Why Does One's GPA Have an Effect on Car Insurance Rates?

Features

• GPA-based discounts are offered on the premise that responsible students are most likely to be responsible drivers. In exchange for submitting proof of good grades, a discount is offered. Insurers require that the student regularly submit proof of their grades. This is usually established by submitting a report card for high school students or a transcript for college students.
  
  

Benefits

• A high GPA is an easy way to offset the higher cost of insurance for young drivers. In addition, these good student programs are not only offered to high school and undergraduate students. Where regulations allow, GPA-based discounts are offered until age 25, which extends coverage to graduate and professional students after their graduation from undergrad.
  
  

Size

• Insurance companies do not disclose underwriting standards or the amount of the discounts. However, the amount of your discount is proportional to your insurance premium, so the more you spend, the more you will save via a student discount. Additional money can be saved if you are eligible for more discounts and your insurance company allows discounts to be combined.
  
  

Considerations

• GPA-based discount programs end upon college graduation or at age 25, whichever comes first, but that does not mean your savings have to end. The insurance agent may forget to remove the student discount, especially if you are not regularly required to prove your GPA or enrollment in school. In addition, recent college graduates may be able to add more discounts, such as those for safe drivers.
  
  

Warning

• The grade point average necessary for most GPA discounts is 3.0, equivalent to a B average. However, the requirements vary between insurance companies, so contact your agent and confirm the requirements for student discount eligibility with your insurer.