The Idea Behind Good Student Discounts

good-student-discountsA very popular and well appreciated discount is the ‘Good-Student Discount’. These discounts generally apply to high school and college students ranking in the top 20% of their class. These students will have a grade point average of 3.0 or higher. These insurance discounts are highly sought after as they can supply between a five and twenty-five percent discount on the student driver’s insurance.

Depending on the insurer, there are variations on the parameters of the discount plans. Nearly every state implemented a ‘graduated licensing’ program that goes through three stages; a learner’s stage (no driving without a licensed driver present), an intermediate phase of approximately three months (no driving at night without a license driver, etc.) and phase three is a requirement of the former two phases being the driver must be free of certain violations during the former phases.

The premise behind the ‘good student discounts’ is the belief that good students are showing more responsibility by their actions, making them a better insurance risk than non-qualifying students. This discount is also targeted at giving students a reason to do well in school and parents a reason to monitor their children’s progress better. This coupled with the stage system where parents are encouraged to work with their children, teach them the law and how to handle a vehicle in real life situations is geared to save the auto insurance industry innumerable amounts of money on claims, which they pass a portion of the savings to the qualifying clients.

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