Teens carry some of the most expensive car insurance because as a group they have the highest accident rate compared to older drivers. Lack of experience behind the wheel and a tendency to be easily distracted puts teenagers at a disadvantage when insurance companies are determining their risk of filing a claim. Most pa car insurance companies and companies in other states offer a discount that can cut as much as 15% off a teenager's premium if the teen qualifies. Academic discounts for teens with good grades are practically an industry standard, and these discounts have been helping good students afford to keep driving for decades.
Making the Grade
The necessary grade point average to qualify for most car insurance academic discounts is a B average or better. Since some schools use different grading techniques, car insurance companies will usually allow students to qualify for the discount if they can provide proof of earning a spot on the dean's list or honor roll. Most insurance companies offer this discount to drivers who are in high school or in college up to age 25, so the companies are relatively flexible about the type of grades they will accept. In general, though, the grades need to be slightly above average in order to qualify.
Why Good Students Get Better Rates
Grades might not seem to have anything to do with car insurance, but they are a great way to judge a teenager's character. If a student is willing to follow the rules and do the work to keep their grades above average, that student is probably also willing to follow the rules of the road and avoid reckless driving behavior. Insurance companies realize that the average statistics that cause teen premiums to be so high do not apply to every teen driver. Good grades set these kids apart from the average statistics and imply that they are safer than the average teen driver.
Details can Vary
Every insurance company has a different set of rules regarding the academic discount program. Some companies only offer discounts to high school students, while others offer the discount to anyone under the age of 25. With some companies, the insurance discount is only available to the teen if the insurance policy is held in the teen's name. Other companies will offer a discount to the teen's parent if the teen's policy is tied into the parent's policy. Discount amounts can vary from insurance company to insurance company as well. Check with your agent about the details for your specific policy.
Necessary Proof
Since this discount is based on a teen's school performance, it is necessary for the teen to provide the insurance company with proof that the grades are in the right range as long as the teen is in school. Every term or semester, the teen will need to send a copy of their latest grade report to their insurance agent so that the discounts will remain in effect. If a student drops below the required range for a period and the discount drops off, the student can usually begin to receive the discount once again as soon as the grades are back in the required range.