Good student discount

A good student discount lowers premiums for young drivers who do well in school. Age and driving experience are among the strongest rating factors, so young drivers are among the most expensive to insure, and insurers say students with good grades tend to file fewer claims than their peers.

Requirements are similar across companies. Typically the driver must be a full-time high school or college student under a certain age, often 25, with at least a B average or 3.0 GPA, a place in the top 20% of the class, a spot on the honor roll or dean's list, or in some cases a qualifying standardized test score. You prove it with a report card, transcript or school letter, often each term or year. State Farm, for example, says its discount can reach 25% and may last until age 25, while Progressive's starts at 5%.

The discount usually applies to the student's share of the premium, and for families adding a teen household member to a policy it can be among the largest savings available. It can combine with other student-related discounts, such as a distant student discount for a college student living away from home without a car, or a driver training discount. Ask each insurer how it verifies grades and when the discount ends. See how the good student discount works.