How much do school grades affect car insurance rates?

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. (For more information, read our “Compare Drivers With a College Degree Car Insurance Rates“).

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.

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.

Case Studies: Impact of School Grades on Car Insurance Rates

Case Study 1: Good Grades Discount

John is a high school student with excellent grades, maintaining an A average throughout his academic career. His insurance provider offers a “Good Student” discount, which rewards students with good grades. As a result, John qualifies for this discount and receives a reduction in his car insurance premium, recognizing his responsible behavior and dedication to his studies.

Case Study 2: Average Grades With No Impact

Sarah is a college student who maintains average grades, with a mix of B’s and C’s. While some insurance providers offer discounts for good grades, Sarah’s insurer does not consider school grades when calculating car insurance rates. Therefore, her grades have no direct impact on her insurance premiums.

Case Study 3: Poor Grades Leading to Higher Rates

Mike is a high school student who consistently receives poor grades and fails to meet the academic standards set by his insurance provider. Unfortunately, his insurer has a policy that considers school grades as a risk factor for young drivers. As a result, Mike’s car insurance rates are higher compared to his peers with better academic performance.

Case Study 4: Insurance Provider Policies and Discounts

Samantha is a college student with a solid academic record, but her insurance provider does not offer a specific discount for good grades. While her insurer acknowledges the importance of good grades, they have different criteria for determining insurance rates. Therefore, Samantha’s car insurance rates remain unaffected by her school grades.