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Cheap auto insurance for teenagers in Michigan

Cheap teen auto insurance in Michigan. Michigan auto insurance laws and regulations for teenagers. Cheap car insurance for young drivers in Michigan.

Michigan Teen Insurance Laws

All drivers in the state of Michigan must have the minimum mandatory auto liability insurance. This law includes your teenage driver. You must carry $20,000.00 for each individual injured or killed in an accident, $40,000.00 for all the people involved in the accident, and $10,000.00 to cover all property damages. Uninsured and underinsured coverage is not required in the state of Michigan nor is comprehensive and collision coverage. Since statistics show that the first year behind the wheel of a car is the prime time for teenage automobile accidents, your insurance company may recommend that you carry these policies on your teen as well as raising the limits on your liability insurance to more than the state requirements.

As the parent, you are required by the state of Michigan to take financial responsibility for your teenage driver. Your teen driver must carry their proof of insurance in the vehicle at all times. You must produce proof of insurance upon request by the authorities. In Michigan, this is the Michigan No Fault Insurance Certificate. Information supplied to the DMV by the insurance company will include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder. The auto insurance needs to be authorized by a qualified auto insurance company. Even if the teen is not at fault for an accident, they must provide proof of insurance to the officer on the scene.

They must also have proof of insurance for any regular traffic stop. Lack of proof will result in fines and the possible loss of their vehicle’s registration. These penalties include a ticket and fine of $200.00 to $500.00. They may also loose the license plates, their driver’s license and registration to the vehicle as well as be sentenced to one year in jail. They may also be required to prove they have liability coverage in the appropriate amounts for the next six months and pay a $50.00 fee along with other fees.

Adding your teen to your policy will generally be less expensive than putting them on their own auto insurance policy. Even then, the cost of adding your teen to your insurance policy will raise your premiums from $1200.00 to $4900.00 per year. On average, the premium will raise approximately $2,171.00 per year.

For each successive year that your teen maintains a good driving record, the premiums will most likely go down. To maintain a good driving record, your teen cannot have any traffic violations or accidents on their driving record. They cannot be picked up for a DUI or talking on their cell phone. Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums.

In addition to a clean driving record, teens who maintain a “B” grade point average will also receive a discount on insurance premiums. Another discount available for teens will be given when the teen has successfully completed a state approved safe driving course. The type of car your teen drives will also affect your insurance premiums. Don’t put your teen in a luxury car or sports car. It may also help lower your premiums if you avoid the top 10 stolen cares in the state of Michigan. These cars include:

1. 1994 Dodge Caravan
2. 1994 Honda Accord
3. 1991 Toyota Camry
4. 1996 Ford Taurus
5. 2000 Honda Civic
6. 2000 Dodge Intrepid
7. 1996 Jeep Cherokee/Grand Cherokee
8. 1994 Plymouth Voyager
9. 1997 Ford Crown Victoria
10. 2001 Dodge Stratus

Following these guidelines will save you between 10 to 15% on your auto insurance premiums for your teenage driver.