Students and teenagers pay high rates for car insurance. The reason being that they are young and inexperienced at driving, which makes them high risk. However, there are options that students can look for to reduce the high insurance costs. Most insurance companies provide various car insurance discounts tailored to students. One of the most popular discounts is the “good student” discount.
Why is Student Car Insurance More Expensive?
Not all young people are inexperienced drivers; some are excellent drivers. However, the insurance company can’t assess their driving skills; they use equations that illustrate the average risk of a particular group. Some of the details in the equation include how long the person held the insurance policy and how many times they made a claim. Since young people are new to driving and they do not have a solid driving record, the equation calculates their lack of experience as high risk. Fortunately, the insurance company is aware that the calculations are not perfect. This is the reason why the company offers discounts to individuals who prove to be less risky than their peers.
Good Student Car Insurance Discount
This is a car insurance discount offered to young drivers and teenagers who earn a good grade in school. The good student discount believes that young drivers who are responsible for their studies are more likely to be reliable and excellent drivers. As a result, they qualify to get a low insurance premium since they are less likely to file an insurance claim with the insurance company. Since young drivers are charged the highest insurance premiums due to inexperience driving, prone to traffic violations and accidents. A good student discount will offer the motivation to perform well in school and save money.
Understanding the Good Student Discount
Each insurance company sets its guidelines for a specific percentage discount, and they are free to choose whether to offer a good student discount or not. One insurance company may offer a 25% discount on a premium to full-time students with great performance, set an average score or higher, up to the age of 25. Another insurance company will offer 15% to unmarried students with at least a high-grade point average in college. An insurance company will provide a good student discount after seeing proof of excellent performance in school as a condition when applying for the discount. For home-schooled students with no traditional report cards, the insurance company will consider SAT scores that are top 20% of the standard average.
Special Option
A good student discount can be the best way for young people to get lower premiums; the other way is through safe driving. By avoiding traffic violations and accidents means avoiding higher premiums that are a result of these events. Another way is to be added to a parent’s insurance plans instead of applying to an individual policy. This can save money through the multi-car discount. The smart way to save money on car insurance is to compare the rates from different insurance companies.
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