Cheap Car Insurance Quotes for Teenagers in Michigan

The words “low-cost” and “insurance” really shouldn’t be used in the same sentence, specifically when you are looking for the best price on coverage for teenagers. Let’s teach you a few of the factors that determine auto insurance premiums, and find out if we can help you reduce the price of the next policy you buy.

For teen drivers, one of the big criteria that is used to help calculate auto insurance rates is your zip code in Michigan. Cities with larger populations or higher claims like Detroit, Southfield, and Flint tend to have higher rates, whereas areas with less congestion have the luxury of lower rates.

The following table illustrates the most expensive places in Michigan for teenagers to buy car insurance in.

Annual rates are estimated as the specific Michigan residence address can alter prices greatly.

Finding reliable, cheap car insurance is confusing at best, and finding out which companies offer the lowest-priced car insurance rates for teenagers involves even more shopping around. Policy rates will probably be much pricier than the average policy in Michigan attributed to the potential for higher claims that goes along with selling coverage for teen drivers, but competitive insurance should be attainable with a little diligence.

Every car insurance company has their own guidelines for setting prices, so let’s rank the most competitive car insurance companies in Michigan.

Best Insurance Companies for Teens

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USAA normally has some of the most affordable car insurance rates in Michigan at around $987 each year. GEICO, Safeco, MetLife, and Chubb would also be considered some of the more affordable Michigan car insurance companies.

In the above example, if you are a policyholder with GEICO and switched to USAA, you could earn yearly savings of around $46. Drivers with Safeco could save as much as $92 a year, and MetLife policyholders might realize rate reductions of up to $377 a year.

These policy prices are averages across all insureds and vehicles and and are not calculated with a rate increase for teenagers. So the car insurance company that is most affordable for your situation may not even be included in the above list. That underscores the importance of why you need to get car insurance quotes using your own specific driver and vehicle information.

The type of vehicle you are buying coverage for is one of the primary factors when shopping around for cheap auto insurance for teenagers in Michigan. Vehicles with average performance, advanced safety features, or a low likelihood of having liability claims will cost less to insure than higher performance models.

The list below estimates insurance premiums for a selection of the cheapest automobiles to insure.

Table data represents single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in specific garaging location which can influence price quotes greatly.

Looking at the data, you can see that vehicles like the Honda CR-V, Ford Escape, Chevrolet Traverse, Toyota Prius, and Ford F-150 should be some of the most budget-friendly vehicles to insure for teen drivers. The cost of a car insurance policy will be higher anyway because of the fact that there is more claim exposure for teenagers, but in general those vehicles will most likely have the cheapest rates compared to all other vehicles.

The information below illustrates how your choice of deductibles can change insurance costs when getting quotes for cheap insurance for teenagers. The data assumes a single male driver, comprehensive and collision coverage, and no other discounts are factored in.

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The data above shows that a 30-year-old driver could cut expenses by $890 a year by changing from a $100 deductible to a $500 deductible, or save $1,342 by selecting a $1,000 deductible. Young drivers, like the Age 20 chart data, can save as much as $2,618 annually just by choosing larger deductibles.

If you do make the decision to raise your deductibles, it will now be necessary to have enough funds in savings to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

Get discounts on Michigan car insurance rates

Insurance providers that provide cheap auto insurance for teenagers in Michigan could also offer price discounts that could potentially reduce rates by as much as 40% or more if you are eligible to receive them. The best car insurance companies and some of the premium reductions they offer are included below.

• GEICO policyholders can earn discounts including seat belt use, air bags, multi-policy, anti-lock brakes, and membership and employees.
• MetLife offers discounts including good driver, claim-free, good student, defensive driver, and accident-free.
• State Farm may include discounts for anti-theft, defensive driving training, good student, accident-free, Steer Clear safe driver discount, and multiple policy.
• Progressive has discounts for online quote discount, multi-policy, online signing, continuous coverage, good student, homeowner, and multi-vehicle.
• Mercury Insurance may offer discounts for age of vehicle, low natural disaster claims, type of vehicle, location of vehicle, and accident-free.
• 21st Century offers discounts for driver training, automatic seat belts, teen driver, theft prevention, and defensive driver.
• Allstate offers premium reductions for good student, passive restraint, utility vehicle, multi-policy, resident student, teenSMART discount, and new car.

The diagram below visualizes the comparison of insurance costs with and without discounts applied. The premiums are based on a male driver, no accidents, no driving violations, Michigan state minimum liability limits, full coverage, and $100 deductibles.

The first bar for each age group shows the average annual price with no discounts. The second shows the rates with vehicle safety, paperless filing, anti-theft, paid-in-full, passive restraint, and continuous coverage discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on car insurance for teenagers is 28% or $1,890.

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Allstate vs State Farm vs Geico vs Progressive

When shopping around for car insurance for teen drivers in Michigan, the most popular companies are Allstate, State Farm, Geico, and Progressive. When combined, they make up nearly half of all auto insurance policies in force. The following table rates ratings for price and service, as well as some optional coverages that may be available in your state.