Do auto insurance companies check grades?
Do auto insurance companies check student grades? While insurers can only check public records available at the DMV, they also may request proof of grades in order to prove that the driver in question qualifies for a good student discount.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Sep 4, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 4, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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We understand how hard it can be to find affordable insurance for teen drivers. The good news is that most companies also offer a car insurance discounts for students, provided the student has a GPA of 3.5 or higher. To read about three companies with the cheapest teen auto insurance, click here.
Some auto insurance companies go even further. These companies honor students with B’s or higher with even lower rates. Insurance providers require proof of good grades and do check these grades.
The principle is that good grades demonstrate a teen’s sense of responsibility, and the good grade insurance discount can be an incentive for young drivers to remain diligent at the study desk as well as behind the wheel.
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- Many car insurance companies offer a good student car insurance discount
- In a general sense, a GPA of 3.5 or above is considered a “good” grade
- Proof of grade generally has to be provided to qualify
How Do Insurance Companies Verify Grades
Insurance companies can only access public information that is available to the DMV, and grades aren’t part of that. So most companies will request proof of good grades before offering an insurance discount for good grades, and then again at each renewal period. The necessary documentation may be provided by fax, email, or online portal, depending on the company you insure with. Even if you initially qualify for the car insurance GPA discount, since proof is also required before renewal, there are three scenarios that can take place:
- Grades stay the same or go up. Maintaining a good GPA for car insurance means that you’ll likely continue to qualify for the discount upon renewal.
- Grades go down. Most companies will withhold the discount if the student’s grades have gone down. Make sure to ask about the details of the discount when purchasing the policy.
- Teen is no longer a student. If the teen drops out of school or graduates, the good student discount will no longer apply. At this point, you’ll want to explore car insurance discounts.
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Good Student Insurance Discount Explained
According to the Children’s Hospital of Philadelphia Research Institute, because of the risks associated with young drivers, insurance providers charge higher rates for policies for teenage drivers or families who list teens as drivers on their family policy. However, many companies help customers to reduce their rates by providing a good student discount.
The GPA is calculated based on a student’s letter grades, so for a GPA of 3.5 or higher, students would need to be getting all As and Bs on their report cards. An agent may not offer it up front, but feel free to ask if it’s available and if your teen qualifies. This discount is based on certain principles:
Proof of Responsibility
Good grades indicate a student’s focus and level of responsibility. So while teens, in general, present a greater risk as drivers, not all teens present the same risk. The more focused and responsible they are at school, the most focused and responsible they’re likely to be on the road.
The Power of Incentive
Parents and insurance companies alike want to motivate teens to excel, whether at school or on the road. A good student discount can be a powerful incentive. Having good goals at school can translate into other positive life goals, safe driving included.
Assistance for Parents
In these difficult economic times, parents may struggle to meet the rising cost of living, transportation, and education. Insurance companies that offer a car insurance discount for a student with a good GPA are helping parents meet these demands safely and successfully. Make sure you ask your agent about the availability of good student discounts. To learn more about good student discounts, read our article here.
Insurance is More Expensive for Teen Drivers?
According to recent studies by the Centers For Disease Control And Prevention, the ages of 16-19 present the highest risk for traffic accidents, and the figures are even higher for males. The annual cost of the results of such accidents was estimated at almost $5 billion. It’s no wonder auto insurance companies charge a higher premium for teen drivers.
Teen drivers have the least amount of driving experience compared to all other demographics of drivers. It makes sense that the premiums would be higher for inexperienced drivers, as they are prone to more mishaps when navigating the road.
What GPA Do You Need for an Insurance Discount
Remember to ask if the good student auto insurance discount is available and if your teen qualifies. Not all agents will mention this provision upfront. Exploring available good student driver discounts is just as important as shopping for good rates and coverage. Encourage your teen drivers to maintain a GPA of 3.5 or higher for insurance to continue to qualify for this rate-reducing discount.
Regardless of if you qualify for a Nationwide good student discount, Progressive good student discount, State farm good student discount or you go with Geico good student discount, bringing proof of your grades is necessary.
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Frequently Asked Questions
Why would high school grades matter to an insurance provider?
So, why do you think that most automobile insurers offer discounts based on good grades?
Auto insurance companies may offer discounts or benefits to students who demonstrate good academic performance because they may see it as an indicator of a student’s responsibility and maturity.
However, not all companies consider grades as a factor in determining premiums.
How do auto insurance companies determine the student’s GPA for a good student discount?
Auto insurance companies typically require proof of a student’s academic standing to determine eligibility for a good student discount. This proof usually involves providing a copy of the student’s report card or transcript, demonstrating a specified level of academic achievement.
What are the typical good student discount requirements?
The specific requirements for a car insurance discount for good grades vary among insurance companies. However, common criteria include maintaining a minimum grade point average (GPA), such as a B or higher, being enrolled as a full-time student, and typically being under a certain age limit (e.g., 25 years old).
Do all insurers offer discounts on car insurance for students with good grades?
No, not all auto insurance companies provide discounts on car insurance for good grades. It’s important to check with individual insurance providers to determine if they offer this type of discount and what their specific requirements are.
How much do good grades lower car insurance premiums?
How much grades affect insurance costs and the amount of savings depends on the insurance company and the specific policy. However, it’s common to see discounts ranging from 5% to 25% off the base premium for eligible students.
Is it necessary to provide updated grades for insurance policy renewal to maintain the good student discount?
Yes, many insurance companies require updated proof of academic standing at each policy renewal to continue receiving the good student discount. They may request recent report cards or transcripts as proof of continued academic achievement.
Does GPA affect car insurance rates?
Your grades do affect your car insurance rates, since most insurers provide a good student discount.
What GPA do you need to get a discount on car insurance?
Most insurance providers require a GPA of 3.5 or better for a driver to receive a good student discount
If you’re getting a student discount on the car insurance, will they ask for the student proof after sometime?
Yes, if you’re receiving a discount for maintaining good grades, your car insurance company will typically require periodic proof of academic performance to continue applying the discount.
What grades do you need to get a discount on car insurance?
To qualify for a discount on car insurance based on academic performance, most insurance companies typically require a GPA of at least 3.0, which is equivalent to a B average.
Does the grades you have in school have anything to do with how much you or your parents pay for your car insurance?
Yes, your school grades may influence your auto premiums. Many insurance companies offer a good student discount, which can significantly reduce the cost of car insurance premiums for families with young drivers.
How does being a student affect car insurance?
Car insurance for college students is typically higher than for older adults, because younger drivers are riskier to insure.
Is car insurance cheaper for students?
Young drivers face higher insurance premiums than older, more experienced drivers due to their higher risk of accidents. However, maintaining good grades can lower car insurance rates as it allows you to qualify for certain discounts.
What is a good student discount on car insurance?
A good student discount can reduce car insurance premiums for young drivers who maintain high academic standards.
Which auto insurance companies can help you get a discount on car insurance for good grades?
Several major auto insurance companies offer discounts on car insurance for good grades, commonly referred to as good student discounts:
- Auto Owners good student discount
- Liberty Mutual good student discount
- NJM good student discount
- USAA good student discount
There’s also the AAA good student discount for good GPA and the smart student discount with Allstate.
Does Geico have student discounts?
Geico provides a discount for students who maintain a “B” average or better. For younger drivers, completing a driver’s education course can also lead to savings on car insurance through Geico.
How much is a good student discount for car insurance?
So, how much is a good student discount? Most insurers offer discounts between 10% and 25% for students who meet their good student criteria, which typically means maintaining a B average (a GPA of 3.0 or higher) or being in the top 20% of their class.
What is State Farm student away at college?
State Farm offers discounts for students away at school. The discount is typically available to students who are under 25 years old and attending a college or university that is more than 100 miles away from their home.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.