Michigan is one of the most expensive states for car insurance. The Insurance Information Institute cited an average cost of about $1,470 per year in 2019, making it the second most expensive state for car insurance, while Insurify data indicates that Michiganders currently pay a staggering average monthly premium of $515. Compare that to the national average premium, which is about $234 per month.
Many drivers across the state, from Flint to Grand Rapids, struggle to find affordable premiums. And young drivers can expect to pay even more since insurance companies in Michigan determine their premiums in part based on age and driving experience. However, Michigan’s new auto insurance law precludes car insurance companies from setting rates based on non-driving factors like credit score, sex, and marital status.
That said, there are plenty of ways for young Michigan drivers to save on auto insurance, including insurance discounts for good students and for drivers who take a training course. One of the easiest ways to save is to use Insurify to compare auto insurance quotes from multiple insurance providers in one place. Some car insurance companies offer cheaper rates to young drivers in Michigan, so getting customized quotes is essential to getting a low rate.
Car Insurance Quotes for Young Drivers in Michigan
In Michigan, insurers consider many individual factors when determining your car insurance rates. Some of these factors, like your coverage limits and deductible amount, are within your control. While you can do your best to keep a clean driving record, there’s nothing you can do about your age or years of driving experience, which will impact the cost of a car insurance policy in Michigan.
Age and the Cost of Car Insurance
There’s a reason that average rates for Michigan auto insurance are higher for younger policyholders. Auto insurance companies recognize that younger age groups present a greater risk to insure, so they charge higher rates.
>>> MORE: Car Insurance For 18-Year-Olds
Average premiums for teen drivers are particularly steep. That’s because drivers ages 16–19 are almost three times as likely as older drivers to be involved in a fatal crash, according to the CDC. And the crash risk is especially high for teens in the first months after they receive a driver’s license. Drivers who are 16 years old are 1.5 times more likely to be in an accident than older teen drivers.
There are several factors that make younger drivers a bigger risk:
- Inexperience: Young drivers aren’t accustomed to identifying dangers on the road.
- Seat Belt Use: Young drivers have lower rates of seat belt usage.
- Distractions: 39 percent of teen drivers surveyed reported texting or emailing while driving in the last month.
- Speeding: A higher percentage of teens involved in crashes were speeding when compared to other age groups.
- Alcohol: Nearly a quarter of teens who died in an accident in 2018 had been drinking, and even at low blood alcohol levels, teens under the influence are at a much greater risk of crashing than adults.
Driving Experience and the Cost of Car Insurance
Inexperience is one reason young drivers are a greater risk to insure, and it applies to new drivers as well. If you don’t get your driver’s license until age 24, your car insurance rates at age 25 will be higher than for other drivers with more experience on the road.
Does car insurance in Michigan cost more for young drivers?
In most cases, the answer is yes. Michigan drivers under the age of 25 pay a whopping $596 per month for car insurance on average, which is about 15 percent more than the overall average premium. However, several other factors also influence your premium. If you’re 24 and have a clean driving record, you might pay less than an older driver with a DUI and speeding tickets on their record.
Coverage for Young Drivers in Michigan
Michigan’s insurance laws changed in 2020. While unlimited personal injury protection used to be required, you can now choose your coverage level. Your options for PIP coverage are:
- $50,000 (if you have Medicaid or other health insurance that will cover injuries from auto accidents)
- Opt out if you have Medicare or other health insurance that covers auto accident injuries with less than a $6,000 deductible
In addition to PIP, Michigan requires the following state minimum coverages:
- $1 million per accident in property protection insurance (PPI)
- $50,000 per person and $100,000 per accident in residual bodily injury liability protection
- $10,000 per accident in property damage liability coverage
These adjusted car insurance requirements are saving Michigan drivers money. Young drivers should consider putting the savings toward the purchase of full-coverage insurance, which will provide financial protection in almost any situation. Recommended coverages for your auto insurance policy include:
- Collision insurance
- Comprehensive insurance
- Underinsured and uninsured motorist coverage
Young drivers in Michigan should also consider purchasing more than the minimum liability insurance limits required under state law, as these may not be sufficient to protect your finances in the event of an accident.
What are the cheapest car insurance companies in Michigan for young drivers?
On average across policyholders, car insurance providers in Michigan offered the following premiums for drivers under 25, according to proprietary Insurify data.
|Insurance Provider||Monthly Avg Cost for Drivers under 25|
We chose the three best cheap car insurance companies in Michigan for drivers under 25 based on auto insurance rates, available discounts, financial strength, and customer satisfaction ratings. Drivers from Detroit to Lansing can find a variety of coverage options from these providers.
On top of Progressive’s great rates, the company has several discounts that will appeal to young drivers. There’s a teen driver discount for adding a teen to an existing policy, a good student discount for students who maintain a B average or better, and a distant student discount for drivers studying at least 100 miles away from their cars. Young drivers can also sign up for the Snapshot safe driving program—the average policyholder saves $146 with this program.
Coverage options include liability coverage, collision and comprehensive coverage, uninsured/underinsured motorist coverage, and roadside assistance. Progressive has an A+ (Superior) financial strength rating from A.M. Best but was ranked below-average in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study.
The average premium for Safeco policyholders under 25 in Michigan is $301 per month, and there are several safe driving rewards that good drivers can take advantage of. For example, Safeco offers accident forgiveness, which means that after a set number of years with no at-fault accidents, your first accident on the policy will be waived. You can also get cash back for staying claims-free, and your deductible will decrease at every renewal as long as you haven’t filed a claim during that period.
Safeco offers standard coverages to pay for medical expenses and property damage as well as new vehicle replacement and rental reimbursement coverage. The company has an A (Excellent) financial strength rating from A.M. Best but was ranked slightly below-average in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study.
3. Liberty Mutual
Liberty Mutual offers many discounts, and some may be especially attractive to young drivers. There’s a good student discount, a student-away-at-school discount, an accident-free discount, and a violation-free discount. You can also save up to 30 percent by enrolling in the RightTrack program, which monitors your driving behavior.
In addition to standard coverages, Liberty Mutual offers both gap insurance and new car replacement coverage along with rental car reimbursement and roadside assistance. There’s even a special policy for teachers. Liberty Mutual has an A (Excellent) financial strength rating from A.M. Best but was ranked slightly below-average in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study.
How Young Drivers Can Slash Their Car Insurance Premiums
It’s possible to get affordable car insurance even as a young driver. The best car insurance companies in Michigan offer young drivers several ways to save on car insurance coverage, including:
- Student discounts: This is typically available to students who get good grades or are studying away at college.
- Safe driving discounts: Many insurers offer an app or telematics device to measure your driving behavior and reward you with discounts.
- Driver training discounts: Some car insurance companies, such as GEICO, offer discounts to drivers who take an approved course.
- Military discounts: If you served in the military, most car insurance providers will give you a discount, and you can find especially low rates from USAA.
- Multi-policy discounts: Bundling your auto insurance with your renters or homeowners policy can save you a decent chunk of change.
- Comparison shopping: Insurify users save an average of $585 on their annual premium by comparing rates from multiple insurance companies.
Find the Cheapest Michigan Car Insurance for Young Drivers with Insurify
Some insurers offer more affordable premiums to young drivers, but each company will weigh your individual information differently. With Insurify, you can compare premiums from both local providers and major insurers like Allstate and Nationwide. You’ll save a ton of time because you’ll only need to fill out one form, and you could potentially save hundreds of dollars as well.
Once you provide Insurify with some info about your vehicle and driving history, you’ll be able to view customized quotes from several providers in one place. From there, you can toggle between coverage limits and deductible amounts until you find an affordable policy that also meets your coverage needs.
Michigan Car Insurance for Young Drivers: Quick Questions
Do young drivers in Michigan pay more for car insurance than older drivers?
On average, young drivers under 25 in Michigan spend about 15 percent more on car insurance than the average Michigan driver. Young drivers will likely see their car insurance rates decrease with age, especially those who maintain a clean driving record.
What’s the average cost of car insurance for drivers under 25 in Michigan?
According to Insurify data, the average monthly premium for Michigan drivers under 25 is $596. But your premium may vary from that, depending on your driving record and other factors.
How can young Michigan drivers find the cheapest car insurance?
The easiest way for young Michigan drivers to find cheap car insurance is to use Insurify to compare customized quotes. Insurify’s artificial intelligence technology makes it fast and painless to find the best deal in car insurance.