Question of the Day: What GPA is required to earn a Good Student Discount on an auto insurance policy?
Answer: 3.0
Discounts vary by insurer:
Questions:
- 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?
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
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
- Single
- 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
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Check out the NGPF lesson on Car Insurance
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About the Author
Tim Ranzetta
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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