Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 24, 2020

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Things to Remember...

  • Although insurance providers consider teenagers to be high-risk drivers, teens who perform well in school can score a big discount on their car insurance premiums
  • Although there are plenty of safe and responsible teenage drivers, the reality is that teens aged 16 through 19 are more likely to be involved in a car accident than any other age group
  • If you’re a teen searching for car insurance, or a parent who’s helping them find coverage, it’s important to shop around and ask several providers what they do for good students

Everyone knows that getting good grades in school is a great way to lay the foundation for a promising future, but fewer people likely know it can also save teens money on their auto insurance.

Although insurance providers consider teenagers to be high-risk drivers and charge them more as a result, teens that perform well in school can score a big discount on their car insurance premiums.

Find affordable insurance for your teenager’s car now by typing your zip code into the FREE box above!

Auto Insurance Rates for Teenagers

Although there are plenty of safe and responsible teenage drivers, the reality is that teens aged 16 through 19 are more likely to be involved in a car accident than any other age group.

Although results may vary from year to year, according to the Insurance Institute for Highway Safety, teenage drivers are three times more likely to be involved in a car crash than older drivers.

This is despite the fact that teens typically drive less than drivers do from other age groups.

In addition, not only are teenage drivers statistically more likely to be involved in a car accident, thousands of teens are hurt in car crashes every year.

According to the Centers for Disease and Control and Prevention, in 2009, more than 350,000 people aged 15 through 19 were treated for injuries they incurred in a car crash.

Of course, not every teenage driver fits the stereotype of a careless motorist that never follows the rules of the road.

Although teenagers may have to pay more for car insurance than more experienced motorists do, by hitting the books hard and getting good grades, they can cut their insurance costs!

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Good Grades and Driving

Just because someone gets good grades doesn’t necessarily make them better behind the wheel, however, studies show that students who perform well in school are more likely to be safer drivers.

Insurance companies understand that students with good grades are probably excellent listeners, who make good decisions and possess a solid memory.

All of these characteristics will help an inexperienced driver if they’re driving down a busy road with fast-moving traffic.

On the other hand, a teenager who struggles in school may be someone who doesn’t pay attention or take the time to study and review the information they’ve been taught.

Someone who is easily distracted or can’t recall the rules of the road is more likely to get in a car accident.

If an insurance company believes you may be this kind of person, the more they’re going to charge you to insure your car.

Eligibility Requirements for a Good Student Discount

What determines whether a good student qualifies for a discount on their car insurance may vary, depending on the state they live in or what provider they’re dealing with.

Typically, discounts of this nature are available to students who are performing well in high school and college.

In addition, the student must be enrolled in school full time.

In terms of the grades, typically a student will need to have at least a B average overall, or 3.0 on the grade-point-scale, to be eligible for a discount.

Some insurance providers offer even larger discounts to students who have even better grades or are on the honor roll.

In addition, students who have performed extremely well on their SATs or other standardized tests like the ACT may also be eligible for a discount.

This way you may be able to save money on your car insurance even if you’re not an A or B student.

It’s important to remember that each provider may offer different discounts depending on a student’s grades and circumstances, so if you or your teen is a strong student, be sure to ask insurance providers about their discounts.

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Proving Your Grades

Most insurance companies will ask a teenager to verify their grades before they offer a discount on their car insurance.

Students that are homeschooled may have to provide proper documentation by scoring well on a standardized test.

Discounts for good grades are typically not automatically renewed, so in order to maintain the savings, students will have to keep verifying their grades as time progresses.

Just emailing an insurance company a student’s marks or telling them over the phone won’t do the trick.

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Getting the Discount

Once a teen has received good grades and shown them to an insurance company, it’s time to cash in on their hard work.

When you consider that the teenage driver on average pay the highest premiums for their auto insurance, any savings can really make a difference.

Depending on the company, and the marks a student earns, a teenager could save hundreds of dollars on their car insurance!

For example, some providers will offer students with a B average a discount of 10 to 15 percent, while teens who are on the dean’s list might save 20 percent.

Although it’s less common, a young academic star may even qualify for a 25 percent saving on their premiums depending on the provider. If a teen performs well in school for several years in a row, the savings could really add up.

Compare Providers

If you’re a teen searching for car insurance, or a parent that’s helping them find coverage, it’s important to shop around and ask several providers what they do for good students.

It may take a little longer to find out what kind of discounts each provider offers good students, but it will be well worth your time in the long run.

It’s also important to remember that although one company may offer attractive discounts, they could be charging you more overall than another competitor.

Some of the other things to consider when shopping for car insurance include:

  • How often and how far are you driving your car?
  • Should you purchase comprehensive and collision insurance for your vehicle as well?
  • How much coverage do you or your teen need?
  • What are the minimum requirements in your state?

While having good grades rewarded with a discount is clearly a great thing, there are many other factors to consider when buying insurance for a car.

The last thing any driver needs is to find out that they’re on the hook for thousands of dollars in damages due to a car accident.

The Insurance Information Institute is a great resource to learn more about car insurance and the industry itself.

Other Ways for Teens to Save

The good news for students with great marks, or any teen driver, is that there are several other ways to save on your car insurance premiums.

Depending on your circumstances and how long you’ve been driving, you could be in line for even more savings.

One of the best ways for a teen to keep their car insurance premiums in check is by driving safely, following the rules of the road and keeping a clean driving record.

If you cause a car accident or get one or two speeding tickets, the savings you may have received for good grades will quickly disappear.

The National Highway Traffic Administration offers plenty of tips and information on how teens can drive more safely.

In keeping with safety, insurance companies also offer lower rates for cars that are equipped with safety features, which reduce the chances of an accident and keep damages to a minimum.

Typically, providers also offer discounts to teens that have completed driving lessons, as companies are more certain that young drivers who have done so are probably better and safer drivers.

Another great way to keep your premiums low is to drive a less expensive car. Due to the price tag of luxury vehicles and sports cars, they cost more to repair, and they’re more likely to be stolen or broken into.

It’s easy to find affordable car insurance for you or your teenager when you click here to enter your zip code into our FREE quote tool!