With several paths to earning a student discount, Allstate is a good option for teen drivers regardless of their report card. And the more drivers who sign up for Allstate’s Drivewise safe-driving app, the greater the discount will be, making it a good option for families with multiple young drivers.
Save With Allstate Student Discounts
Allstate offers three routes to earning its student discount, meaning teens may not need good grades to earn a lower rate. Drivers qualify if they are unmarried, a full-time high school or college student under 25 years old, and fulfill just one of the following requirements:
- Hold a GPA of 2.7 or higher, or at least a B- average
- Complete the TeenSMART driver education program
- Attend school at least 100 miles away from where the car is garaged (and are younger than 21)
The TeenSMART driving program includes videos, simulations, and parent-teen activities that teach teens how to drive safely and avoid hazards on the road. Allstate customers receive a $50 discount on the program, resulting in a final cost of $69.95 per driver. Teens who qualify for the student discount can save around 20 percent on their premium.
Allstate does not offer the TeenSMART discount in the following states: Hawaii, Louisiana, Massachusetts, Minnesota, New Jersey, New Mexico, North Carolina, and Vermont.
Accident Forgiveness and Accident-Free Discount
Allstate offers an accident forgiveness coverage add-on, which ensures premiums won’t increase even if a teen driver is at fault in an accident. Unlike other providers, Allstate doesn’t require a waiting period before you can add accident forgiveness to your policy.
Additionally, for every six months without an accident, Allstate customers receive a safe driving bonus of up to 5 percent on their auto insurance bill.
Pay-Per-Mile and Usage-Based Options
The U.S. Department of Transportation reports that teens drive an average of about 7,600 miles per year. That’s roughly half as many miles as the average American adult drives each year.2
For teens who drive less than 8,000 miles per year, a pay-per-mile insurance plan is a good option to explore. Allstate is one of the few major insurers to offer such a plan, called Milewise.
With Allstate’s Milewise plan, drivers pay a daily rate for insurance plus a per-mile rate. For example, let’s say you drive 10 miles per day on average:
|$.08 x 10 miles = $.80
|Total cost per day
|Total cost per month
Allstate uses a device installed in your vehicle to monitor your mileage, allowing you to keep track of your mileage and expenses through the Allstate app. If your family has multiple vehicles under the same policy, not all of them need to be enrolled in Milewise. You can individually decide whether each vehicle is classified as per mile or under a traditional unlimited mileage policy.
Milewise is available in Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin, and Washington D.C.
Read our Drivewise review
to learn more about Allstate’s usage-based program and the generous teen discount offerings.
For teens and families with higher mileage, Allstate’s Drivewise option may make more sense. Drivewise is an optional policy add-on, which measures behaviors like speeding, hard braking, and nighttime driving, and offers discounts for safe driving.