How Much Does Car Insurance Cost for 16 Year Olds in Michigan?

The safety and performance level of the vehicle needing coverage is a large consideration when consumers are trying to find affordable insurance for 16 year olds. Vehicles with limited speed and performance, advanced safety features, or a positive history of liability claims will cost significantly less to insure than adrenaline junky models. The next lists estimates insurance costs for some of the most cost-effective automobiles to buy coverage for.

Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in specific location information which can revise premium rates significantly.

Data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific zip code location which can decrease or increase premiums noticeably.

Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in vehicle garaging location which can influence premium rates noticeably.

For new drivers, one of the largest considerations that control car insurance rates is where you normally keep your vehicle. Areas with more people or more claims like Detroit, Southfield, and Warren tend to have higher rates, whereas areas with less traffic congestion and claims benefit from lower prices.

The following table illustrates the most expensive cities in Michigan for 16 year olds in which to buy car insurance.

Premium amounts are approximated as specific Michigan garaging address can raise or lower premium rates noticeably.

Full coverage versus liability only rates

Finding cheap insurance for 16 year olds in Michigan is the goal of the majority of vehicle owners, and one of the best ways to lower the cost of insurance is to not buy comprehensive and collision coverage. The information below illustrates the difference between insurance rates with full phyical damage coverage and with liability coverage only. The premiums assume no claims or driving citations, $1,000 deductibles, marital status is single, and no discounts are applied.

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If the expense is averaged for all age categories, full coverage costs $2,877 per year more than carrying just liability coverage. That is a large expense which might make you wonder when is it a good idea to stop buying full coverage. There is no exact rule for excluding comp and collision coverage, but there is a general guideline. If the annual cost of coverage is 10% or more of any settlement you would receive from your insurance company, then you might want to consider buying only liability coverage.

For example, let’s say your vehicle’s replacement value is $10,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $9,000 after paying your policy deductible. If you are currently paying more than $900 annually for physical damage coverage, then it could be time to drop full coverage.

There are some cases where buying only liability insurance is not a good idea. If you still have a loan on your vehicle, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should maintain full coverage.

Who has the cheapest insurance quotes for new drivers?

There are a variety of different ways to find affordable auto insurance in Michigan, but the most preferred are through an exclusive insurance agent like Allstate or State Farm, an independent insurance agent, or direct from companies such as Progressive or Geico. Each way is similar, but it’s important to understand the differences in how they provide rate quotes.

Independent insurance agencies write for multiple companies and can provide price quotes from each one. These agents are not employed by one specific company and can provide you with more rate quotes, which can give you improved odds of finding cheaper coverage. If you are not satisfied with one company, it’s easy for the agent to move the policy and the insured can keep the same agent.

An exclusive agent is only able to write with one insurance company, two of the more popular are Liberty Mutual and Allstate agents. These guys and gals cannot provide rates from more than one company, so it’s a good idea to get additional price quotes.

Auto insurance from a direct company means you forego an agent and instead buy from a direct company like Geico or Progressive. This auto insurance option may be preferred by families who have fewer assets and have a decent understanding of what limits they need.

So out of those three methods, which one works best to find cheap insurance for 16 year olds in Michigan? We’d like to say buying from a direct company yields the cheapest rates since that prevents the need to pay agent commissions, but in reality, that argument does not hold true. We could also say that buying auto insurance from an independent agent guarantees the best prices since they can provide multiple quotes, but again, it’s not a sure thing. In many cases, exclusive agencies may have very competitive prices that are the cheapest.

Because it’s impossible to say who has the best auto insurance rates, the only real way to buy the cheapest policy is to get quotes and compare. To cover all the bases, get quotes from all three types to have the best rate selection. For a list of auto insurance companies with low rates, click here to view.

How to find cheaper auto insurance for 16 year olds

The list below shows many penny-pinching suggestions that can help Michigan drivers quote the cheapest coverage.

• Bundle car and home insurance and save money
• Pay for small claims rather than turning them in to your insurance company
• Save money by insuring older vehicles for liability only
• Avoid having at-fault accidents
• Ensure your driving record is clean
• Buy a car with high safety ratings
• Look for cheaper rates once a year by shopping around

The last suggestion is highly critical, as was discussed in the article above. Car insurance prices fluctuate constantly, so drivers shouldn’t be reluctant to change to a new company if a more affordable price is available. Staying with the same car insurance company is fine, but we do not recommend it if it’s costing you thousands of dollars over several years. If you have a few minutes, now is a great time to shop around and find cheaper insurance for 16 year olds.