Insurance 101 — Car Insurance Discounts For Students

Car insurance is expensive for everyone, but it is especially costly for people under the age of 25. But all is not lost — you still have a chance to make that monthly premium go down in a few ways:

The Good Student Discount

One reason people under the age of 25 have such high premiums is they get into more accidents that older drivers. It’s just a fact. Insurance companies, however, have found that students who get better grades get in fewer accidents. So, by proving you are a good student, you can get a lower premium!

In order to qualify for this discount, a student under 25 must meet several criteria:

· Enrolled full-time at a high school or college/university

· Maintain at least a B average (3.0 GPA), or be on the honor roll or Dean’s list

· Provide other accepted proof of good performance if home-schooled

There are two main ways to prove your academic record:

· Send a report card to your insurance company

· Send a letter signed by your school administrator to your insurance company

Home-schooled students are still eligible for this discount, but they will have to prove their academic success in other ways, such as scoring in the top 20% in certain standardized tests, such as the SAT or ACT.

The big secret? Even if you or your student doesn’t qualify for this discount right now, they can improve their grades or test scores and obtain the discount next semester. What a great incentive to do well in school!

Resident Student Discount

If you are attending school far away from your home state or city, you may qualify for a “resident student discount”, which can offer some pretty serious savings.

To be eligible for this discount, you must plan to leave your car at home, and only drive it in the months you are home. Since most students who go to school far away are leaving their cars at home anyways, you might as well cash in on this sweet discount opportunity.

The proof for this discount varies for insurance companies, but likely they will ask for your home address as well as the address of the college or university you are attending.

Drivers Education Courses

One final secret? Taking drivers education courses. Proving to auto insurance companies that you have taken these additional courses will provide you discounts on your monthly premium. Some of these courses are only offered to students under the age of 21, but any driver can take a course in defensive driving and get a discount through that! While this tip is not specific to students, with the high premiums students are paying, any tip- unique to you or not- will come in handy!