Cheap Car Insurance for Teen Drivers in Michigan (2026)

USAA is the cheapest insurer for Michigan teens, at $118 per month for liability-only coverage.

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Catherine Hiles
Written byCatherine Hiles
Catherine Hiles
Catherine HilesInsurance, Personal Finance Writer
  • 16+ years in personal finance and insurance writing

  • Certified Financial Education Instructor

Catherine Hiles is a freelance writer covering insurance, personal finance, and home improvement. A Certified Financial Education Instructor, Catherine is committed to providing readers with empowerment and insight when facing insurance decisions.

Her work has been published in TIME, The Penny Hoarder, BobVila.com, Tom's Guide, and Angi. She has a bachelor's degree in communication studies from the University of Chester in the United Kingdom. Catherine lives in Ohio with her husband, two children, and two energetic dogs.

MacKenzie Korris
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 21630969

MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.

John Leach
Reviewed byJohn Leach
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John LeachLicensed P&C Agent, Chief Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 20461358

John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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Quick Facts
  • Michigan teens pay an average of $278 per month, compared to the overall average of $177 per month.

  • ${AUTO_CHEAPEST_FULL_STATE_MI_CARRIER_1_AGE-TEEN} is the cheapest insurer for full coverage in Michigan for teen drivers, with rates of $${AUTO_CHEAPEST_FULL_STATE_MI_PRICE_1_AGE-TEEN} per month.

  • Motor vehicle crashes cause three out of five accidental teen deaths in Michigan.[1]

Cheapest car insurance for teens in Michigan

The average cost of car insurance for Michigan teens is $353 per month for a full-coverage policy and $202 per month for liability-only coverage.

These rates are for individual policies, but it’s often cheaper for teens to stay on their parents’ policies. Families can shop around for quotes and look into discounts to keep costs down. The following table shows the average monthly car insurance quotes for teens in Michigan, based on Insurify data.

The below rates in Michigan are estimated rates current as of: Thursday, July 9 at 5:00 PM PDT. 
Insurance Company
Average Quote: Full Coverage
Average Quote: Liability Only
USAA$204$118
Auto-Owners$223$130
Chubb$248$144
Progressive$268$174
Safeco$369$211
Liberty Mutual$376$206
GEICO$418$282
National General$434$195
State Farm$441$257
Bristol West$443$223
Direct Auto$529$251
Travelers$549$318
Disclaimer: Table data sourced from real-time Michigan car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Michigan may vary based on the policy buyer's unique driver profile.

Best car insurance companies for teens in Michigan

We researched several Michigan car insurance companies, considering rates, available discounts, customer satisfaction ratings, and teen-friendly features. The following insurers are among our top picks for car insurance for teens in Michigan.

Auto-Owners: Best for cheap rates for teens in Michigan

User Reviews
4.3
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.2 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$69/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$118/mo
Details
4.3
Best choice in MichiganBased on 356 verified driver reviews and ratings
Auto-Owners's score
Industry average
Coverage options4.03.2
Customer service3.73.6
Discounts3.52.9
Policy transparency3.93.1
Value3.52.9
How drivers feel about Auto-Owners

Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.

Based on analysis of verified reviews collected by Insurify

Best in Michigan for
Cheap rates
Senior drivers
Ample discounts
Showing 6 reviews from Michigan driversSee all 155 Auto-Owners reviews
Paul
Verified Review
Auto Owners
Auto Owners' rates have increased year after year.
Scott
Verified Review
Poor
Prices are too high.
William
Verified Review
Claims handled great but very expensive
Way too expensive.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
646
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.46
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company

Auto-Owners has some of the cheapest rates for Michigan teen drivers. The company also offers a teen driver monitoring discount, which uses GPS data or a smartphone app to track your child’s driving and rewards responsible behavior.

Pros
  • Cheaper rates for teens than many competitors in Michigan

  • Teen driver monitoring discount

  • Widespread independent agent presence in Michigan

Cons
  • Below-average J.D. Power customer satisfaction rating in Michigan

  • No online quotes available

  • Poor Trustpilot reviews

USAA: Best for teens in military families in Michigan

User Reviews
4.9
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.1 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$69/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$119/mo
Details
4.9
Best choice in MichiganBased on 4,136 verified driver reviews and ratings
USAA's score
Industry average
Coverage options4.93.2
Customer service4.93.6
Discounts4.92.9
Policy transparency4.93.1
Value4.92.9
How drivers feel about USAA

Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.

Based on analysis of verified reviews collected by Insurify

Best in Michigan for
Members of the military community
Outstanding customer service
Competitive rates
Showing 12 reviews from Michigan driversSee all 1,649 USAA reviews
James
Verified Review
Average
Prices keep increasing.
Mark
Verified Review
Not as good as they were
The insurance rates are getting too expensive.
Jose
Verified Review
It's Just Not Reasonable
Overpriced insurance.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
726
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.31
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company

USAA is an excellent option for eligible teen drivers in Michigan military families. The company’s rates are among the lowest in Michigan. Military families get unique benefits, including up to 15% off their premiums for garaging their car on base and a premium discount for storing their car.

Pros
  • Low car insurance rates for eligible teen drivers in Michigan

  • Unique benefits for military families

  • Top J.D. Power customer satisfaction rating in Michigan

Cons
  • Available only to active-duty military, veterans, and eligible family members

  • No 24/7 live customer service

  • No local agents in Michigan

Progressive: Best for discounts for teens in Michigan

JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
648
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.7 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$111/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$171/mo
Details
How drivers feel about Progressive

Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.

Based on analysis of verified reviews collected by Insurify

Best in Michigan for
Competitive rates
Easy buying process
Telematics program
Showing 72 reviews from Michigan driversSee all 8,907 Progressive reviews
Tonia
Verified Review
Company Is Spam
I didn’t ask for calls or insurance. Please don’t run my credit.
Mary
Verified Review
Excellent
We don’t drive many miles, so it’s very expensive.
Jennifer
Verified Review
Sneaky
My premium doubled, and instead of communicating what happened, they just charged my account. It was unexpected and really affected my finances for the month.
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company

Progressive offers several auto insurance discounts to lower the cost of car insurance for teens in Michigan. One of the most notable is its teen driver discount, which becomes available after 12 months of continuous coverage. Progressive also offers a good student discount that could save you around 5% if your child maintains a B average or higher.

Pros
  • Several teen driver discounts available

  • Second-largest insurer in Michigan by market share

  • Offers accident forgiveness

Cons
  • Below-average J.D. Power customer satisfaction in Michigan

  • Poor Trustpilot reviews

  • Higher rates than some competitors

Best car insurance discounts for MI teens

Most major insurance companies offer discounts aimed at teen drivers, though the exact discounts vary by insurer. The Michigan Department of Insurance and Financial Services (DIFS) recommends comparing quotes and asking insurers about all available discounts when adding a teen driver to your policy.

Here are a few of the most common discounts:

  • Safe driver discount: Some insurance companies may offer a discount for teens who complete a safe driver program or enroll in a telematics program that monitors their driving behavior. These programs can help teens become safer drivers while saving money on their insurance premiums.

  • Good student discount: Some insurers will lower premiums for Michigan teens who maintain at least a B average.

  • College student away from home discount: You may qualify for a discount if your teen attends college away from home for much of the year and doesn’t take a car with them.

  • Bundling discount: Your insurer may offer you a discount if you bundle your car insurance with your homeowners, renters, or life insurance policy.

  • Vehicle safety devices discount: If your car has qualifying safety or anti-theft devices, daytime running lights, or anti-lock brakes, you may be eligible for a car insurance discount.

Find Car Insurance for Teens in Michigan

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Why is car insurance so expensive for teen drivers in Michigan?

Michigan’s no-fault insurance system contributes to higher insurance costs for many drivers, and teens often pay even more because of their higher crash risk. Car insurance companies set premiums based on risk, and teens are among the riskiest drivers.

In fact, motor vehicle crashes cause approximately three out of five accidental deaths for teens in the Wolverine State, according to data from the Michigan Department of Health and Human Services.

Michigan drivers must carry personal injury protection (PIP) and liability insurance. This can increase rates for all drivers, including teens.

Here are some key factors that affect car insurance premiums for teens:

  • Age: Michigan teens are more likely to be involved in fatal crashes than older drivers.

  • Driving record: If you’re one of the approximately 7% of Michigan drivers with a speeding ticket, at-fault accident, or driving under the influence (DUI) conviction on your record, you’ll likely pay more than a driver with a clean record.

  • Average mileage: Michigan drivers travel approximately 13 miles to work, according to state data, which is about 1 mile more than the national average. More miles on your car increase the likelihood of an accident.

  • Insurance type and amount: Sticking to Michigan’s minimum insurance requirements can lower your premiums, while opting for unlimited PIP coverage or higher bodily injury liability coverage can increase your costs.

Michigan car insurance requirements for teen drivers

The state of Michigan requires all drivers, including teens, to carry a certain amount of auto insurance. The table below shows the minimum insurance requirements in the Wolverine State.

Coverage Type
Minimum Amount
Required or Optional?
Personal injury protection (PIP)$250,000 per person, per accidentRequired
Property protection insurance (PPI)Up to $1 million for damage in MichiganRequired
Bodily injury liability (BI)$50,000 per person / $100,000 per accidentRequired
Property damage liability (PD)$10,000 for property damage in another stateRequired

Michigan has a graduated driver licensing system for teens younger than 18. At age 14 years and 9 months and after passing the first stage of driver’s education, teens can get a level 1 learner’s license and drive under adult supervision.

After passing their second driver’s education and skills tests, they’ll move on to an intermediate license. Intermediate licenseholders can’t drive between 10 p.m. and 5 a.m. and generally can’t have more than one passenger younger than 21 in the vehicle at a time.

Consequences for teens driving without insurance in Michigan

Driving without insurance in Michigan is a misdemeanor. Teens who drive without insurance can face a fine of up to $500 and up to one year in jail. They may also lose their license for 30 days, or until they can provide proof of insurance.

Michigan also warns teens to make sure any vehicle they drive is properly insured. If an uninsured teen causes a crash, the state may hold them personally liable for the damages.

How to get cheaper car insurance for teen drivers in Michigan

Car insurance for teens can be expensive, but you have ways to lower your costs. Here are some cost-saving tips to consider.

Comparison shop

Quotes for teen drivers in Michigan can vary dramatically between insurers, so the best thing you can do to get cheaper coverage is to shop around. Get at least three quotes from different insurance companies, making sure each quote has similar coverages.

Add your teen driver to your policy

It’s usually cheaper to add a teen as a secondary driver on their parents’ policy than to buy a separate policy. In Michigan, teens on a family policy pay, on average, significantly less than those with their own policy, according to Insurify data.

Look for discounts

Most insurance companies offer several discounts to help lower coverage costs. Common options in Michigan include safe driver, low-mileage, multiple cars, safety equipment, and multi-policy discounts.

If your teen drives less than the average Michigan driver, about 9,000 miles per year, according to Insurify data, you may also qualify for a low-mileage discount.

Opt for a lower PIP choice

Michigan law lets you choose between six different PIP coverage levels:

  • Unlimited coverage

  • Up to $500,000 in coverage

  • Up to $250,000 in coverage

  • Up to $250,000 in coverage with medical exclusions

  • Up to $50,000 in coverage

  • Coverage opt-out for Medicare enrollees

Lowering your PIP coverage can decrease your premiums, but you’ll receive less coverage if you need to make a claim.

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Should your teen be on your policy or buy their own?

It’s usually cheaper for teens to be added to their parents’ policy than to purchase their own. In Michigan, policyholders can save an average of $1,060 per year by adding their teen driver to their own policy rather than buying a separate one.

The age of majority in Michigan is 18. That means teens younger than 18 years old must have written parental consent to buy their own policy. Adding a teen driver to a family policy saves both time and money.

The table below shows the average monthly cost for a full-coverage policy for teens on their family’s policy and on their own policy, with cost differences highlighted.

Policy Type
Average Monthly Cost
Average Yearly Cost
Added cost of teen on family policy$256$3,179
Teen on own policy$353$4,238
Cost difference$88$1,060
Disclaimer: Table data is based on real-time Michigan quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Although adding a teen to their parents’ policy is usually easier and cheaper, in some scenarios it makes sense for a teen to have their own individual policy. For example, a teen who owns a vehicle in their own name or who doesn’t live with their parents and isn’t in school may need to buy their own insurance coverage.

Cheap car insurance for teen drivers in Michigan FAQs

The answers to the following questions can help you better understand cheap car insurance for teen drivers in Michigan.

  • What company has the cheapest insurance for a young driver in Michigan?

    USAA has the cheapest liability coverage insurance for young drivers in Michigan, with an average rate of $118 per month.

  • What are the best car insurance companies for young drivers in Michigan?

    Auto-Owners, USAA, and Progressive are three of the best car insurance companies for young drivers in Michigan, according to Insurify data. USAA and Auto-Owners are among the cheapest, and Progressive offers several teen driver discounts.

  • Do you need to insure your teen while they have a learner’s permit?

    Michigan requires all drivers, including teens, to carry state-minimum coverage, so it’s a good idea to add your teen to your policy as soon as they get their learner’s permit.

  • What happens if you don’t add a licensed teen to your policy in Michigan?

    An uninsured licensed teen could face fines of up to $500, jail time of up to one year, and a license suspension of up to 30 days. Adding your teen to your insurance as soon as they get their learner’s permit helps avoid these penalties.

  • How can young drivers in Michigan lower their car insurance premiums?

    Young drivers in Michigan can lower their car insurance premiums by shopping around and choosing coverage that fits their needs. They can also increase their comprehensive and collision coverage deductibles, select a lower PIP coverage level, and ask insurers about available car insurance discounts.

Sources

  1. Michigan State Police. "Teen Drivers."
Catherine Hiles
Written byCatherine HilesInsurance, Personal Finance Writer
Catherine Hiles
Catherine HilesInsurance, Personal Finance Writer
  • 16+ years in personal finance and insurance writing

  • Certified Financial Education Instructor

Catherine Hiles is a freelance writer covering insurance, personal finance, and home improvement. A Certified Financial Education Instructor, Catherine is committed to providing readers with empowerment and insight when facing insurance decisions.

Her work has been published in TIME, The Penny Hoarder, BobVila.com, Tom's Guide, and Angi. She has a bachelor's degree in communication studies from the University of Chester in the United Kingdom. Catherine lives in Ohio with her husband, two children, and two energetic dogs.

MacKenzie Korris
Edited byMacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
MacKenzie Korris
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 21630969

MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.

John Leach
Reviewed byJohn LeachLicensed P&C Agent, Chief Copy Editor
Photo of an Insurify author
John LeachLicensed P&C Agent, Chief Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 20461358

John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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