Student Car Insurance Discounts

Student Car Insurance Discounts
Many young people are burdened with expensive auto insurance rates that they cannot afford. It is not uncommon for teenagers to pay double and even triple what drivers over 25 pay for similar coverage. Some young people have even forgone buying a car. They have started using ride-sharing services like Uber and Lyft to get around. There are some things drivers under 25 can do to get cheaper auto insurance, like getting good grades. In fact, student car insurance discounts are available with most insurers. Let’s look a little deeper into this excellent discount so you can see if you qualify or not. Get your free rate check-up online at Ocean Harbor Insurance today.

Why Insurers Offer Good Student Discounts

Auto insurance companies don’t promote this offer as “good grade discounts” but that’s really what it is. Students who earn good grades are eligible for cheaper car insurance. It’s important to note that not all insurers offer this type of discount. That’s why you need to check around and compare multiple rates at sites like Ocean Harbor Insurance. These discounts typically range from between 5% to 10%. You might not think that is much, but it could save you $150 or more per year and it’s free. So if you’re a student that has high grades and need car insurance, you should definitely look into it. These discounts are eligible to current high school and college students.

Insurers offer lower automobile insurance premiums to students with good grades because they are more likely to be safe and responsible drivers. From the perspective of the insurance provider, someone who is disciplined and works hard in school tends to also be safer and more careful behind the wheel. Also, decades of data compiled by insurers backs up this point. Auto carriers can provide this small discount knowing they will get a return on their investment, as those with higher grades also tend to pay their bills on time.

In addition, there is further evidence that young people who earn high grades tend to not engage in high-risk activities like drinking and driving, doing drugs behind the wheel, or joy riding at 100 miles per hour. This more conservative behavior translates into fewer accidents and fewer claims. These lower risk motorists also tend to get married more frequently and earn higher incomes. Insurance companies can then market an array of products to them, like homeowners, life, and health insurance.

On the contrary, drivers who drop out of school are more likely to drive intoxicated, take more risks and not pay their bills. Higher risk drivers, of course, get into more accidents and file more claims, which is why they pay more for premiums. If all of this sounds like discrimination, then it is. Insurers are able to look at the data for each demographic and apply premiums based on the risk associated with that driver.

Another reason car insurers offer good-student discounts is to generate social PR and motivate students. Think about it. If an auto insurance company promotes a 10% discount to students earning a B or high GPA, that creates an instant incentive for the student. It’s also a great way to attract future business. The cost of this type of promotion is paid off with long term customers, so it is totally worth it. Some people are emotionally attached to their insurance carrier and stick with them for life. Getting customers at a young age is a smart investment for auto insurance companies to make.

Good Student Car Insurance Discount Requirements

Each company has their own specific rules for this discount. In general, it is offered to active high school and college students under 25 years of age, who maintain a GPA of 3.0 or higher. A student simply needs to offer a recent copy of his or her transcript and send it over to the company as proof. Some car insurance companies offer this discount for up to a year after college graduation. Always do your homework and compare several offers before buying a policy.

Find the Best Discounts Online

Young people do everything online so why not buy your insurance direct? At sites like Ocean Harbor Insurance Company, you can compare up to 10 rates in about 5 minutes. Direct rates can save online shoppers hundreds per year and it’s so convenient. You can pay your bill, change your policy and even file a claim, all online. Get your student car insurance discount online and save more.