Hitting the books can make it easier for you to hit the road. Many insurance companies offer discounts to students who make the grade.
For teenagers, getting a driver’s license and their own car is a big step toward independence. However, many teenagers do not get to take this important step, as insurance rates for new drivers are costly. According to the Insurance Information Institute, adding a teenage driver to an existing policy can increase rates from 50 to 100 percent. This increased premium is often far too much for families, and the rates are nearly impossible for students who must pay for auto insurance on their own. However, students may still be able to realize their independence with the help of academic discounts.
Insuring teenagers is so costly because of the great risk that these new drivers pose to insurance companies. As teenagers are less responsible than adults and have higher accident rates than other age groups, insurance companies are forced to consider the significant amount of money a teenager may cost in filed claims when determining the appropriate rates. However, many insurance companies offer a good student discount to students who demonstrate their responsibility by maintaining good grades. Good students can receive rates that are up to 15 percent lower than other teenage drivers. These lowered rates can be the deciding factor when families are thinking of adding teenagers to their auto insurance policy.
While each insurance company has different eligibility requirements for good student discounts, most companies limit the student’s age of participation to 16-24, require that the student retain full-time status, and require proof that the student has been academically successful. Many insurance companies require students to have a 3.0 grade point average the semester before a policy is initiated or have earned a place on the Honor Roll or Dean’s List. Other companies determine a student’s eligibility based on standardized test scores, such as the SAT or PSAT.
Good student discounts can help ease the financial burden of insuring teenage drivers. Talk to a licensed Florida auto insurance agent to discuss good student discount options that may be available to your teenage children. Doing so will bring them one step closer to independence.