In Michigan, 16-year-old drivers pay an average of $313 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:

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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:

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  Age

  Young drivers pay higher car insurance rates than older drivers because of their inexperience behind the wheel.^[4] Generally, car insurance rates decrease with age.

• 

  Gender

  Male drivers statistically have a higher chance of getting into an accident than female drivers.^[5] For this reason, teen males pay higher insurance rates than teen females.

• 

  Vehicle type

  Your vehicle affects your insurance costs in several ways. For example, cars with a higher manufacturer’s suggested retail price (MSRP) typically cost more to repair or replace, leading to higher insurance costs. Safety features also play a role — cars equipped with more safety features usually have lower insurance rates.

• 

  Theft rates

  Different vehicles have different theft rates. Whether due to a lack of anti-theft features or being popular with thieves, cars with higher theft rates often have higher insurance premiums.

• 

  Geographic location

  Where you live significantly affects insurance rates. Drivers in locations with more traffic and higher crime rates tend to pay more for coverage than drivers who live in areas with less congestion and crime.

• 
• 

  Coverage type

  The type of coverage you buy can raise or lower your costs. For example, choosing a liability-only policy is typically more affordable than a full-coverage policy.

• 

  Discounts

  Ask about discounts to help lower your teen’s car insurance costs. Teens who complete a defensive driving course or earn good grades may qualify for savings.

• 

  Bundling policies

  Purchasing multiple policies through the same insurer, like home and auto, can save money.

• 

  Deductibles

  A deductible is the amount you pay out of pocket when filing a claim before your insurance kicks in. Higher deductibles usually mean lower premiums.

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.

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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.