How Do Grades Affect Student Car Insurance Rates?

A student's grade point average is considered when car insurance rates are determined. Students who work hard and maintain good grades are thought to be more responsible, which is reflected by their overall GPA. Students who have a higher GPA are thought to be less of a risk than students who have an average or low GPA. Maintaining a high GPA can help you to save some money on your car insurance.

• Student drivers can often pose a great risk for insurance companies due to their inexperience in driving as well as their immaturity in decision making. Nothing can replace experience when driving; however,  if you are a responsible student, you are thought to be a more responsible driver and will be given a discount for your hard work.

• Proof of your grades is required with each premium payment to ensure that there has been no change in your GPA. High school students will need to provide their current report cards and college students will need to provide a copy of their transcripts. They want to ensure that nothing has changed, and that you are still maintaining your GPA since the last premium payment. 

• The amount of money that you will save from this discount is usually not disclosed. However, a good way to figure this out is to get a quote either online or in person prior to applying your good student discount, then add the discount to your premium; this will allow you to calculate the exact amount of the discount you are receiving.

• Good student discounts are available until the student graduates from high school or college. This discount is good for undergraduate and graduate programs as well. The student must be under the age of 25 to be eligible to receive a student discounted rate.

• Each insurance company may be slightly different on their required GPA. The average GPA that is required is a 3.0; this is a B average. However there are some insurance companies that may offer a discount for a slightly lower GPA, or may have the bar set higher than a 3.0. Call and ask your insurance representative what the requirements are for their insurance company.