Young drivers face some of the highest car insurance rates in Ontario, but students who maintain good grades can qualify for significant savings. The good student discount rewards academic achievement with lower premiums, making insurance more affordable for students and their families.
What Is the Good Student Discount?
The good student discount is a premium reduction offered by most auto insurers to full-time students who maintain strong academic standing. The rationale is that students who are responsible enough to achieve good grades are also likely to be responsible drivers.
Studies have shown a correlation between academic performance and driving behaviour, with good students statistically having fewer accidents and violations than their peers.
Typical Savings
The good student discount typically ranges from 5% to 15% off your premium, depending on the insurer. For young drivers who often pay significantly higher rates, this discount can translate to substantial savings:
| Annual Premium | 5% Discount | 10% Discount | 15% Discount |
|---|---|---|---|
| $3,000 | $150 | $300 | $450 |
| $4,000 | $200 | $400 | $600 |
| $5,000 | $250 | $500 | $750 |
| $6,000 | $300 | $600 | $900 |
Who Qualifies for the Good Student Discount?
Age Requirements
The good student discount is typically available to drivers:
- Under 25 years of age
- Some insurers extend eligibility to age 29 for graduate students
- The driver must be a listed driver on the policy (either as primary policyholder or added to a family policy)
Enrollment Requirements
You must be enrolled as a full-time student at:
- A secondary school (high school)
- A college or CEGEP
- A university (undergraduate or graduate programs)
- An accredited trade or vocational school
Part-time students may qualify with some insurers, but full-time enrollment is typically required.
Academic Requirements
Grade requirements vary by insurer but generally include:
- Minimum GPA: Usually B average (3.0 GPA) or higher
- Percentage Grade: Typically 70% or 80% average or above
- Academic Standing: Some accept Dean's List or Honour Roll status
How to Apply for the Good Student Discount
Step 1: Contact Your Insurance Company
Call your insurer or log into your online account to inquire about the good student discount. Ask about:
- Specific grade requirements
- Age eligibility limits
- What documentation they accept
- How often proof must be provided
Step 2: Gather Your Documentation
You'll need to provide proof of your academic standing. Accepted documents typically include:
- Official Transcript: Most insurers accept official or unofficial transcripts showing your GPA or grades
- Report Card: For high school students, a recent report card is usually sufficient
- Dean's List Letter: A letter confirming your academic standing
- Enrollment Verification: Proof that you're a full-time student
Step 3: Submit and Verify
Send your documentation to your insurer. They'll verify your eligibility and apply the discount to your policy. Keep copies of everything you submit.
Step 4: Maintain and Renew
Most insurers require you to provide updated documentation periodically:
- Annually at policy renewal
- Each semester or school year
- Whenever requested by the insurer
Set reminders to submit updated grades to maintain your discount.
What If You're on a Parent's Policy?
The good student discount typically applies whether you:
- Have your own insurance policy
- Are listed on a parent's or guardian's policy
If you're on a family policy, the parent or primary policyholder may need to request the discount on your behalf. Provide them with your academic documentation to share with the insurer.
Students Living Away from Home
If you're attending school away from home, you may still qualify for the good student discount. Important considerations include:
- Primary Residence: Your insurance is typically based on where the vehicle is primarily kept
- School Address: If you take your car to school, you may need to update your address, which could affect your rate
- Occasional Use: If you only use the car when visiting home, you may be able to reduce your coverage or qualify for lower rates
Discuss your specific situation with your insurer to ensure proper coverage and maximum savings.
Combining with Other Discounts
The good student discount can typically be combined with other available discounts, including:
- Driver Training Discount: For completing an approved driver education course
- Winter Tire Discount: Ontario's mandatory 5% discount
- Multi-Vehicle Discount: If multiple cars are on the family policy
- Usage-Based Insurance: Telematics programs that reward safe driving
Stacking multiple discounts can significantly reduce the typically high premiums young drivers face.
What Happens When You Graduate?
The good student discount ends when you:
- Graduate from your program
- Drop below full-time enrollment
- Exceed the age limit (usually 25)
- Fail to maintain the required grades
After graduation, focus on maintaining a clean driving record to continue building discounts through claims-free history. Other discounts like multi-policy bundling, professional association rates, and usage-based insurance can help offset the loss of the student discount.
Tips for Young Drivers
- Apply early: Don't wait until renewal; apply as soon as you have qualifying grades
- Keep records: Save all report cards and transcripts
- Compare insurers: Different companies offer different discount amounts
- Maintain good grades: The savings make academic effort even more rewarding
- Drive safely: One accident can cost more than years of good student savings
Get Your Good Student Discount
If you're a student maintaining good grades, make sure you're not missing out on this valuable discount. Contact your insurer today or shop for a new policy that offers the best good student discount.
Ready to see how much you could save? Get your free Ontario car insurance quote and discover all the discounts available to you.