What Is the Good Student Discount?

Is a driver on your policy in high school or college? By maintaining a "B" average or better, you can get the good student discount on auto insurance.
smiling good student in classroom

Are you or your teen performing well in school? Your auto insurance company may reward you with a good student discount. This is when insurers lower car insurance rates for college or high school students because of their high grade point average or GPA.

With the good student discount, you can knock a sizable percentage off of your rates. For instance, GEICO offers up to 15% savings. Typically, a student would need to hold about a “B” average for the discount to kick in. The precise grade point average (GPA) depends on your carrier.

In this article, you’ll learn everything about good student discounts. This’ll include the following key points:

  • How it works
  • How to get it
  • Who offers the discount
  • Other ways that young drivers can save money
  • Answers to frequently asked questions about the discount

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How the Good Student Discount Works

Most insurers offer various discounts for their customers to lower their rates. Each one has the potential to reduce your rates by a certain percentage. Not only that, but you should be able to combine them to save a significant amount of money on your car insurance.

Ultimately, the good student discount works similarly to any other. To qualify, you must fulfill a set of specific requirements. Each insurer will have its own criteria for students to be eligible.

How to Qualify

You can get a good student discount if you meet your insurance company’s requirements. Qualifying for the discount is pretty simple: perform well in school.

Each provider has its own program rules. However, they all look at grades. Remember that the specific grade point averages and numerical values will vary depending on the company. Here’s a short list of what most carriers require:

  • Age 16 to 24. The discount is typically only for people that are college- or high school-aged. If you’re a college student over the age of 24, chances are you might not qualify.
  • Maintain a “B” average. A “B” average is the constant among most insurers to qualify. According to the College Board, a “B” average is equal to about a 3.0 GPA.
  • Be a full-time student. Typically, you must be a full-time student to be eligible.

Required Proof of Eligibility

Your insurer will require evidence proving that the student qualifies. Nationwide refers to this as “proof of academic achievement.” Here are the different types of academic achievement you may be asked to provide:

  • Current or recent report card/transcript
  • Form with a school administrator’s signature

Homeschool Students Can Also Qualify

Homeschool students can also qualify. But their requirements are a bit different because of their unique situation. It’s also a little harder for homeschool students because they normally need to provide standardized test scores.

For homeschool students to qualify, they’ll need to provide recent PSAT, SAT, or ACT scores. The student will normally need to be in the top 20% of national scores to qualify.

Companies Offering the Good Student Discount

Most insurance companies offer a good student discount. In fact, each of the nation’s top 10 insurers offer it. But not all of them do it the same way. Some companies will offer you more savings than others. Providers might have different requirements as well.

Below is a list of each of the major insurance carriers and their good student discount programs:


GEICO has a good student discount that’s part of its “Driver’s Education Discounts” category. It rewards drivers with a good academic record up to 15% in savings on their insurance.

Young drivers can also take advantage of the Driver’s Education Discount, where you will need to complete a driver’s ed course. GEICO also offers a discount if younger drivers take a defensive driving course. This can also help new drivers lower their risk by showing that they’re taking steps to get better at driving.

State Farm

State Farm has a program for students that can save you up to 25% on your policy. The insurer tells customers that the discount could last until the student turns 25. As normal, students must provide a recent report card or transcript to verify their good grades. Homeschoolers will need to provide a standardized test result from the last 12 months showing that they’re in the nation’s top 20% of scores.


Progressive saves customers 10% on average when a student maintains a “B” average across all of their classes. The insurer also offers a chance for you to save when you have a student away at school discount. You can get this if your kid is away at college and leaves the car at home.


Allstate has it, too, but by a different name. It calls this discount the “Smart Driver Discount.” The insurer doesn’t say exactly how much you can save. But you can be sure it’s worth your while to see if you’re eligible. To qualify with Allstate, students will need to have at least one of the following:

  • Pass the teenSMART® driver education program (this is the driver’s education discount)
  • Be a full-time student
  • Get good grades i.e., “B” or 3.0 average
  • Attend a school at least 100 miles away from home (this is the student away at college discount).


Nationwide is a company that offers savings for students that do well in school. If you do, it will reduce your premium up to 15%. However, your savings depend on the driver and the state you live in. Speak with your agent to find out exactly how much you can save.

To qualify, students must maintain a “B” average and present either a report card or a signature from a school administrator. Homeschool students must provide a standardized test that scores in the nation’s top 20%.


USAA’s good student discount provides savings for families with students with at least a B grade point average. You can get this discount everywhere except Hawaii and North Carolina. USAA doesn’t say how much you can save on their website. But your agent may be able to tell you how much this discount can knock off your premium.


Farmers allows drivers under the age of 25 in college or high school to receive a good student discount. You must provide proof of academic achievement to qualify. Farmers’ website doesn’t say how much you will save. But, based on how much the other companies offer, you’ll likely get anywhere from 10-15% knocked off your rates from the discount.


Full-time students can get a good student discount with Travelers. You must maintain at least a “B” average to qualify for the discount. They don’t name an exact percentage for the discount.

Liberty Mutual

Liberty Mutual offers savings for full-time students that maintain a “B” average or higher. You’ll need to provide proof of academic achievement to get the discount. This could be a recent transcript or a document that a school administrator has signed. Liberty Mutual doesn’t tell you how much you’ll save on its website. But you can always speak with an agent to get an idea of the exact amount.

American Family

American Family offers one to pupils between the ages of 16 and 25 with at least a “B” average. AmFam adds the wrinkle that students must appear on the “Dean’s List,” “Honor Roll,” or an equivalent.

Farm Bureau Financial Services

Farm Bureau lowers rates when a student driver maintains a “B” grade point average in school. Savings for vary by state and situation. You’ll need to reach out to a Farm Bureau representative or an agent to learn more.

Frequently Asked Questions

Q: What is a good student discount?

A: Good student discounts are those offered by auto insurance companies to students or families of students with good grades. Each insurer has its own rules and qualifications. Refer to their websites for more information.

Q: How much can you save with a good student discount?

A: How much you can save depends on the insurer that you do business with. But you should expect to save anywhere from 10-15%. This range of savings is based on the amounts that each insurance company lists on their websites.

Q: Which insurers offer discounts for good grades?

A: Every major insurer offers a discount when student drivers bring home good grades. It’s also likely that small or local insurers have some sort of discount for high-performing students. If you’re unsure of whether your provider offers it, you’ll want to check out its website or speak with your agent. In either place, you may also get an idea of how much you can save.

Q: How old do you have to be to qualify?

A: You’ll need to be anywhere from 16 to 24 years old to qualify. This means that both high school and college students can qualify. Some insurers, such as State Farm, allow you to be up to 25 years old.

Q: How will your insurance company verify your GPA?

A: Students will usually need to maintain a “B” average to qualify for the discount. You’ll need to prove that you or the student on your policy have good grades. Insurers will want a copy of the student’s transcripts or a signature from a school administrator. Homeschool students will generally need to provide a PSAT, SAT, or ACT score that ranks in the top 20% in the nation.

Q: Can you qualify if you take online courses or study at home?

A: Absolutely. Insurers discount premiums for many forms of learning. You’ll always need to prove your eligibility. But if you’re any kind of student, perhaps vocational training, you probably qualify for this discount if your grades are good. If you’re unsure, it never hurts to ask your agent.


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