How to Get Cheap Auto Insurance Rates for Students
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Everyone knows that drivers who are very young can pay a lot higher premiums. More experienced drivers get into fewer accidents as a general rule. Younger people are more at risk for accidents and, because of that, pose a higher risk to their insurance companies.
The good news is that if you are a young driver (or the parent of a very young driver), you have a couple of ways to help reduce these costs. Good student discounts are one way of offsetting the costs. Drivers in their late teens and early 20s can get great discounts for getting great grades. Who said that your grades did not pay off until you got out of school?
What Is a Good Student Discount?
A good student discount is not hard to understand. It is precisely what it sounds like. It basically rewards the student with lower premiums for getting good grades in school.
Since statistics show that students who get good grades are a lot less likely to get into an auto accident, auto insurance companies look at them as lower risk, and, because of this, they give savings on their premiums. Chances are, if you are a good student reading this, you already know about good student discounts. Why? Well, you are probably pretty intelligent and aware of academic and financial things, and how they intersect.
Some auto insurance companies will even extend the discount for a certain amount of time after the student gets out of school.
The amount that is taken off of premiums varies from company to company, so it is best to do some comparison-shopping to see what car insurance company is best for great students.
Driving Education Courses
While technically not a good student discount, some car insurance companies will give discounts for taking defensive driving courses. These kinds of discounts are usually only offered to young drivers and very old drivers because those are the two groups most in need of brushing up on their driving skills. The young drivers need the education because they are pretty inexperienced, and the older drivers need the education because they have forgotten a lot.
How Do You Qualify for a Good Student Discount?
- You have to be younger than 25 years of age
- You have to be enrolled full-time a college or high school
- You have to get at least a B average (3.0 GPA) or be on the Dean’s List or honor roll
- Show some proof of good performance (if you are home-schooled)
- Have a valid driving license
- Have a valid US student visa (if you are an international student)
If your grades are not yet good enough to qualify, you can try to get them up. Once they are at the necessary level, you can talk about the discount again with your insurance company.
If you look at websites of many insurance providers, you will see that the only major requirement they have for the good student discount is that you maintain a GPA of “B” average or better.
Nearly every major auto insurance company has a good student discount. If you are unsure about ways that you can save as a young driver, contact your local car insurance agent and see what they have to say about it. The only thing you have to do is log in to the insurance company website that you are a member of and contact the insurance agent who is representing you. It is not tough to do, and you can find out what you need to do in under five minutes with a short phone conversation to the agent in charge of working with you.
How Do You Prove Good Student Status?
Car insurance companies are going to want proof that you are making good grades. You will need to present a report card or a letter signed by an administrator of the school where you attend.
You could be required to show some proof of good student status each time you renew your policy, in order to keep getting the student.
Resident Student Discounts
Students who are going to be going to college outside of their home state could qualify for a resident student discount, which can offer significant savings to the policyholder.
The discount just applies if the student is planning on not driving the insured vehicle while he is away at school, but could use it in the months when she is back at home.
There is some proof required for a resident student discount, and that should be checked out with your insurance company, but will probably include at least the address of the college where the student will be going.
If you are a parent of a teen who is going off to college, think about asking for the resident student discount. It can dramatically lower the premium rate on your auto insurance coverage.