Do school grades affect car insurance?

Student driver insurance can be expensive, but do grades affect insurance? With good grades in school and a bit of searching, you may be able to get a few car insurance discounts.

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UPDATED: Jun 16, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: Jun 16, 2022Fact Checked

Here's what you need to know...

  • Insurance rates for young drivers are typically higher due to their higher risk levels
  • Some insurance companies offer discounts in return for good grades
  • Additional discounts may be available as well

Even if you can’t wait to get behind the wheel of your first car, you may be concerned about paying for student car insurance. You know the quotes will be high, and you may wonder what you can do to keep those prices in check. In this case, you may wonder, “Do grades affect car insurance?”

In many cases, good performance at school can have a positive effect on your rates. Read on to learn more.

Do grades affect insurance rates for young drivers?

Many insurance companies will give younger drivers a break if they do well with their studies. While the approach may not be uniform across the industry, it’s worth checking with your insurance company and any companies you’re comparing to see what policies offer good-grade discounts. If you do have good grades, an insurance discount can reduce your annual costs and make driving a lot more affordable.

A good student discount is typically available to students with a certain grade point average. Nationwide car insurance discounts, for instance, include a student discount for drivers and teenagers between the ages of 16 and 24. They need to be full-time high school or college students and maintain a minimum grade point average of B or higher to qualify.

To get the discount with that company, students need to send proof of their academic achievement, such as their current report card or a form signed by a school administrator.

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Why is insurance more expensive for younger drivers?

Some people think it’s unfair to penalize young drivers across the board with higher rates. Unfortunately, the insurance companies are in the business of managing risk and point to the fact that younger drivers are statistically more likely to make a claim. In fact, the risk of a car crash is higher among teen drivers than it is for any other age group.

Do grades affect insurance discounts for students?

Certain risk assessments imply that students who get better grades in school will file fewer claims or not get as many tickets. So, if you qualify, your insurer may apply a discount to your base rate as determined by other factors (such as ZIP code or vehicle).

Talk to an insurance company and give a representative details of your achievements. If you’re an honor roll member, this may be enough to trigger a discount, or you may be able to submit a letter from your principal or administrator that could serve as proof of your work in the classroom.

What if you study at home?

If your parents homeschool you, you may not have standard proof of your achievements, and you would not be eligible to appear on the honor roll. Still, if you take a PSAT, SAT, ACT, or similar test that the state recognizes, you may be eligible for a good student discount. 

Nationwide stipulates that the student must be in the top 20% of that test’s national performance. These rules will vary by insurance company, though, so you should talk with a representative for further information.

What about other student discounts?

You may be able to get lower prices car insurance for students if you get the driver’s education car insurance discount or enroll in a defensive driving class. The specific policies depend on the insurer, so it pays to shop around.

You may also be able to get a discount if you attend a college that’s a long way from home. In this case, you’re unlikely to drive your vehicle while away but may want access to it during the holidays. Ask your insurance company if it offers a car insurance discount for students away at school. You will need to provide proof of attendance at that college but may be able to get a discount in return.

Do good grades lower car insurance rates?

Many companies offer discounts to younger drivers who have good grades. To qualify, you need to provide evidence of your grades or accomplishments. 

You may also be able to take advantage of other discounts that would lower your rates. Each insurance company may have a different approach, so it pays to shop around before you decide.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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