Students who earn good grades pay less for insurance, and now getting a good-student discount is even easier.
Insurers charge good students less because studies show that good grades equate with fewer collisions.
Up to now, once a student sent PEMCO a copy of his or her report card each year when the policy renewed, we applied a discount of up to 20%. If we didn’t receive the grades in time, the student could see a spike in premium – understandably frustrating.
But as of Sept. 1, students need to verify their eligibility only once to receive our Good Student Discount. At renewal, we’ll simply assume students are maintaining good grades.
Trust is key in any relationship, and we trust our customers to do the right thing, just as they trust us to help them when they need it most.
Drivers age 16 through 24 can qualify for the Good Student Discount, which can shave up to 20% off liability, collision, comprehensive, and personal-injury-protection premiums for students who average a “B,” make the dean’s list, or rank in the top 20% of their class.
Older students also qualify for another discount – our Distant Student Discount – if they attend college at least 75 miles from home and don’t have a car. That would apply, for example, to students who live in Seattle and attend Western Washington in Bellingham or Central Washington in Ellensburg, or farther.
Portland students who attend Oregon State in Corvallis would qualify, as would Bend students who attend Oregon in Eugene.
Even students living in Spokane can earn the Distant Student Discount – just barely – if they attend Washington State in Pullman, which is exactly 77 miles away.
This blog entry differs from others I’ve written because it sounds a little sales-ish. But there’s a big consumer-education payoff here, whether I’m writing as a PEMCO advocate or for another insurer. The payoff: Everyone wins when students earn good grades.
Parents who pay their kids’ car-insurance premium win when good grades equal less cost. And how about all the students who pay for their own insurance? They definitely win by saving money.
PEMCO wins because good grades = safer drivers = fewer accidents = lower business costs. And our customers benefit from lower business costs because it helps keep premiums down for our owners. And who are they? Our customers. PEMCO is a mutual insurer, meaning we’re owned by our policyholders, not stockholders on Wall Street.
See how that works? When students earn good grades, it’s not a cliché. Everyone wins.