How GPA Affects Auto Insurance
How GPA Affects Auto Insurance
How GPA Affects Auto InsuranceHaving a high school driver added onto your auto insurance policy can be pricy. However, the cost of insuring your young driver can be reduced by applying a good student discount. Many California auto insurance companies offer a good student discount. If your child maintains a high grade point average, the savings from such discounts could be hundreds of dollars a year.
When a young driver is added to an auto insurance policy the rates increase significantly. The lack of driving experience associated with adolescent drivers is the main cause of this increase. Many times, the vehicle that the child is driving will cost more that both of the parents' vehicles combined. Depending on what type of vehicle is being added and the coverage on this vehicle, the rate could even be higher that of the previous policy covering both parents.
Many auto insurance companies will offer a discount to student drivers if they maintain a grade point average of 3.0 or better. These students will need to be full time students, attending high school or an accredited university. There are no limits to the number of drivers that can qualify to receive the good student discount. Parents with multiple children in school could actually save several hundred dollars per year on their auto insurance, if their children qualify for the discount.
With the average savings of 20% per child and an average premium of $1000 per child, a parent with 3 youthful drivers would save $600 per year by getting the good student discount applied to each child. To find out if your auto insurance company offers good student discounts or if your student driver qualifies for such discounts, call your insurance agent today. Lowering your monthly premium by taking advantage of all the discounts available to you is a great way to manage the added costs of having a young driver.