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 the good student discount. This is when insurers add a discount to a college or high school student’s car insurance rates because they’re getting good grades in school.

The good student discount can take a lot off your insurance premium. 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 exact grade point average (GPA) depends on which carrier you have.

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

  • How the discount works
  • How to get the good student discount
  • 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 types of discounts for their customers to lower their rates with. Each one has the potential to lower your rates by a certain percentage. You should be able to combine discounts to save a significant amount of money on your car insurance.

The good student discount works similarly to all other discounts. You must fulfill a certain set of requirements to qualify for it. Each insurer will likely have different requirements for students to get the discount.

Good Student and Safe Driver

One other thing to consider is that your insurer might combine the good student discount with the safe driver discount. The safe driver discount is for people who maintain a clean driving record for an extended time. Keep in mind that this discount isn’t a substitute for having a clean driving record. Tickets and accidents on your record can skyrocket your rates and cause you to be a high-risk driver.

How to Get the Good Student Discount

You can get a good student discount by qualifying for it with your insurance company. Qualifying for the discount is pretty simple: you must be a student with good grades.

How an insurer defines good grades will depend on who you work with. However, there are a few important aspects that insurers consider. Remember that the specific grade point averages and numerical values will vary depending on the company. Here’s what insurance companies will usually want from you to qualify for the good student discount:

  • 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 qualify for this discount.

How to Prove That You or Your Teen Qualifies

Now that you know what you need to qualify for the good student discount, you’re probably wondering what you need to show your insurer to prove that you qualify. Your insurer will need some sort of evidence to prove that the student can get the discount. Nationwide refers to this as “proof of academic achievement.” Here are the different types of academic achievement that you can provide:

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

How Homeschool Students Can Qualify

Homeschool students can qualify for a good student discount. 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.

Who Offers the Good Student Discount

Most insurers offer a good student discount. In fact, each of the nation’s top 10 insurers offer this discount. 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 company and info on how they run their programs:


The good student discount is part of GEICO’s “Driver’s Education Discounts” category. They reward 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’s good student discount could save you up to 25% on your policy. They also tell customers that the discount could last until the student turns 25. As normal, they want students to 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 offers a good student discount that saves their customers 10% on average. They want the student to maintain a “B” average across all of their classes. Progressive also offers a student away at school discount for you to save extra. You can get this if your kid is away at college and leaves the car at home.


The Allstate good student discount goes by a different name. They refer to this discount as the “Smart Driver Discount.” Allstate doesn’t say exactly how much you can save. But you can be sure it’s worth your while to see if you are 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 (this is the good student discount)
  • Attend a school at least 100 miles away from home (this is the student away at college discount).


Nationwide is a company that offers good student savings. You can save up to 15% with Nationwide’s discount. The size of the discount depends on the driver and the state you live in. Be sure to 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%.


The USAA 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 Insurance allows drivers under the age of 25 in college or high school to receive a good student discount. You must provide proof of your good grades to qualify. They don’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 Insurance. 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 a good student discount 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 their website. But you can always speak with an agent to find out the exact amount.

American Family

American Family offers the good student discount 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

The Farm Bureau good student discount applies when a student driver maintains a “B” grade point average in school. Savings for this discount vary by state and situation. You’ll need to reach out to FBFS 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 insurance companies offer the good student discount?

A: The good news is that so many auto insurance companies offer this discount that it’s impossible to list them all here. The best news is that each of the top 10 auto insurers offer this discount. But they all have their own rules and requirements. So, ask your agent or check your insurance provider’s website for more info.

Q: How old do you have to be to qualify for a good student discount?

A: You’ll need to be anywhere from 16 to 24 years old to receive the good student discount. 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 to keep the discount.

Q: How will your insurance company verify your kid’s GPA for a good student discount?

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 get this discount 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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