Guides
How the good student discount works
Who qualifies for the good student discount, the grade and age rules major insurers use, what proof to send, and related student discounts.
The good student discount lowers the premium for young drivers who do well in school, usually full-time high school or college students under 25 with at least a B average (a 3.0 GPA), a class rank in the top 20%, or a place on the honor roll or dean's list. Insurers offer it because, in their data, students with good grades file fewer claims. It is one of the few ways to take a meaningful bite out of the cost of insuring a teen.
Typical requirements
Rules differ by insurer and state, but most programs share these conditions:
- Age. Usually under 25. Some insurers set a lower cap.
- Enrollment. Full-time student in high school, college or a similar program.
- Grades. One of the following, depending on the insurer: a B average or 3.0 GPA, a top-20% class ranking, or honor roll or dean's list status. If your school does not give letter grades, ask what else the insurer accepts.
- Proof. A report card, transcript or a form signed by a school official, renewed periodically.
- Driver status. The student must be a listed driver on the policy.
What major insurers say
These details come from the insurers' own discount pages as of October 2026. Discount amounts are maximums or starting points, not guarantees.
| Insurer | Grade requirement | Age | Amount stated |
|---|---|---|---|
| State Farm | 3.0 GPA, top 20% of class, or dean's list or honor roll | Full-time high school or college student; savings may last until 25 | Up to 25% |
| Progressive | B average or better | Student drivers | Starts at 5% |
| Farmers Insurance | 3.0 GPA, dean's list or honor roll, or top 20% of class | Student drivers | Not stated |
Because each insurer weighs a teen driver differently to begin with, the company with the largest advertised discount is not necessarily the cheapest once the teen is added. Compare total premiums.
How much it saves
The discount usually applies to the part of the premium attributable to the student driver, and often only to certain coverages, not to the whole household policy.
A worked example
These numbers are hypothetical. Adding a 16-year-old raises a family's premium by $2,400 a year. The insurer's good student discount is 15% on the teen's share.
| Annual cost | |
|---|---|
| Added premium for the teen | $2,400 |
| Good student discount, 15% | −$360 |
| Teen's cost after discount | $2,040 |
Over the years until the teen ages out or finishes school, the discount can be worth more than nearly any other single step except choosing the right car and keeping a clean record. It also stacks with other discounts the household already gets.
How to apply and keep it
- Ask when you add the teen. Insurers rarely apply the discount automatically.
- Send proof promptly: the most recent report card or transcript showing the GPA, or a school form confirming class rank or honor roll.
- Calendar the renewal. Many insurers ask for updated proof each policy term or school year.
- Report changes. If grades drop below the threshold, enrollment drops to part time, or the student graduates, the discount typically ends at the next renewal. Not reporting can cause problems if the insurer later checks.
- Ask about homeschool and alternative programs. If your student is homeschooled or in a pass/fail program, ask the insurer what evidence it will accept, such as standardized test results, before assuming the discount is off the table.
Related student discounts
The good student discount often sits alongside other savings for young drivers:
- Distant student or student away at school. For students who attend school far from home and leave the car behind. Progressive's version applies to students 22 and under attending school more than 100 miles away without a car; State Farm's applies to drivers under 25 at school away from home who use the car only on breaks; Farmers' applies to students under 23 at school 100 or more miles away without a vehicle. See car insurance for college students.
- Driver training. State Farm offers a discount when all drivers under 21 complete an approved driver education course.
- Young driver programs. Some insurers run training or telematics programs for new drivers, such as State Farm's Steer Clear program for drivers under 25.
- Family discounts. Farmers lists a Youthful Driver discount for drivers under 25 who live at home and are the child or grandchild of a Farmers policyholder of at least 12 months.
Grades are one lever among several
The good student discount works best combined with other choices that affect a teen's price:
- The car. A modest sedan with strong safety ratings usually costs far less to insure than a sports car or a new SUV. See how the car you drive affects your insurance rate.
- Coverage on older cars. Dropping collision on a low-value car the teen drives can save more than any discount.
- A clean record. One at-fault crash or speeding ticket can erase years of good-student savings.
- Policy structure. Keeping the teen on a parent's policy is usually cheaper than a separate policy; see should a teen have a separate car insurance policy?.
For the full picture of costs and choices, start with adding a teen driver to your car insurance.
Key takeaways
- Most insurers require a full-time student under 25 with a B average, a top-20% rank or honor roll status.
- As of October 2026, State Farm advertises up to 25% and Progressive starting at 5%; amounts vary by state.
- The discount applies to the student's share of the premium, not the whole policy, and must be renewed with proof.
- Distant student, driver training and young-driver programs can stack with it.
- Compare total premiums with the teen added, not advertised discount percentages.