Question of the Day: What GPA is required to earn a Good Student Discount on an auto insurance policy?
Discounts vary by insurer:
- Why do you think that most automobile insurers offer discounts based on good grades?
- What else might you want to know about a high school student before providing them with an auto insurance policy?
- Why do you think that the insurers seem to offer such varying good student discounts?
Behind the numbers (Value Penguin):
As you may have heard from the commercials, being a good student could save you and your parents a good deal on car insurance. Aptly titled the "Good Student Discount", it is offered by many major auto insurance carriers and has a variety of ways to qualify.
Who is considered a good student?
A “good student” may seem like a subjective term, but each company that offers the discount has the same requirements.
- Age: 16-25
- Full Time Enrolled High School, College or Home Schooling
- B or 3.0 GPA or Top 20% in Your Class
- Rank top 20% on either ACT, SAT, PSAT, TAP, PACT, California Achievement Test, Iowa Test of Basic Skills
Check out the NGPF lesson on Car Insurance
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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