How Much Is Car Insurance for an 18-Year-Old in Michigan?
The average monthly cost of car insurance for an 18-year-old Michigan driver is $276, but costs depend on driving record, coverage level, and more.
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Written byJamie Johnson
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Edited byKatie Powers
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Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Table of contents
In Michigan, the average cost of car insurance for an 18-year-old driver is $217 per month for liability coverage and $336 for full-coverage insurance. This is higher than the national average of $191 per month for liability coverage and $340 for full coverage.
Ultimately, insurance companies consider a variety of factors when determining your exact rate, so it’s always a good idea to compare quotes from multiple insurers.
Here’s what you should know about finding insurance in Michigan, including average costs for teen drivers and ways to save on coverage.
Quick Facts
Auto-Owners has the cheapest coverage for 18-year-old Michigan drivers, on average.
For full-coverage insurance, Michigan parents with a teen driver pay $599 per month, while a teen driver with a separate policy pays an average of $372. Adding a teen to an existing policy typically costs less per person than a teen purchasing a separate policy.
Michigan is a no-fault insurance state with high minimum coverage requirements, which increases average car insurance costs.
Cost of insurance for 18-year-olds in Michigan
Certain insurance companies may offer better rates to teen drivers in Michigan than others. If you’re an 18-year-old driver looking to purchase your own auto insurance policy, compare average quotes from some of the cheapest Michigan insurers below.
The below rates are estimated rates current as of: Thursday, December 4 at 11:00 AM PST.
Insurance Company | Average Monthly Quote: Full Coverage | Average Monthly Quote: Liability Only |
|---|---|---|
| USAA | $194 | $121 |
| Auto-Owners | $207 | $129 |
| Chubb | $240 | $149 |
| Progressive | $293 | $211 |
| Safeco | $366 | $210 |
| Liberty Mutual | $384 | $259 |
| GEICO | $401 | $304 |
| Nationwide | $415 | $259 |
| State Farm | $419 | $259 |
| National General | $442 | $214 |
| Bristol West | $449 | $224 |
| Direct Auto | $492 | $257 |
| Travelers | $518 | $322 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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Cost of adding a teen to a parent’s policy vs. their own policy
Your teen driver must have an auto insurance policy to drive legally. But given the high average insurance rates for teens, many parents wonder whether they should add a teen driver to their policy, buy them a separate policy, or have their teen purchase a policy.
Teen drivers who have a separate policy can have a couple of benefits. Having a policy allows them to establish their own insurance history. And if your 18-year-old lives away from home, it may be easier to let them manage their own policy.
But it’s usually more cost-effective to add a teen driver to an existing policy than for the teen to purchase a separate policy. Purchasing a liability-only policy for two parents and a separate policy for a teen driver costs $341 per month. For comparison, purchasing one policy with two parents and a teen driver costs $296 per month — about $45 less per month, or $540 less annually.
Compare average monthly insurance costs for U.S. parents and teens below.
Drivers | Liability Only | Full Coverage |
|---|---|---|
| Two parents + a teen driver | $296 | $599 |
| Two parents | $157 | $316 |
| Teen driver on their own policy | $184 | $372 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Factors affecting insurance rates for 18-year-olds in Michigan
Several factors determine the rates 18-year-olds pay for car insurance in Michigan. Here’s an overview of each factor and how it raises or lowers your auto insurance rates:
Age and gender
In general, younger drivers pay higher rates for car insurance due to their lack of experience behind the wheel. As you age, your rates typically decrease. But gender also plays a role, since women have statistically fewer driving-related incidents than men. Men in every age group tend to pay more for car insurance than women, on average.[1]
Driving experience
Insurance companies view experienced drivers as less risky than brand-new drivers because newer drivers are more likely to have an accident. So, an 18-year-old driver with two years of experience would likely pay lower car insurance rates than a 16-year-old with a new license.[2]
Vehicle type
Insurers also consider the make, model, and vehicle type when evaluating your car insurance costs. The type of car you drive can affect the repair costs, safety features, and theft rates. Choosing a car with certain safety features could help you save on car insurance, while driving a car with high theft rates could cause your car insurance premiums to increase.
Geographic location
Insurance companies look at your ZIP code to assess any potential risks you face based on your location. For example, if you live in a densely populated urban area, you’ll probably pay more for car insurance than someone in a rural area.
Driving record
Once you have more driving experience, insurance companies evaluate your driving record to see what kind of risk you pose. People with a history of traffic tickets, at-fault accidents, and DUIs pay more for car insurance than people with a clean driving record.
Coverage type
Your coverage levels also influence your car insurance rates. Drivers who purchase basic liability insurance will pay a lower monthly premium than drivers who purchase full-coverage car insurance. Michigan has higher car insurance requirements than many other states, and all drivers must purchase personal injury protection in addition to liability coverage. PIP benefits drivers if they incur an accident-related injury and can’t work.[3]
Discounts and bundles
One of the best ways to save money on car insurance is to take advantage of discounts. For example, most insurers offer a discount for bundling multiple policies, such as auto, home, and life insurance.
Comparing teen driver rates in Michigan with other age groups
Teenage drivers pay higher car insurance rates because they’re more likely to have a car accident than other age groups. With age and a longer history of driving, drivers tend to have a lower risk of car accidents.
As you can see from the table below, car insurance rates begin to decrease once drivers enter their 20s and decrease steadily over time. Compare average monthly quotes for Michigan drivers by age.
Average Monthly Quotes by Age Group
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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How to reduce insurance costs for 18-year-olds
An 18-year-old driver will likely pay higher rates for auto insurance, but you can still find ways to save on coverage. Here are some tips for finding the best car insurance for your 18-year-old driver:
Look into good student discounts. Most car insurance companies offer good student discounts to drivers younger than 25 who maintain good grades in school.
Take a defensive driving course. Taking a state-certified defensive driving course can also help teenagers earn a discount on their car insurance policy.
Choose a higher deductible. Increasing your deductible from $200 to $500 could help you save on car insurance costs.
Choose the right car. Choosing a moderately priced vehicle with safety features will not only keep your teen safer on the road but could also help lower their car insurance costs.
Bundle policies. If your teen has their own vehicle, you could earn a multi-vehicle discount with your insurance company. And you’ll likely pay less by adding an 18-year-old driver to your insurance policy as opposed to purchasing them their own policy.[4]
Cost of insurance for an 18-year-old in Michigan FAQs
All Michigan drivers must purchase liability and personal injury coverage. Here’s some additional information about insuring an 18-year-old Michigan driver.
What is the cheapest insurance for an 18-year-old in Michigan?
Auto-Owners is the cheapest insurer for 18-year-old drivers in Michigan, with an average monthly rate of $89 for liability coverage and $136 for full coverage. But every policy has certain policy limits and exclusions, so it’s important to understand your coverage details and not base your decision on price alone.
Why is car insurance so expensive for an 18-year-old?
Car insurance is more expensive for an 18-year-old because insurers see them as high risk. Teen drivers are more likely to file auto accident claims, and motor vehicle deaths contribute to one-third of all deaths for people between the ages of 16 and 20.
Can a minor get their own car insurance in Michigan?
Teens typically can’t purchase their own auto insurance policy until they turn 18. In Michigan, the age of majority is 18. This is the age at which people have the rights and responsibilities of adults.
Are there discounts available for 18-year-old drivers in Michigan to lower their insurance costs?
Many insurance companies offer discounts to help teen drivers save on car insurance. For example, you may qualify for a good student, multi-vehicle, or driver’s education discount. The exact discounts available will vary depending on your insurer, so it pays to shop around and compare your options.
Does the type of car an 18-year-old drives affect the insurance cost in Michigan?
Yes. The type of vehicle you drive can raise or lower your car insurance costs. For example, driving a car with certain safety features can lower your insurance premiums, while driving a sports car is likely to increase them.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- Michigan Legislature. "The Insurance Code of 1956."
- Michigan Department of Insurance and Financial Services. "Purchasing Auto Insurance FAQ."
- Insurance Information Institute. "Nine ways to lower your auto insurance costs."
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Jamie Johnson
Jamie Johnson is a Kansas City-based personal finance writer whose work has been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance. For the past six years, she's dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
Jamie has been a contributor at Insurify since October 2022.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in