Why does one's GPA have an effect on car insurance rates?

Answer 1

Your GPA doesn't really affect your insurance rates except that many insurance companies offer a discount for younger drivers who have at least a 3.0 or B average. It is not actually a part of rate but a discount off the rate if you qualify and are able to send in proof of such. This discount only effects drivers under 25 years old. Insurance companies have found that drivers with good grades are generally more responsible overall and have less claims. It's a fact that is not meant to be true for every single person and there are alwasy exceptions but insurance is based on groups and statistical facts on these groups.