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 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 discount lowers rates for college or high school students because of their grade point average or GPA. Providers offer this rich discount because students that perform well academically tend to be better drivers that get into fewer accidents and file fewer claims.

With this discount, you can knock a sizable percentage off 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 the good student discount, including 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 premium. These include savings for safety equipment, customer loyalty and safe driving. 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, these the good student discount works similarly to any other. To qualify, you must fulfill a set of specific academic requirements. Each insurer will have its own eligibility criteria.

How to Qualify

Qualifying is pretty simple: perform well in school. Insurance companies are very reasonable when it comes to expectations regarding this discount. They don’t expect straight A grades or extra work that would burden families.

Even so, each provider has its own program rules. However, they all look at student 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 companies offer car insurance discounts to families of students that do well academically. 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 insurers offering rewards for academic achievement.


GEICO offers savings for families of through its “Driver’s Education Discounts” category. It rewards young drivers between 16 and 24 with an excellent academic record up to 15% in savings on their policy.

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 25% discount for students under 25 years old. As normal, students must provide State Farm with a recent report card or transcript to verify their good grades. A 3.0 GPA or B grade average should qualify. 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 younger than 23 maintains a “B” average across all of their classes. Progressive 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.


The Allstate “Smart Student Discount.” The insurer says you can save up to 20%. 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 under 25 years of age
  • Get good grades i.e., “B” or 3.0 GPA
  • Attend a school at least 100 miles away from home (this is the student away at college discount)

Allstate also provides fantastic savings for safe drivers through its Safe Driving Bonus program.


Nationwide applies a discount to families with kids between 16 and 24. If your student gets excellent grades, 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” or 3.0 GPA 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 provides savings for families with students between 16 and 25 maintaining at least a B or 3.0 grade point average. You can get this discount everywhere except Hawaii and North Carolina. USAA says that families can save 3%. That’s the smallest savings available from this category of discounts. But USAA is already the least expensive insurance option. So, it’s hard to complain.


Farmers allows young drivers under the age of 25 in college or high school to receive a discount for good grades. You must provide proof of academic achievement to qualify. You’ll likely get anywhere from 10-15% knocked off your rates from the discount.


Travelers rewards families with full-time students younger than 25 with a discount when they get good grades. You must maintain at least a “B” average to qualify. Most premiums will see savings of 8% on average.

Liberty Mutual

Liberty Mutual offers savings for full-time students under 25 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 savings to families with school-aged drivers 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 to qualify.

Farm Bureau Financial Services

Farm Bureau lowers rates when a student driver between 16 and 25 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.

Good Student Discount by Company

Insurance CompanyQualifying AgesMax Savings
GEICO16 and 2415%
State FarmUnder 2525%
ProgressiveUnder 2310%
AllstateUnder 2520%
Nationwide16 to 2415%
USAA16 to 253%
FarmersUnder 2510-15%
TravelersUnder 258%
Liberty MutualUnder 2510%
American Family16 to 25Varies
Farm Bureau16 to 25Varies
Note: table data found on the above insurers’ websites.

The savings for student discounts vary from one insurer to another. That’s one reason we recommend requesting car insurance quotes from several companies. That’s the only way to ensure you qualify for this discount and wind up with rates you can afford.

Frequently Asked Questions

What is a good student discount?

The good student discount is offered by auto insurers to families of school-age drivers with excellent grades. Each provider has its own rules and qualifications. Refer to their websites for more information.

How much can you save with a good student discount?

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.

Which insurers offer discounts for good grades?

Every major car insurance company offers a good student discount based on school grades. It’s also likely that small or local insurers have some sort of financial reward 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.

How old do you have to be to qualify?

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.

How will your insurance company verify your GPA?

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.

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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