Do car insurance companies check grades?

When you’re a struggling student, you have to answer to both your teachers and your parents. There’s nothing worse than digging yourself in a hole before grades come out and then trying to raise them in a matter of a few weeks.

With good midterm and finals grades and a lot of focus, it’s still possible to earn a passing grade if given the opportunity.

When you’re in high school and sometimes even college, you know that your parents are going to ask to see your grades from time to time. Your parents aren’t the only ones who care about your Grade Point Average.

Don’t be surprised if your insurance agent asks to see your grades too. Before you say no to the request, learn how providing a copy of your grades will save you money.

Are you a student looking to save on auto insurance? Enter your ZIP code above and compare at least three to four policies today to find the best rates for you!

Your Grades Can Save You Money

Earning good grades is about prestige for some. For the most driven and dedicated students, the idea of making the honor roll or Dean’s List is enough to keep their heads in the books. (For more information, read our “Car Insurance Discounts for Honor Roll“).

For others, it’s the incentive of getting a reward or a scholarship. Not only can you make money you don’t have to pay back, but you can also save money on your bills.

While most students who intend to go to college will work hard to qualify for academic scholarships, you shouldn’t overlook how getting good grades can impact your auto insurance premiums.

Pretty much all of the leading insurance companies, and even many of the smaller ones, offer policyholders discounts if they have a good student driver in the home. (For more information, read our “Do student drivers need car insurance?“)

Don’t miss out on the discount if you or someone in the home is eligible.

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What do grades have to do with auto insurance?

If you have an accident, you can easily understand why an insurance company might charge you more than another driver with the same type of car who has never been in an accident.

It’s not quite as easy to understand why your grades have anything to do with your driving, let alone how much you’ll pay for insurance.

Insurance premiums are strongly influenced by statistics and data. There’s a lot of data compiled by insurance actuaries and also by states when it comes to the following areas:

• demographics
• accidents
• factors that can impact a person’s driving abilities

According to the data that’s been compiled, there’s a correlation between a young driver’s grades and their choices behind the wheel.

There are a bunch of different variables that can be considered when trying to assess the relationship between grades and the risk of filing a claim. It’s not necessary that students with good grades have better driving skills.

Rather it’s students who are responsible in school make better choices and are likely to have less risky driving habits. Since responsible students are often responsible drivers, they deserve a reward.

Are drivers of all ages eligible for good student savings?

You don’t have to be a teenager or young adult to be in school. If you’re returning to school or getting an advanced degree, you could be in school in your 30s, 40s, and even 50s.

In fact, the average executive MBA student is 37 years old. All students might be studying for a certificate or a degree, but in the eyes of your insurance, not all students are the same.

Not all drivers expose companies to the same amount of risk. Technically, only the riskiest drivers are eligible for good student discounts.

That’s why only students who are 25 and younger will be eligible for the standard Good Student Discount.

If you’re over the age of 25, you will be eligible for savings, but they won’t be because of your grades.

Can you get a discount if you’re a part-time student?

The requirements for a Good Student Discount vary from provider to provider.

There are companies with stricter requirements than others so you’ll have to verify if you can enroll in school part-time and still receive the savings.

It’s common for a company to require you to be completing a minimum amount of credits before your transcript is accepted. Some carriers require six and others require nine to 12.

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What type of grades do you have to earn?

Eligibility requirements for Good Student Discounts are set by the provider. Some states dictate whether or not the discount must be offered, but the actual GPA that you have to earn is up to the insurer.

Some carriers require a 3.0 GPA, and others require a 3.5. If you aren’t in the same grading scale, the carrier will typically require that you have at least a B average.

What if you’re studying for a graduate degree?

Some specialty companies will offer graduate students savings, but that’s not an option with a standard insurer.

It’s most common for doctors, engineers, and other students who spend years in school to qualify for savings while they are in school for an extended period. (For more information, read our “Car Insurance for Engineers“).

You should ask your student affairs office if they recommend a specific carrier.

Are you required to show your agent your grades?

So, do insurance companies check grades every time and in every situation? Not necessarily.

You have to give your agent a transcript or a report card before any discounts can be applied. It’s a supporting document that underwriting needs to justify the savings.

While it’s not a required document to secure coverage, if you’re not willing to show your grades, you won’t receive the discount.

You must show your new grades every renewal.

Auto insurance companies don’t automatically check your grades if you say you’re a student. If you’re claiming to be a good student, the agent will ask you to demonstrate it in the form of an official school document. You may even be able to ask for a form that your school counselor can fill out.

If you are in college and have auto insurance, you can still shop for student discounts. Keep in mind that if your car is older than 10 years old, it may be difficult to find a student discount. Shop around. Not all companies offer the same level of discounts based on age or driving record (or lack thereof).

To get auto insurance quotes and compare student discounts, use an instant quoting tool online and start shopping.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include:

• “What is the best coverage plan for me/my family/my situation?”
• “What are the minimum coverage requirements in my state and what form of coverage do you recommend?”
• “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and
• “What is the average rate of insurance quotes you guys offer?”

Take stock of the answers to each of these questions, before making any big insurance decisions. Then use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

Start comparison shopping today by using our FREE online quote tool! Enter your ZIP code below to find the best rates!