You knew this day would come eventually: your child has just passed their driver’s test. You now have an additional licensed driver in your household. What do you do? Good thing there’s a good student auto discount available.
The first thing you need to do is call your independent insurance agent. If your child is planning to use your car to go to a friend’s house, to the mall, to school, or anywhere else, then they need to be covered under insurance. In fact, it’s illegal not to have auto insurance.
Insurance companies base their rates on several different factors, such as gender, state of residence, the type of vehicle you drive, and, of course, your age. Did you know that teen drivers between the ages of 16 and 19 are three times more likely to have a car accident than drivers between the ages of 65 and 69? Well, your insurance company does, and they take that into consideration when determining your insurance rates, especially now that you have a teen driver in your household.
Now that you are aware of the potential rate increases to your family auto policy, rest assured that there are several methods to chip away at your monthly premium. One of the key ways to receive a discount to your auto insurance is by encouraging your teenager to be a good student. Students can play an important role in bringing their insurance costs down by qualifying for auto discounts of up to 10% (or better) off their portion of the family’s auto insurance plan. Think of it as a monetary reward to your teenager and to your family, just for working hard in school.
There is a reason why insurance companies encourage teenage drivers to be good students. There is a definite correlation between studying hard and driving well. Insurance companies equate good grades to responsibility and being a lower risk on the road.
With most companies, the discount is awarded on a single-term (or semester) basis, with the option to re-qualify at the time of policy renewal. Eligibility for the discount is established by each company, but is usually tied to a 3.0 grade point average. Your insurance company will have several other requirements as well. The student must be under the age of 25 and have full-time student status at a high school or university. If your child had a semester with grades below a 3.0 or B average, then they always have the opportunity to improve the next term and gain back the student driver discount when the policy is up for renewal.
You should know that it is up to you to provide proof of your student’s good grades in a timely matter. Proof can come in the form of a copy of their grade report or a letter signed by a school official. Students who do not provide these reports will have their discounts removed, normally without a formal notice of withdrawal.
Some insurance companies also offer discounts to students who take a driver safety course. This might be in the form of classroom time, watching an educational video, reading a book on driver safety, or taking a test.
There are other opportunities to reduce your monthly premiums as well:
- Increase your deductible to prevent a rate increase from filing multiple small claims
- Provide your child with a safe and reliable vehicle
- Bundle your home and auto insurance policies to receive a multi-policy discount
- Notify your insurance agent if your child plans to attend a college more than 100 miles from home and does not plan to take the car with him or her
An independent insurance agent can help you make sure you have the correct forms to notify the insurance company of your child’s grades. Having the correct grade information can make all the difference in how much you pay for insurance.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
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