CAR INSURANCE DEALS FOR STUDENTS
It is not a secret that first time, teenage drivers pay higher for car insurance. This is because historically, young drivers pose a higher risk to insurance companies. And because these companies are designed to minimize financial risks, it only makes sense to make their premium rates higher for young drivers.
The good thing is, insurance companies recognize this fact and know that this is not the only way to minimize risk and that not all young drivers are as reckless as we think. Because of that, they have created insurance discounts that are especially made for young, student drivers.
Good Student Discount
You may have heard from insurance commercials how being a good student can actually save you a great deal in car insurance.
The Good Student discount is an additional discount offered for hard working students who strive to get good grades. Insurance companies have determined that good students are good drivers as well, therefore pose a lower risk on the company.
So how could one qualify for the good student discount? Qualifications differ based on the insurance company, but they have the same requirements:
- Licensed driver age 16 to 25
- Must have a 3.0 or higher grade point average or Top 20% in Your Class
- Enrolled full-time at a high school or college/university.
- Student homeschooled can qualify with proper documentation
- Discount can be added and removed based on future grades
When you purchase your car insurance, and ask for this discount, companies usually require proof that you really have good grades. You have to provide proof of academic achievement such as your current report card or a letter signed by your school administrator. If the student is homeschooled, he needs to be in the top 20% of standardized test’s national performance. And the results from a standardized test, such as the PSAT, SAT or ACT, must be submitted as proof. You can speak to your insurance provider for other proof they may require for you to qualify.
If you don’t currently qualify for the discount, you can still turn things around. You just have to improve your grades, and once you’ve reached 3.0 or higher, you can submit a copy of your card to your insurance company and revisit the good student discount when you renew your policy.
So how much can you really save from this discount? It still depends on which provider you’ll choose to purchase your car insurance from. Percentage of savings always differ from one company to another, but the good student discount ranks high among other top money savers in car insurance. So you may want to consider this whether you’re a young student driver who just got his first car, or a parent who’s considering getting a car insurance for their kid.
Resident Student Discount
If you’re a student who’s going to attend school away from home, the Resident Student Discount is specifically made for you. This discount is meant for students like you who do not need regular access to a car but is most likely to use one when visiting home or when you need to borrow it from time to time. Requirements and verification depends on the insurance provider.
Always check with your insurance provider to find out what kind of discounts can apply to you, how much you can save and what requirements you may need to qualify.