Updated: November 10, 2025
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Good student discounts save drivers aged 16 to 25 between $148 and $780 annually on car insurance premiums. State Farm has the highest good student discount percentage at 25%. Compare rates from several companies after the discount to find your lowest cost.
Insurers require a 2.7 to 3.0 GPA, full-time enrollment and students must be under age 25 to qualify. See below for exceptions and homeschool requirements.
Students can combine academic discounts with multi-policy and safe driver savings for maximum insurance cost reductions.
Good student discounts cut 10% to 25% off auto insurance for student drivers ages 16 to 25 who maintain strong grades.
High school, college and grad students qualify. Most insurers want a 2.7 to 3.0 GPA minimum. Some accept Dean's List or top 20% class ranking instead.
Annual savings run $148 to $780 depending on your insurer and premium. Young drivers pay brutal rates, making these discounts important. Our teen driver rate analysis shows these average savings:
Annual Savings for Teen or Young Drivers by Company:
Below are the companies with the best good student car insurance discounts. Each company has unique requirements, so confirm you can meet the qualification standard. Since discount amounts vary across insurers, compare several companies to find your best overall rate.
State Farm's good student discount cuts premiums by up to 25%, one of the most generous programs available.
Requirements:
Documentation: Submit official transcripts or report cards from your most recent semester. Home-schooled students can qualify with top 20% scores on national standardized tests taken within the past year.
Special features: You can qualify through GPA, class ranking or academic honors. The discount stays active until you turn 25 as long as you maintain your academic standing.
GEICO cuts up to 15% off certain coverages with straightforward rules.
Requirements:
Documentation: Academic record verification required. GEICO doesn't publish exact format requirements.
Important restriction: One traffic violation kills the discount completely. Works on policies under your name or your parent's name.
Allstate has a strong good student discount of 22.5%.
Requirements:
Documentation: Submit official transcripts or report cards showing your qualifying GPA.
Alternative options: You can also qualify through Allstate's teenSMART driver education program (costs around $120) or by attending school over 100 miles from home. Home-schooled students need to score in the 20th percentile or higher on standardized tests.
While they don't list an official number on their website, MoneyGeek found that Nationwide has a 15% average good student discounts through the quoting process.
Requirements:
Documentation: You'll need your current transcript plus a verification form signed by a school administrator.
Strict enforcement: Your discount drops immediately if your grades fall below a B average. Home-schooled students must score in the top 20% nationally on standardized tests.
Progressive's good student discount starts at 5% and averages around 7.5% across states.
Requirements:
Documentation: Submit report card or transcript with qualifying GPA. Periodic reverification required.
Important limitations:
USAA doesn't officially publish a good student discount, but we found offers up to 10% off for military families, with multiple ways to qualify. While this discount is lower, USAA has very low rates for those who qualify, so your rate will be lower even with a smaller discount.
Requirements:
Documentation: Submit report cards, transcripts, honor roll certificates or dean's letters.
Restrictions:
Most insurers require a 3.0 GPA, full-time enrollment and students under 25. You'll need official transcripts or report cards as proof.
Most insurers set a 3.0 GPA minimum, though some companies are more flexible:
Most restrictive: 3.0 GPA minimum (State Farm, Nationwide, Progressive and USAA)
Most lenient: 2.7 GPA minimum (Allstate Smart Student Discount)
Alternative qualifications: Dean's List, Honor Roll or top 20% class ranking
If your grades slip below the good student discount requirements, don't panic. Most insurers offer a one-semester grace period. when grades suffer due to medical issues, family emergencies, financial hardships, documented learning disabilities. Contact your insurer immediately to explore a temporary extension while working to improve your GPA.
Age cutoffs differ by company, which affects how long you can keep the discount:
Most generous: Under 25 (State Farm, Allstate and USAA)
Standard: Ages 16 to 24 (Nationwide)
Most restrictive: Under 23 (Progressive)
You'll need to be enrolled full-time in high school, college or vocational school. Graduate students qualify with some insurers but not others.
You'll need to verify your grades regularly to keep the discount active.
Accepted Documentation:
Renewal Timeline:
Good student discounts apply to graduate school, certification programs and continuing education programs, though requirements differ:
Graduate Program Eligibility:
Continuing Education and Online Students:
Homeschooled students qualify for good student discounts through standardized test scores:
Most insurers process good student discount applications within five to 10 business days. You'll receive confirmation via email or mail once they've reviewed and approved your documentation.
Call customer service or log into your online account portal. Most insurers have dedicated education departments that handle student discounts more efficiently than general customer service representatives.
Tell your insurer you want to apply for the good student discount and confirm you meet the basic requirements like age limits and GPA thresholds before proceeding.
Upload or mail official transcripts, recent report cards showing your GPA or certificates from honor roll programs. Some insurers accept standardized test scores as alternative proof of academic achievement.
Accepted documentation:
Most insurers process good student discount applications within five to 10 business days. You'll receive confirmation via email or mail once they've reviewed and approved your documentation.
Your updated policy documents will reflect the new discount, and you should see the savings on your next billing statement. Set calendar reminders to resubmit proof each renewal period.
*Good student discounts require ongoing maintenance through regular proof submission each semester or annually, depending on your insurer.
Good student discount amounts differ by state based on local insurance regulations.
State-Specific Considerations:
Highest Savings Rate by State:
Limited or No Savings:
Stack good student discounts with other savings to maximize value. Many insurers allow multiple student-related discounts simultaneously:
When a good student discount isn’t available, other ways to save include these alternative discounts:
Maintaining a clean driving record can save you hundreds of dollars each year. Most insurers offer discounts to drivers who avoid accidents and traffic violations for at least three to five years.
Completing an approved defensive driving course, often available online, can cut your premium by 5% to 10%. The discount usually stays active for about three years, making it a practical way to save long term.
If you drive less than 7,500 miles a year, you may qualify for a low mileage discount. Students who only use their cars for short trips, such as driving to campus and back home, often benefit the most.
Some insurers offer mobile apps that track how you drive, measuring habits like braking, acceleration, and phone use. Safe driving through these programs can earn discounts of up to 30% over time.
Here are more ways students and teens can save beyond good student discounts:
Young drivers usually pay higher insurance rates because of limited experience. Instead of buying a separate policy, adding a student to an existing plan is the cheapest car insurance option for young drivers.
Different rates apply by age. For example, the cheapest car insurance company charges $2,462 per year for 19-year-olds, while the most affordable policy for 22-year-olds costs $1,562 annually.
Keeping a clean driving record helps lower your costs over time. A violation or accident on your driving record can quickly raise your premiums.
No-down-payment car insurance offers low upfront costs, but paying your premium in full usually saves more in the long run.
Students who drive less than 12,000 miles a year may save by choosing pay-per-mile insurance. Premiums depend on total mileage and driving habits.
Automatic payments prevent missed bills that could lead to cancellation and may come with a small discount. Many insurers offer 2% to 5% off for using autopay.
The best car insurance company depends on your personal needs and situation. Compare insurance quotes from multiple insurers to find the best rate.
Good student discount policies often raise questions about eligibility, requirements, and savings. Here are clear answers to the most common ones:
It’s usually cheaper to stay on your parents’ policy because of shared premiums and family discounts. If you’re under 21, live at home during breaks, or regularly use a family car, staying on their plan makes sense. Once you graduate or move out permanently, it’s time to get your own policy.
Many insurers give one-semester grace periods when grades temporarily drop below requirements. Call your insurer within 30 days about options. They may accept alternate qualifications like test scores or grant short extensions. Student services departments help more than general customer service lines.
Most major insurers extend good student discounts to homeschooled students. Accepted documentation may include SAT scores of 1,200 or higher, ACT scores of 26 or above, dual-enrollment transcripts with at least a 3.0 GPA, or certified educator portfolio assessments. You’ll need to renew each year with updated records.
Discount amounts vary by state because insurance regulations differ. Vermont offers the highest at 19%, while Hawaii doesn't allow this discount. Other strong savings include Ohio at 17%, Michigan at 16% and Texas at 15%. Massachusetts caps it at 5%, and California allows up to 20%. Check with your state insurance department for the exact limits.
Most insurers extend the benefit through graduate school until age 25, though some go up to 26. Professional students may qualify beyond that. You must maintain full-time enrollment and good academic standing. For example, State Farm covers PhD students through age 29. Contact your insurer’s education department to confirm eligibility.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
