Good Student Insurance Discount: Who Offers It, and How to Save
We compared good student discounts from Geico, State Farm, Allstate and others, and found that high school and college students can save between 4% and 20% on their car insurance by getting good grades.
Compare Affordable Car Insurance for Students
The largest good student discount can be found at Allstate. However, State Farm offers the cheapest car insurance with a student discount.
Most insurers require students to have a B average or better, or be in the top 20% of their class to earn a good student discount.
Best insurers with student discounts
State Farm has the cheapest car insurance for good students, overall. A minimum-coverage policy with a good student discount costs $71 per month, or $848 per year. That amounts to a 17% savings for good students.
While Allstate offers the largest good student discount at about 20% off the standard price, its rates are more expensive than average, even after the discount. We recommend comparing quotes from other insurers rather than going with Allstate based on the percentage discount alone.
Compare Affordable Car Insurance for Students
The typical amount you can expect to save with a good student discount is around $22 per month for minimum-coverage insurance, however good students can save up to $174 per month by shopping around at multiple companies.
Average monthly car insurance quotes for students
Company | Good student discount | Cost with discount | Cost without discount |
|---|---|---|---|
| Allstate | 20% | $134 | $167 |
| American Family | 19% | $110 | $137 |
| State Farm | 17% | $71 | $85 |
| Nationwide | 15% | $148 | $175 |
| Farmers | 15% | $245 | $288 |
| Geico | 7% | $110 | $118 |
| USAA | 4% | $105 | $110 |
Rates are based on a minimum-coverage policy in Illinois.
How do I get a good student discount?
The process of getting a good student discount on your car insurance is straightforward — the most important part is making sure your grades meet your car insurance company's criteria.
1. Get good grades
In order to qualify for a good student discount, you have to have a B average or better, or be in the top 20% of your class. This is usually based on your cumulative transcript, so you don't need to worry if you had one subpar semester.
Alternatively, you can qualify by scoring in the top 20% nationally on one of several standardized tests.
Full list of requirements for good student discount:
- Age: 16-25
- Single
- Full-time enrolled high school, college or homeschooling
-
One of the following:
- B or 3.0 GPA or top 20% in your class
- Rank top 20% on ACT, SAT, PSAT, TAP, PACT, California Achievement Test or Iowa Test of Basic Skills
2. Shop around for quotes
Many car insurance companies offer discounts for good grades, and the process of finding out what you'll pay with the discount is just like getting any other auto insurance quote. Just keep an eye out for a "good student" checkbox while you're completing the form.
Insurers with good student discounts include:
However, keep in mind that a good student discount is only one piece of what determines how much you'll pay for car insurance. Although Allstate has the biggest student discount at around 20%, its rate is still nearly twice as expensive as the cheapest option overall, State Farm.
Compare Affordable Car Insurance for Students
Cheapest car insurance with student discount
Company | Average rate | |
|---|---|---|
| State Farm | $71 |
| Geico | $110 |
| American Family | $110 |
| Allstate | $134 |
| Nationwide | $148 |
USAA is only available to active-duty military, veterans, and their family members.
3. Submit proof of your good grades
After you've found the best price and signed up for insurance, you'll need to submit proof that you're enrolled in school full time and getting good grades. Often, this will be a copy of your most recent high school or college transcript, though the exact requirement will vary by insurer.
If you are using a standardized test to qualify instead, then you can submit an official printout of your score and percentile. Freshmen in high school may have to wait for a report card, but essentially anyone else should be able to apply anytime during their schooling.
What about homeschooling?
Things are a little trickier for homeschooled students. Allstate lists in its "Good Student Discount" section that kids who are homeschooled qualify for the discount. There is no mention of homeschooling from Geico or State Farm, however.
Homeschooled students will have to ask their company directly and see if it has any specific requirements. A standardized test may be the only way for a homeschooled student to get the discount.
For some companies, including State Farm, you do not even have to be enrolled in college to earn a good student discount. If you have completed a two- or four-year degree and are under 25 years old, a cumulative transcript from your school can earn you State Farm's good student discount.
Other car insurance discounts for students
A good student discount is far from the only way for high school and college students to save on car insurance.
Frequently asked questions
Do grades affect car insurance rates?
Yes, student drivers can save between 4% and 20% on car insurance by earning a 3.0 GPA or better, or earning a spot in the top 20% of their class.
Does Progressive have a student discount?
Yes, Progressive offers a discount for students under the age of 23 who earn a B average or better. The company states that its average good student discount is 10%.
How much is the good student discount at State Farm?
Good students can save an average of 17% on minimum-coverage insurance with State Farm. The company also offers the cheapest car insurance rate for students that we found — $71 per month, including its good student discount.
How much is USAA's good student discount?
USAA offers the smallest good student discount we found, at 4%. However, it's still the second-cheapest company for minimum-coverage insurance — good students can expect to pay around $105 per month.
What GPA is needed for a good student discount?
Most companies require students to have a 3.0 GPA or better to earn a good student discount.
Methodology
To find the best good student car insurance discounts, we collected car insurance rates for men aged 18, 20 and 22 years old who live in Illinois and own a 2015 Honda Accord.
Quotes are based on the minimum coverage required in Illinois:
Coverage | Limit |
|---|---|
| Bodily injury liability | $25,000 per person/$50,000 per accident |
| Property damage liability | $20,000 per accident |
| Uninsured motorist bodily injury | $25,000 per person/$50,000 per accident |
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
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