Why Good Grades Matter to Your Auto Insurance Provider in 2026 (They Do Check!)

Curious why good grades matter to your auto insurance provider? Good grades show an insurer a teen is responsible, so the good student discount can lower their car insurance rates and encourage safe driving.

Get the best good student auto insurance discounts from top insurers like Country Financial, Allstate, and State Farm, which could save you up to 35%. Most companies require a 3.0 GPA or higher and proof of good grades.

Read on to learn more about auto insurance and grades. Need to find affordable teen auto insurance? Just enter your ZIP code into our free quote tool to begin today.

Why Auto Insurance Companies Care About Grades

Many providers offer good student discounts to lower their insurance rates for students with good grades in school.

Take a look at the saving percentage of good student discounts at popular auto insurance companies:

Good Student Auto Insurance Discount Savings by Provider

While teens generally present a greater risk than other drivers, not all teens present the same risk.

Parents and insurance companies alike want to motivate teens to excel, whether at school or on the road. A good student discount based on grades can be a powerful incentive.

Read More: Best Auto Insurance Discounts for Good Drivers

Having good goals at school can translate into other positive life goals, including safe driving, which is why companies with the best auto insurance for students offer a good student discount.

How to Qualify for a Good Student Insurance Discount 

Due the increased risk young drivers pose, insurance providers charge higher rates for policies for teen drivers. However, many companies help customers to reduce their rates by providing a good student discount.

The GPA is calculated based on a student’s letter grades, so for a GPA of 3.0 or higher, students would need to be getting all As and Bs on their report cards. An agent may not offer it up front but feel free to ask if it’s available and if your teen qualifies.

In these difficult economic times, parents may struggle to meet the rising cost of living, transportation, and education. Insurance companies that offer a car insurance discount for a student with a good GPA are helping parents meet these demands safely and successfully when adding a child to their auto insurance policy.

Read More: When should I add my child to my auto insurance?

Make sure you ask your agent about the availability of good student discounts to save on car insurance for high school students.

How Auto Insurance Companies Verify Grades

Do insurance companies verify grades? Most auto insurance companies offer a discount on car insurance for good grades but require proof of qualification. Insurance companies can only access public information that is available to the DMV, and grades aren’t part of that.

Auto insurance companies will request proof of good grades before offering an insurance discount for good grades and then again during each renewal period.

The necessary documentation for a good student discount may be provided by fax, email, or online portal, depending on the company you insure with. Even if you initially qualify for the car insurance GPA discount, since proof is also required before renewal, there are three scenarios that can take place:

• Grades Stay the Same or Go Up: Maintaining a good GPA for car insurance means that you’ll likely continue to qualify for the discount upon renewal.
• Grades Go Down: Most companies will withhold the discount if the student’s grades have gone down. Make sure to ask about the details of the discount when purchasing the policy.
• No Longer a Student: If the teen drops out of school or graduates, the good student discount will no longer apply. At this point, you’ll want to explore the best auto insurance discounts.

For example, Geico good student discount verification requires a copy of a student’s grade average before applying the discount. Now that you know why auto insurance companies verify grades, read on to learn more about the specifics of a good student discount.

Why Auto Insurance is More Expensive for Teen Drivers

According to recent studies by the Centers For Disease Control And Prevention, the ages of 16-19 present the highest risk for traffic accidents, and the figures are even higher for males. The annual cost of the results of such accidents was estimated at almost $5 billion. It’s no wonder auto insurance companies charge a higher premium for teen drivers (Read More: 6 Reasons Auto Insurance Costs More for Young Drivers).

Teen drivers have the least amount of driving experience compared to all other demographics of drivers. It makes sense that the premiums would be higher for inexperienced drivers, as they are prone to more mishaps when navigating the road.

Getting a Good Student Auto Insurance Discount With Good Grades

Remember to ask if the good student auto insurance discount is available and if your teen qualifies. Not all agents will mention this provision upfront, but they will check grades if you apply for a good student discount.

Exploring available good student driver discounts is just as important as shopping for good rates and coverage. Regardless of whether you qualify for a Nationwide good student discount, Progressive good student discount, or State Farm good student discount, bringing proof of your grades is necessary.

Want to find the best auto insurance for new drivers? Compare car insurance quotes and find the most affordable car insurance for students with good grades today by entering your ZIP code into our free quote tool below.