeaways
Good student discounts can save student drivers an average of $337 annually on full coverage car insurance, and up to $594 per year. These discounts reward good grades by recognizing that responsible students are safer drivers.
Students must be under 25 years old and have at least a B or 3.0 GPA to qualify for a good student discount. See the requirements by company below.
Adding another driver to your family policy, comparing quotes and practicing safe driving can also help you get the best rates.
What Is a Good Student Discount?
How Much Can You Save With Good Student Discounts?
Teen and young adult drivers maintaining good grades can save between $148 and $594 annually on full coverage car insurance, depending on their insurer. Based on our analysis of teen driver rates, here's what students can expect to save:
Annual Savings for Teen/Young Drivers by Company:
- Allstate: $594/year (22.5% discount on $2,640 teen premium)
- State Farm: $540/year (25% discount on $2,160 teen premium)
- GEICO: $378/year (15% discount on $2,520 teen premium)
- Nationwide: $279/year (15% discount on $1,860 teen premium)
- Travelers: $238/year (12% discount on $1,980 teen premium)
- Progressive: $180/year (7.5% discount on $2,400 teen premium)
- USAA: $148/year (10% discount on $1,476 teen premium)
These savings are helpful for young drivers who have the highest insurance premiums.
How to Qualify for Good Student Discounts
Insurers require similar basic qualifications, though specific requirements vary by company. Learning these criteria helps students maximize their eligibility across multiple insurers.
- 1
GPA Requirements and Grade Documentation
The standard requirement across most insurers is a minimum 3.0 GPA or "B" average. Some companies offer more flexible options below:
- Most Restrictive: 3.0 GPA minimum (State Farm, Nationwide, Progressive, USAA)
- Most Lenient: 2.7 GPA minimum (Allstate Smart Student Discount)
- Alternative Qualifications: Dean's List, Honor Roll, or top 20% class ranking
- 2
Age Limits and Student Status
Age restrictions vary significantly between companies, affecting long-term eligibility:
- Most Generous: Under 25 (State Farm, Allstate, USAA)
- Standard: Ages 16-24 (Nationwide)
- Most Restrictive: Under 23 (Progressive)
Full-time enrollment in high school, college, or vocational school is universally required. Some companies extend eligibility to graduate students, while others limit coverage to undergraduate programs.
- 3
Proof Requirements and Documentation Process
Insurance companies require regular verification to maintain discount eligibility.
Accepted Documentation:
- Official transcripts or current semester report cards
- Dean's List certificates or honor roll verification
- Administrator-signed grade verification forms
- Standardized test scores (for home-schooled students)
Renewal Timeline:
- Companies require proof each semester, some accept annual verification
- Documentation typically needed within 30 days of policy renewal
What Insurance Companies Offer Good Student Discounts?
Major insurers offer varying discount amounts and requirements, so we recommend doing a company comparison to maximize savings.
State Farm
State Farm offers one of the most generous good student discount programs, providing up to 25% savings on auto insurance premiums.
Requirements:
- Minimum 3.0 GPA, top 20% class ranking, or Dean's List/Honor Roll
- Under 25 years old
- Full-time high school or college enrollment
- Proof required each semester
Documentation: Official transcripts or report cards from the most recent semester. Home-schooled students qualify through top 20% scores on national standardized tests taken within 12 months.
Special Features: Multiple qualification pathways beyond GPA, including class ranking and academic honors. The discount continues until age 25 with maintained academic performance.
GEICO
GEICO provides up to 15% savings on certain coverages with straightforward qualification requirements.
Requirements:
- "B" average or better, or Dean's List qualification
- No specific age limit mentioned
- Full-time high school or college enrollment
- Continuous grade maintenance required
Documentation: Academic record verification required, though specific format requirements aren't detailed publicly.
Important Restriction: Traffic violations will nullify the student discount entirely. The discount applies whether the policy is in the student's name or a parent's name.
Allstate
Allstate offers significant savings potential with up to 22.5% average discounts (some cases up to 35%).
Requirements:
- Minimum 2.7 GPA (most lenient in the industry)
- Under 25 years old and unmarried
- Full-time enrollment required
- Proof required at each renewal
Documentation: Official transcripts or report cards showing qualifying GPA.
Alternative Options: Students can qualify through Allstate's teenSMART driver education program (~$120 cost) or by attending school 100+ miles from home. Home-schooled students need 20th percentile or higher standardized test scores.
Nationwide
Nationwide provides an average 15% discount with potential savings up to 25% in some cases.
Requirements:
- Minimum 3.0 GPA (B average)
- Ages 16-24 (9-year eligibility window)
- Full-time high school, college, or graduate student status
- Updated proof at each renewal
Documentation: Current transcript plus school administrator-signed verification form.
Strict Enforcement: Discounts are immediately removed if grades drop below B average. Home-schooled students must demonstrate top 20% national performance on standardized tests.
Progressive
Progressive offers more modest savings starting at 5%, averaging around 7.5% across states.
Requirements:
- Minimum 3.0 GPA (B average)
- Under 23 years old (most restrictive age limit)
- Full-time enrollment; cannot be primary named insured
- Unmarried status required
Documentation: Report card or transcript showing qualifying GPA, with periodic re-verification.
Important Limitations: Student must be listed on parent's or guardian's policy. Discount not available in California.
USAA
USAA provides up to 10% savings exclusively for military families with flexible qualification criteria.
Requirements:
- Minimum 3.0 GPA, top 20% class ranking, Dean's List, or Honor Roll
- Ages 16-25 with valid driver's license
- Full-time enrollment in high school, college, or vocational-technical school
- Proof required each semester
Documentation: Report cards, transcripts, honor roll certificates, or dean's letters accepted.
Restrictions: Available only to military personnel, veterans, and eligible family members. Not available in Hawaii or North Carolina. Home-schooled students qualify through top 20% standardized test scores.
Student Discount Stacking Strategies
Maximizing savings requires understanding how good student discounts combine with other available discounts. Many insurers offer multiple student-specific discounts that can be combined:
- Distant Student Discount: Available when attending school 100+ miles from home without a vehicle. Can often combine with good student discounts for maximum savings.
- Driver's Education Discount: Completion of approved driver education courses qualifies for additional 5 to 15% discounts at some companies, stackable with good student discounts.
- Multi-Policy Discounts: Students can often benefit from family bundling discounts while maintaining their individual good student qualification.
Graduate School and Continuing Education Considerations
Good student discounts often extend into graduate school, but requirements change:
Graduate Program Eligibility:
- Insurers cover graduate students under good student discounts
- Professional programs (medical, law, business school) qualify
- Part-time graduate programs don't meet full-time requirements
Continuing Education:
- Vocational and technical programs often qualify if they're full-time
- Accredited certificate programs from colleges and universities qualify
- Online degree programs qualify if from accredited institutions
State-Specific Discount Requirements & Restrictions
Good student discount availability and amounts vary by state due to insurance regulations.
Highest Average Savings by State:
- Vermont: 18.5% average savings
- Wyoming: 16.4% average savings
- Kentucky: 15.8% average savings
Limited or No Savings:
- Hawaii: 0% savings due to state regulations
- North Carolina: 2.3% average (severely limited)
- California: Limited availability with some insurers
State-Specific Considerations:
- Some states require specific documentation formats
- Certain states limit discount percentages through regulation
- Regional insurers offer competitive alternatives to national companies
Good Student Discount Issues: What if Your Grades Drop?
Temporary academic struggles don't have to end good student discount eligibility:
- Immediate Actions
Contact your insurance agent right away and review your policy's grace period terms. Look for alternative qualifications like class ranking or standardized test scores, and document any circumstances that affected your grades. - Valid Reasons for Appeals
Insurance companies accept appeals for medical issues, family emergencies, financial hardships, documented learning disabilities, and study abroad documentation delays. - Appeals Process
Submit a written request with supporting documentation like medical records or academic accommodation letters. Follow up regularly with your case manager for updates.
Alternative Discount Options During Academic Struggles
When good student discounts aren't available, other savings opportunities exist:
Alternative Discounts:
- Safe driving discounts for maintaining clean driving records
- Defensive driving course completion discounts
- Low mileage discounts for students who don't drive frequently
- Telematics programs that monitor safe driving behavior
Temporary Solutions:
- Consider higher deductibles to lower premiums
- Adjust coverage levels while maintaining state minimums
- Explore family policy adjustments
- Research state-specific insurance assistance programs
Other Ways Students Can Save
Here are other ways students and teens can save beyond good student discounts:
- 1
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.
- 2
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.
- 3
Pay in full
No-down-payment car insurance allows you to get insured with the lowest upfront cost. But paying full and upfront will save you money in the long run.
- 4
Consider pay-per-mile insurance
Students who drive less than 12,000 miles per year may save on car insurance by opting for pay-per-mile insurance. With this, premiums will depend on mileage and driving habits.
- 5
Shop around
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.
Auto Insurance Discounts for Students: FAQ
Discounts vary per driver, insurer and location. MoneyGeek answers some frequently asked questions to help students understand how car insurance discounts work.
How much is a good student discount on car insurance?
Good student discounts typically range from 5% to 25% off your car insurance premium, depending on the insurer. For teen drivers, this translates to annual savings between $148 and $594. State Farm offers the highest discount at up to 25%, while Allstate provides up to 22.5% savings. GEICO and Nationwide offer up to 15%, and Progressive provides the smallest discount at 5-10%.
What kind of discount can students use?
Students can access several types of car insurance discounts beyond good student discounts. These include distant student discounts for those attending school 100+ miles from home, driver's education discounts for completing approved courses, multi-policy discounts when bundling with renters insurance, and safe driver discounts for maintaining clean driving records. Students can often stack multiple discounts for maximum savings.
How do you get a student discount for car insurance?
The best way to get a student discount for car insurance is to ask your insurance provider if you qualify for any discount offers. You can also check out the websites of insurance companies to see what discounts are suitable for your needs and circumstances.
Can I get a good student discount if I'm on my parents' policy?
Yes, most insurers allow students to receive good student discounts while listed on their parents' policies. This is often the most cost-effective approach for young drivers.
What happens to my discount when I graduate?
Good student discounts typically end when you're no longer enrolled as a full-time student or reach the maximum age limit (usually 25). Some insurers offer graduate discounts or other programs for recent graduates.
Do online degrees qualify for good student discounts?
Yes, accredited online degree programs typically qualify for good student discounts, provided you meet the full-time enrollment and GPA requirements.
Can home-schooled students get good student discounts?
Most insurers accommodate home-schooled students through standardized test scores. Students typically need to score in the top 20th percentile on national standardized tests to qualify.
Can I combine good student discounts with other discounts?
Yes, good student discounts typically stack with other available discounts like safe driver, multi-car, and bundling discounts, maximizing your overall savings.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.