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When your children are old enough to learn to drive, both you and the kids get a little bit more freedom. You get to relinquish your chauffeuring duties, and your kids can drive themselves to school and other activities.
Liberation comes with a hefty price tag, however. Adding a student driver to your car insurance could add thousands of dollars a year in costs to your policy, according to data from Forbes Advisor. Fortunately, many insurance companies offer discounts for students and young drivers.
Good Grades Mean Car Insurance Discounts
When your teen gets good grades, it might just help you save on your car insurance. Many insurance companies offer special discounts for student drivers who bring home high grades or academic accolades.
Requirements vary, but your student may receive a discount if they’re under a certain age and reach a particular level of educational merit. State Farm, for example, offers up to a 25% discount for young drivers between ages 16 and 25 who achieve a B average or a 3.0 GPA, or who rank at the top 20% of their class. The discount also applies to students who are homeschooled and meet specific test scores.
Some students may qualify for academic discounts that don’t require a specific grade level. In addition to discounts for achieving a B average or a 3.0 GPA, or ranking in the top 20% of their class, Geico offers other ways high-achievers can save on car insurance:
- Achieving an academic accolade such as inclusion on the Dean’s List, Honor Roll or any comparable list.
- Ranking in the top 20% of national standardized tests (within the past year)—qualifying standardized tests include the Iowa Test of Basic Skills, California Achievement Test (TAP), ACT, PSAT, PACT, or SAT-I.
While discounts vary by insurer and state, it’s possible to save 10% to 25% on your policy.
Enroll in a Driver’s Education Course
Inexperience is one of the top factors that put younger drivers at risk. To encourage awareness and the improvement of driving skills, insurers like Travelers and Geico offer discounts to young drivers that complete eligible driver’s education courses.
Other insurers, such as State Farm, offer programs to help young drivers sharpen their driving skills. For example, the Steer Clear program from State Farm gives drivers under the age of 25 with a clean driving record for the past three years the opportunity to save. You must complete five training modules and five hours of driving in at least 10 trips within six months. Discount percentages and eligibility may vary by state.
If your student is considering enrolling in a driving course, check with your agent to see if he or she qualifies for a savings opportunity.
Give Your Student Driver Distance
It can be tough for parents to send their kids off to school away from home for the first time. But it also could save you some money on your car insurance policy via distant student discounts. This means that if your young driver is away at school and not using a vehicle, you may be eligible for savings.
Progressive, for example, offers a discount to full-time students no older than 22 who are at school more than 100 miles away from home. If the student takes a car to school, they may no longer qualify. Travelers offers a “student away at school” discount for those under age 25, go to school 100 miles away from home and only use the car on breaks or holidays.
These sorts of distance discounts may expire when your student returns from school or exceeds the age requirement.
Get Involved with Fraternities and Sororities
Some insurance companies value student involvement in campus Greek or honors organizations. Just by joining a fraternity or sorority, your college student driver might help you save some coin on your car insurance payments.
Nationwide offers car insurance discounts specific to members of Sigma Nu Fraternity, for instance. Meanwhile, Geico provides discounts to members involved in a wide variety of sororities, fraternities or other honor societies. Check with your insurer to see if your student’s involvement in one of these organizations qualifies for a discount.
Other Ways Young Drivers Can Save on Car Insurance
If your young driver doesn’t qualify for any discounts, there are still ways you can save on coverage. First, it’s important to compare your options by shopping around for the best cheap car insurance for teens. You can receive quotes online or with an independent agent to find the cheapest rate available.
When comparing options, ask about other discounts you may qualify for. Many issuers offer a range of discounts for young drivers. Some discounts include:
- Multi-policy discounts for when you buy more than one insurance policy from a given insurer.
- Paying-in-full discounts for paying your entire premium upfront for the year.
- Going-paperless discounts for when you choose to forgo paper statements for electronic ones.
- Vehicle equipment discounts for those who drive cars with safety features such as airbags or anti-lock brakes.
- Military discounts for military members who are on active duty or retired, or members of the National Guard or Reserves.