Auto Insurance Rate Discount for Students

Auto Insurance Rate Discount for Students

There are lots of reasons to do well in school, or college. It keeps your parents happy, probably gives you bargaining power on a raise in allowance, and of course increases your chances of getting a scholarship, and eventually a better job; lots of reasons. But can better grades save money on your car insurance? Are they a way of helping teenagers find cheaper auto insurance?

A growing trend among auto insurance companies is to offer reduced rates to "good students". This definition varies slightly from company to company, and state to state, but the general concept is the same. By some standards, for example, a GPA of 3.5 or higher qualifies you as a good student. Similarly, being selected to the Dean's list or Honor Roll can meet the criteria for some companies.

The idea behind this is that research has shown better students to be better, safer drivers. This can be linked to responsibility. Students who are responsible enough to get all their work done, in a timely manner, while maintain the level of quality necessary to get consistently good grades are usually similarly responsible with their driving. This applies on, and off, the road as such students are also more likely to take better care of themselves i.e. less likely to get drunk at a party and subsequently drive home in their inebriated state. This minimizes the risk of accidents due to irresponsible behaviour.

Additionally, the discipline, mentioned above, required to get excellent grades ties in directly to self-control - resisting the urges to slack off and go off and have fun, excessively. This self-control helps as a driver as it reduces the likelihood of the student speeding, or making rash decisions that could result in an accident.

One other reason is that "good students", to put it simply, drive less. They spend less time on the road, socializing etc. (not saying that they don't have social lives but they don't overdo it) and the simple equation is, less driving equals less risk of an accident.

Whether all these apply to an individual student, or not, they can still take advantage of the statistics and save money on premiums with companies that make this offer. A little more effort in the classroom can save a lot of money, on car insurance, leaving more available to cover the other ever-increasing expenses of students. With rising costs for tuition, and boarding, not to mention the effect of the recent economic failure on student budgets, why not do a little more work to save a bit of cash? Of course, getting good grades in school is always good but now auto insurance companies are giving students extra incentive to do so.

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