Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Apr 13, 2022

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Key takeaways...

  • Teens and young drivers under the age of 25 are typically considered a high-risk to auto insurance companies
  • Although if a young/teen driver gets good grades, it can positively affect their car insurance rates since they are seen to be more responsible
  • There are other car insurance discounts that teen/young drivers and their parents can look into that they might be eligible for

Young drivers and their families are always on the lookout for ways to lower the high rate of car insurance. An honor roll discount, also called the good student car insurance discount, is one of the best ways for drivers under 25 to find lower rates.

Remember that honor roll discounts require a lot of hard work as a student. It is not a discount for which you can qualify and then forget about it. The good student discount is one that must always be in the back of your mind.

The young driver is not the only one who is invested in lower car insurance rates. Many young drivers are still on their parents’ policy.

Just simply having a teen driver in the house can increase everyone’s car insurance rates. Parents can also benefit from good student discounts if the young driver in question is on their car insurance policy.

If you’re looking to save on auto insurance and still have good coverage, enter your ZIP code above and compare at least three to four policies today!

Young Driver Statistics

Young drivers have statistics against them when it comes to car insurance rates. Car insurance underwriters care about a driver’s risk of having a claim in the future, so those who are more likely to be in an accident will pay for it with higher rates.

Young drivers have the highest risk of any age group for being in an accident.

According to statistics from the National Highway Traffic Safety Administration, teen drivers from ages 15 to 20 have the highest fatality rates from traffic accidents of any other age group.

In 2006, more than 5,000 teens died in traffic accidents, and young drivers from ages 21 to 24 were not far behind.

All other age groups had only half as many fatalities, at most. While those fatality rates are falling, no one wants to see any teen fatalities from driving accidents.

Car accidents that involve fatalities are the most costly, both in the price of the damages and the loss of life. In terms of risk, car insurance underwriters view the high costs of young drivers with trepidation. Young drivers will have high rates to offset such high risk.

Families aren’t concerned about high car insurance rates only; the staggering statistics keep many parents on edge while their new drivers are on the road.

Thankfully, those factors that help lower car insurance rates will also focus on making a young driver a safer, more responsible driver.

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How Good Grades Affect Risk

You might wonder what the honor roll and good grades have to do with car insurance at all. There is a correlation, but it is one that is connected by behavioral statistics.

Similar to how credit history is used to help calculate risk and insurance rates, grades are also used to assess a driver’s likelihood of causing an accident.

Car insurance underwriters don’t have crystal balls, so they must rely on past behaviors and statistical information to help assign drivers to a risk category.

Credit is used in this way because insurers claim that there is a relationship between poor financial decision-making and lousy driving behaviors.

Young drivers don’t have much of a driving or even a credit history to go on. Not all young drivers are bad drivers who are destined to be auto accident statistics. Yet car insurance providers need a way to determine which young drivers are safer than others.

Good grades take patience, attention to detail, and careful planning to achieve. In short, those who get good grades are more likely to be responsible, which is a trait highly prized in young drivers.

Those young drivers who get good grades, such as those on the honor roll, are more likely to be safer drivers who strive to avoid accidents.

Discount Amounts

Discounts for young drivers from good grades are varied, depending upon the car insurance provider. Some providers offer a single generic good student discount, while others break the discount into one for high school students and one for college students.

Car insurance providers advertise honor roll or good student discounts that range from 10 percent, 15 percent, and 20 percent, to even 25 percent off of rates.

Good driver discounts are deducted off of the cost of liability coverage, though that is not always the case. A discount off your entire premium will be worth much more than a discount off only one portion of your coverage.

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Requirements to Get the Discount

Requirements will also vary from insurance provider to insurance provider, but there are a few common points. First, good grades are the most obvious requirement, though the way that insurance companies define good grades will all be different.

Some insurers define good grades as being good enough to be on the honor roll or dean’s list, while other insurance companies define good grades as a “B” average or better or being in a top percentage of your class.

No matter how your car insurer defines good grades, you will have to send them proof every quarter to keep the discount, according to the industry experts at the National Association of Insurance Commissioners.

Some providers will want to see a report card every quarter; others will accept an email or a fax of grades, and still, others will want an official piece of correspondence from a college, university, or school.

Many colleges and universities have online request forms for sending proof of grades to an insurance provider.

Other requirements might be that you are a full-time student, that you are under the age of 25, that your college or school is accredited, or that you are single. Requirements will vary, but there will be a few beyond just being a student.

Research the details so that you don’t miss any crucial necessities.

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Other Discounts for Young Drivers


Honor roll student discounts are not the only discounts available for young drivers. While all young drivers should undoubtedly focus on being safe drivers, there are further discounts that are tailor-made just for drivers under 25.

Many insurance providers offer discounts for safe driving courses or defensive driving classes. Some car insurance providers even offer classes for young drivers to complete.

The more experience young drivers get behind the wheel combined with more information about safe driving, the more likely those young drivers are to avoid accidents.

The Rocky Mountain Insurance Information Association maintains that this driving course discount can be as high as 10 percent.

Such classes don’t just add up to more savings, however. They also make the roads safer for young drivers and all other drivers on the road!

Additionally, many car insurance providers are using GPS-based technology to monitor driving behaviors, rather than just relying on statistics and statistical behaviors.

Essentially, a device is plugged into a vehicle’s computer system. It records driving data such as speed, mileage, location, and the time of day that driving is done, to name a few figures.

The data is transmitted back to the insurance company, where it is analyzed for risky driving behaviors. Those drivers who are shown by the data to have low-risk behaviors are rewarded with discounts and lower rates for coverage.

Parents can also use such technology to monitor their teen’s driving behaviors, according to the Insurance Information Institute. Parents can be alerted to:

  • Their teen driver’s speed
  • The locations traveled to
  • The length of time driven

Such data is more akin to spy gadgets to help a parent keep teens honest than just a device for saving on car insurance!

This technology is probably the best breakthrough in car insurance underwriting since the good student discount in terms of lowering young driver insurance.

Using such technology allows young drivers to prove that they are safe drivers in a way that they never could before.

Comparing Rates

Discounts are not the only way for young drivers to make a difference in their auto insurance rates.

The one thing that all drivers can utilize to find lower car insurance rates with hardly any other work is to shop around and compare rates from many different auto insurance providers.

Getting quotes from many different providers will allow you to see the array of quotes available.

Rates vary more between different car insurance providers than most people would believe. It is possible to find rates that are hundreds of dollars less than another provider’s rates.

Compare quotes for the same amount of coverage so that your rates can be compared equally.

Remember to check off any discounts that are available so that your rate will be as low as possible. Similarly, consider future discounts, such as those that your teen might be eligible for in a few years.

Many GPS tracking discounts take at least a month of recording driving behaviors for discounts to be enacted.

Combining good student discounts such as an honor roll discount with the comparison of car insurance coverage quotes will allow any young driver and their family to get the best rates for coverage possible.

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?”

Before making any big insurance decisions, 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!

Looking to save on auto insurance? Enter your ZIP code above and start comparison shopping today!