It is a challenge to find cheap student car insurance. Even a person who is not a student is already considered a high-risk driver if he is younger than twenty-five years old. Being a student with no steady income adds to that risk factor. Student drivers are almost always considered new drivers with minimum experience and do not have enough training on the road. These are actually factors that make student car insurance a bit more expensive than regular rates. However, insurers find that some students are worthy of discounts. Discounts apply when one undergraduate keeps on getting good grades. Insurance companies do this by showing appreciation for doing a good job to those who are still in school. Parents play an important role in explaining to their kids that the lower rates would eventually change once their grades start to fail or go down.
Discounts in student car insurance are available for those who maintain an average grade point equivalent of 3.0 or a B. The same holds true if he was listed as an honor roll of the previous semester or term in school. There are times that the same lower rate is offered to fresh graduates who are ready to enter the workforce and managed to maintain the required grade point average in their final year. Keeping good grades only shows that a person is highly responsible and capable of driving safely on the road; this means that they are perceived as having a low risk level.
To claim deductions in the rate of student car insurance, an agent or insurer will require proof showing that the GPA is indeed 3.0 or higher. A proof can either be the most recent report card or some other document issued by the school which reflects the grade. Again, a student must understand that rates are lowered because of the grades and is highly dependent on those values. Parents can encourage kids to maintain their excellent standings in school by teaching them that their actions will affect their financial capacity and freedom.
While it is true that maintaining high grades can save some bucks, the rate given is still relative to other factors. Saving more money and getting hefty discounts take several years of driving responsibly. A young driver must understand that being responsible on the road – following road rules, avoiding drunk driving, giving full attention on the road while behind the wheel – will ultimately score him added discounts. However, first, he has to make sure that his grades are worthy of attention because that is the beginning of a good relationship with the insurer.