How Much Is Car Insurance for an 18-Year-Old in Michigan?

In Michigan, the average cost of car insurance for an 18-year-old driver is $219 per month for liability coverage and $330 for full-coverage insurance. This is higher than the national average of $198 per month for liability coverage and $350 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.

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.

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.

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:

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.

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