Save on Your Teen’s Car Insurance with a Good Student Discount (Save Some Dough With That 3.0!)
Did you know the State Farm Good Student Discount (or ones offered by other car insurance providers) can help you or your child save on car insurance? Here’s how!
Those good grades pay off! Save money with a State Farm car insurance Good Student Discount. 📚🚘
If you have a young driver at home, then you know that car insurance can be costly. Forbes recently conducted an analysis of different car insurance companies and found that adding a young driver to your household will cost you an average of $3,360 a year as of 2024! These rates may not decrease much until your child turns 25 years old. That’s a lot of money to spend!
Parents have enough to worry about without adding the extra burden of high car insurance bills. Fortunately, if your kiddo has been achieving good grades, there may be a way to save. You may have heard of the State Farm Good Student Discount or similar incentives offered by other car insurance providers. These discount programs can usually save you anywhere from 3% to 25%.
If you’ve been overpaying for car insurance (or looking for an incentive to get your child to study), here is a list of car insurance companies that offer student discounts to high-performing high school and college students.
Car insurance companies with a Good Student Discount:
1. State Farm Good Student Discount can save you up to 25%.
If you have a high-achieving student at home, State Farm will offer them up to a 25% discount on car insurance. That’s not all!
If your child is under 25 years old and has not had a moving violation in 3 years, they can save up to 15%. Plus, you can use the State Farms Drive Safe & Save app to save your household members up to 30%. Young drivers may also save on the cost of insurance if they live away at school and only use their car during school vacations and holidays.
Call your agent to see if your child qualifies for any of these helpful perks!
2. The Progressive Car Insurance Good Student Discount is for students with a “B” average or better.
Students 23 and under with a “B” average are eligible for Progressive’s Good Student Discount which is usually about 10%. To qualify, the student must be under someone else’s insurance policy, like their parent’s.
Progressive also offers discounts to teen drivers 18 and under and to students aged 22 and under who live more than 100 miles from their homes. Talk to your Progressive agent for more information.
3. The Geico Good Student Discount makes car insurance more affordable for high school and college kids.
This insurance company claims that students can save up to $200 by switching to Geico, and they have some of the most affordable premiums on our list. To make their low rates even better, Geico has a car insurance Good Student Discount available to students who can maintain a “B” average or better. Also, if a student is under the age of 22 and has not had an accident in the past 5 years, they also qualify for Geico’s Good Driver Discount.
Students mat be eligible for other special rates too. These include membership discounts for sororities, fraternities, honor societies, alumni organizations, and other student organizations. Contact a Geico agent today to see if these discounts are available in your state.
4. Students with a 3.0 GPA or better qualify for the AAA Good Student Discount.
AAA offers a plethora of ways that your household can save on car insurance. One of these ways is the Good Student Discount. Students with a 3.0 GPA or better are eligible and can expect to save around 10%.
AAA also has a Teen Smart Discount. If you have a new driver, they have until age 19 to complete the program and receive a discounted rate. Visit AAA’s website for more information.
5. The USAA Good Student Discount is available to those aged 16 to 25.
USAA is an insurance company that serves military veterans and their families. To be eligible for the USAA Good Student Discount, one must be a full-time student and between the ages of 16 to 25. The discount is not automatically renewed so the driver in your family will need to apply each year.
Each student must satisfy one of the following requirements:
- Be in the upper 20% of their class
- Maintain a B-average or higher
- If a number scale is used, the student must be ranked a 3 out of 4 points
- Be on the dean’s list or the honor roll
Go to your account on usaa.com or in the USAA Mobile App to apply. You can also fill out this form.
According to GetJerry, the discount is 3% off a policy. That might not seem like much, but USAA tends to have lower starting rates than many of the insurance companies on our list.
6. The Allstate Good Student Discount qualifications are the most lenient on the list.
The Allstate Good Student Discount is actually called the Smart Student Discount. It’s the most flexible policy on the list. A student only needs to be unmarried, under 25 years old, and meet one of the following requirements:
- Is a full-time student getting good grades
- Successfully completed the teenSMART driver education program
- Attend a school over 100 miles away from where your car is garaged
Contact Allstate for an exact quote.
7. The Nationwide Good Student Discount is available to “B” students under the age of 24.
If you have a high-achieving student at home, help them save on their Nationwide car insurance. Students between the ages of 16 and 24 that maintain a “B” average are eligible for the discounted rate. These students must provide proof by showing their report card or getting a signed form from a school administrator.
Those who are homeschooled can snag the discount by showing they scored in the top 20% on a standardized test like the ACT or SAT. For more information, contact a Nationwide representative.
8. The Liberty Mutual Good Student Discount is just one of many discounts offered by the company.
Student drivers with a “B” average qualify for the Good Student Discount at Liberty Mutual. If they live at school and only use their vehicle on school vacations and holidays, they might also qualify for the Student-Away-At-School Discount.
It’s usually the most cost-efficient to add a student driver to a parent’s insurance policy, given that the parent is also a good driver. If you take this route, your family may also qualify for Liberty Mutual’s Multi-Policy or Multi-Car discounts!
9. Show proof of performance to get The Farmer’s Good Student Discount.
Farmer’s offers a Good Student Discount to full-time students in high school or college. To score the discount, your school records will be used to prove one of the following:
- Ranked 20% or higher in your class
- Had a GPA of 3.0 or better
- Ranked 20% or higher on standardized testing
- Was included on the “Dean’s List” or “Honor Roll”
10. Save money with the American Family Insurance Good Student Discount.
American family offers a ton of discounts to help you save. One of these discounts is their Good Student Discount. To get the deal, students must be:
- A full-time student in high school, community college, four-year college, online university, or vocational school
- Be between the ages of 16 and 25
- Maintain a “B” average or rank in the top 20% of the class
- Be on the “Dean’s List,” “Honor Roll,” or comparable list that signifies academic achievement
- If homeschooled, rank in the top 20% on most recent standardized tests like the SATs or ACTs
The amount of the discount will vary by state. Speak to an American Family Insurance agent to get a quote. Don’t forget to ask about other discounts for young drivers. American Family Insurance offers many:
- Young Volunteer Discount – For those who volunteer at a non-profit 40 hours a year
- Away at School Discount – For students under 25 who live 100 miles from where their car is garaged
- Generational Discount – For families who have multiple generations with insurance policies through American Family Insurance
11. Show proof to score the Travelers Insurance Good Student Discount.
Travelers Insurance generally offers the Good Student Discount to those with a “B” grade average (3.0 GPA) or who rank in the top 20% of their class. Show proof with items like a report card, Honor Roll certificate, or a signed homeschool certification signed by the parent and homeschool certifying body. There may be age restrictions or other exceptions that disqualify a student from this special rate so talk to your Travelers Insurance agent for more information.
Like the other insurance companies on the list, Travelers also has an Away At School Discount for students who live 100 miles from where their car is garaged. Plus, the company offers a plethora of other discounts like an Electric/Hybrid Car Discount, a Safe Driver Discount, a Driver Training Discount, and a New Car Discount.
Follow these other tips to get a lower car insurance rate for a young driver:
- Shop around to get the best car insurance premium
- Add the student’s policy under the parents existing insurance as it is usually cheaper than being the main policyholder
- Maintain good grades to achieve the Good Student Discount
- Ask about other discounts like the Teen Driver Discount, Multi-Car Discount, Electric Car Discount, or Away at School Discount
- Avoid driving a very old vehicle, if possible
- Drive responsibly and avoid moving violations
Remember, the company with the highest Good Student Discount may not be the company offering the lowest car insurance premium overall. So even if you’re only familiar with the State Farm Good Student Discount, you may want to shop around to compare your options closely before deciding!
Thank you! We have Progressive and our daughter is getting her license in July and has A/B’s on her report cards! I will definitely check into it, thanks for the heads up! Ya’ll rock!
WOOHOO! 🙌 You’re welcome, Tammy S! ❤️ Glad this post popped up at the perfect time for you to check in to some discounts for your daughter!
Thanks so much for this information! Getting ready to start insuring a teenage driver – super helpful!
You’re welcome, Kristen! So glad you found this helpful! 🤗 🥰
If you have a Costco membership, check out Costco Connect! We just saved $1400 a year switching from AAA with two teens on our plan even with the same coverage we were getting. I shopped around. It was by far the best for auto insurance even when I didn’t bundle my home insurance (their quote for home was better than AAA, but worse than American National).
Oh wow! Thanks for the heads up on how you were able to save, Beth! Good to know! 🙌💕
Be very leery of Progressive. We switched to them for the savings and let them “sell” us roadside assistance also. But when my son’s old car had to be towed twice they dropped us because they said it was 2 claims as a new customer. We even asked the second time if it would affect us negatively and they said no. Ended up costing us a lot to go back to old company and very stressful. Never do business with them.
So sorry to hear about your troubles with them, Patty. One of my insurance policies is through them and we haven’t had any issues in the past five or so years. We sure appreciate the feedback on your experience – that does sound stressful. ❤️ Hoping you’ve found a company that works best for your family!
Thanks for your short article. I would also like to say a health insurance broker also works for the benefit of the particular coordinators of your group insurance policy. The health broker is given a directory of benefits needed by individuals or a group coordinator. What a broker does indeed is find individuals or even coordinators which best go with those needs. Then he offers his referrals and if all sides agree, this broker formulates legal contract between the 2 parties.