What is the cheapest insurance for a 16-year-old in Michigan?
Auto-Owners, USAA, and Chubb have the most affordable rates for teen drivers, Insurify data shows.
In Michigan, 16-year-old drivers pay an average of $275 per month for car insurance. But you’re unlikely to pay this exact average rate since your personal circumstances affect your costs.
While age plays a role in insurance rates, it’s not the only factor insurers use to determine car insurance rates for a 16-year-old. Other aspects include gender, driving record, vehicle type, and coverage needs. Here’s what you should know about average car insurance costs for 16-year-olds in Michigan, comparing insurance rates, and what variables affect your costs.1
Cost of insurance for 16-year-olds in Michigan
Liability-only policies typically cost less than full coverage, regardless of driver age. For teen drivers in Michigan, Auto-Owners, USAA, and Chubb offer cheap car insurance.
The table below highlights the average monthly rates for 16-year-olds on their own policy. But to get their own policy, minors need written consent from a parent or guardian.2
Cost of adding a teen to a parent’s policy vs. getting their own policy
It’s generally cheaper to add a teen driver to a parent’s existing car insurance policy than it is for a teen to get a stand-alone policy.3
For example, two parents and a teen driver on one policy pay a national average of $599 per month for full coverage. In contrast, two separate policies (one for two parents and one for the teen driver alone) average $688 per month, which is approximately 15% more expensive than adding a teen to the parents’ policy.
But if your teen has a bad driving record or owns a vehicle you don’t want on your policy, it may make sense for them to buy their own policy.
The table below shows average monthly rates for liability-only and full-coverage policies based on three different scenarios:
Factors affecting insurance rates for 16-year-old drivers in Michigan
Several factors influence car insurance costs for 16-year-olds in Michigan. The following are some of the most common:
Comparing teen driver insurance rates in Michigan with other age groups
Teens in the Great Lakes State pay significantly more for car insurance coverage than drivers in other age groups.
The table below shows full-coverage and liability-only insurance rates by age group for Michigan drivers.
How to reduce insurance costs for 16-year-old drivers
Teen car insurance costs can add up quickly. Use the strategies below to help lower your premiums when shopping for the best car insurance.6
Ask about a good student discount. Insurers often offer a good student discount to teens with at least a B average.
Enroll your teen in a defensive driving course. An approved defensive driving course can help your teen driver stay safe on the road and may lead to an insurance discount.
Choose a higher deductible. Higher deductibles generally mean more affordable insurance premiums. If you can afford to pay higher comprehensive or collision deductibles out of pocket when filing a claim, increasing them can save you money.
Choose the right car. Some vehicles are more expensive to insure than others. Seeking out an affordable vehicle with lower theft rates and ample safety features can help you save on your teen’s insurance costs.
Add your teen to your existing car policy. It’s usually cheaper to add your teen to your existing policy than to buy a separate one.
Bundle policies. To save more, bundle your car insurance with other types of coverage, like home or renters insurance.
Shop around. Compare quotes from multiple insurance companies before each renewal to ensure you get the most affordable rates.
Insurance for 16-year-old drivers in Michigan FAQs
If you need more information about car insurance for 16-year-old drivers in Michigan, the answers to the following frequently asked questions may help.
Why is car insurance so expensive for a 16-year-old?
Car insurance for 16-year-old drivers is expensive mainly because teens lack driving experience. Car insurance companies see this as a risk and compensate with higher premiums.
Can a minor get their own car insurance in Michigan?
Yes. A minor can get their own car insurance in Michigan, but only with a parent’s or guardian’s written consent. It’s usually more affordable for a parent to add a teen driver to their existing policy.
Are discounts available for 16-year-old drivers in Michigan to lower their insurance costs?
Yes. Some insurance companies offer discounts if your teen completes an approved driver training program or gets good grades. You can also save by bundling policies, insuring multiple vehicles, or adding your teen to a car with safety features or a lower value.
Does the type of car a 16-year-old drives affect insurance costs in Michigan?
Yes. A newer, higher-value vehicle could be more expensive to insure than an older, more affordable vehicle. Additionally, vehicles with higher theft rates or repair costs often cost more to insure.
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