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.
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 |
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 |
Auto-Owners's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.7 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
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.
Cheaper rates for teens than many competitors in Michigan
Teen driver monitoring discount
Widespread independent agent presence in Michigan
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 |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
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.
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.
Low car insurance rates for eligible teen drivers in Michigan
Unique benefits for military families
Top J.D. Power customer satisfaction rating in Michigan
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 |
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
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.
Several teen driver discounts available
Second-largest insurer in Michigan by market share
Offers accident forgiveness
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 accident | Required |
| Property protection insurance (PPI) | Up to $1 million for damage in Michigan | Required |
| Bodily injury liability (BI) | $50,000 per person / $100,000 per accident | Required |
| Property damage liability (PD) | $10,000 for property damage in another state | Required |
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 |
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
- Michigan State Police. "Teen Drivers."
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