Teen Driver Insurance in Michigan — Parents' Guide
Michigan requires 50/100/10 liability coverage and is a no-fault state.
Compare Teen Driver Insurance RatesMichigan at a Glance
50/100/10
Minimum liability limits, in thousands of dollars (per person / per accident / property)
No-fault
Each driver's own policy pays their injuries first, whoever caused the crash
Required
PIP coverage must be on every policy
14½
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
Minimum Coverage Requirements in Michigan
Teen drivers in Michigan progress through a three-stage graduated licensing system: a learner's permit at age 14 years 9 months (Level 1), an intermediate license at 16 (Level 2), and a full unrestricted license at 17 after completing six months with a clean intermediate record. Michigan law mandates that all insurers offer a good student discount to teen drivers who maintain at least a 3.0 GPA or equivalent, making it one of the few states where this discount is legally required rather than optional.
No-Fault Personal Injury Protection (PIP)
Bodily Injury Liability
Property Damage Liability
Uninsured/Underinsured Motorist Coverage
Collision and Comprehensive
What Drivers Pay in Michigan
$388–$550/mo
Typical monthly rate in Michigan, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
What Affects Your Rate
- Parents must provide report cards or transcripts annually to maintain eligibility.
- Telematics programs: Usage-based insurance programs from major Michigan carriers monitor braking, speed, and nighttime driving.
- Vehicle type: Adding a teen to a policy covering a high-performance or luxury vehicle can double the premium increase compared to an older sedan or minivan. In Michigan, insurers rate teen drivers based on the vehicle's repair costs, safety ratings, and theft risk.
Find the Right Policy for Your Teen
Compare Teen Driver Insurance RatesRules for new drivers
Night driving
10pm-5am
Passengers
no more than 1 passenger younger than 21
Source: IIHS and state DMV records, verified July 2026
Coverage Types
Liability Insurance (Bodily Injury + Property Damage)
Covers injuries and property damage the teen driver causes to others. Michigan's 20/40/10 minimums are inadequate for serious accidents involving newer vehicles or significant injuries.
No-Fault PIP Coverage
Michigan's unique no-fault system covers medical bills and lost wages regardless of fault. Parents can choose PIP levels from $50,000 to unlimited, or opt out with qualifying health insurance.
Uninsured/Underinsured Motorist Coverage
Protects the teen and family if hit by a driver with no insurance or inadequate coverage. Not required in Michigan, but highly recommended.
Collision Coverage
Pays to repair or replace the teen's vehicle after an at-fault accident, minus the deductible. Required by lenders if the vehicle is financed or leased.
Comprehensive Coverage
Covers non-collision damage: theft, vandalism, hail, flooding, and animal strikes. Required by lenders if the vehicle is financed.
Telematics and Usage-Based Discounts
Smartphone apps or plug-in devices monitor the teen's driving behavior—speed, braking, cornering, and nighttime trips. Safe driving earns discounts of 15–30%.