Good Student Discount

An automobile insurance discount offered to young drivers who get good grades in school.

The thinking here is that younger drivers who are responsible enough to get good grades...are also responsible enough to be good drivers. This discount can be in the neighborhood of 20% or more, and since insurance premiums for young drivers tend to be a whole bunch higher than they are for other age groups, this can be a big savings.

Insurance companies differ on how they handle good student discounts. Sometimes it’s based on a high GPA; sometimes it’s based on making the dean’s list or honor roll. Sometimes these benefits are only available until a person turns 25, even if they're a full-time student with a 4.0 GPA. And sometimes, if the insurance policy already has other discounts in play (multiple-car policies, for example), or policies that bundle home and auto insurance, the good student discount isn’t applicable. But hey, for a 20% discount, it’s worth reading up on what your insurance company offers, and possibly putting in a little extra study time before that Physics exam.