Young Drivers’ Insurance Rates and Good Grades

Auto insurance companies consider many factors when determining a customer’s rates and premiums, particularly the likelihood that a certain driver will have an accident. In order to determine risk, insurance companies categorize drivers by descriptions such as age. It is true that young drivers have the highest occurrence of auto accidents, which their insurance rates reflect.

In many cases, these higher rates can be difficult for families to handle. In response, many companies have created ways for teens to earn lower insurance costs, such as taking defense driving courses and making good grades. Most companies consider a B average to be “good,” and some will offer a discount of up to 25% for a good grade point average.

Discounts for Good Grades

Discounts for good grades may seem unfair to those students with lower than a B average, but they have no need to worry. An insurance company won’t increase costs for students with low or failing grades. Overall, this discount policy is actually beneficial for many reasons, including:

• Gives motivation for students to be interested in their academic performance

• Provides a chance for young people to demonstrate responsibility

• Institutes reward system for students who already have good grades

• Gives teens a goal to work toward for students below the GPA requirement

It is important to talk to your auto insurance agent about potential discounts for the young driver in your family.

Contact Us

The Illinois car insurance agents at Insure on the Spot are dedicated to finding the best Illinois auto insurance quote for you and your family. This can be especially difficult when insuring teen drivers, so get started today by calling us at 1-888-972-SAVE.