Saving on Insurance Costs
When you’re ready to hit the road, you’ll need auto insurance coverage. Michigan requires all licensed vehicles to have auto insurance, which will help pay for injuries or damages if you’re in a crash. Check with your family’s insurance agent to find out about available coverage and when you should be added to the policy.
Saving Money on Car Insurance
Risk of a crash is significantly higher for teen drivers, particularly during the first year of driving. So, their auto insurance rates usually cost more. Here are a few ways you can help your family save some money.
- Keep your grades up. Most auto insurers offer lower auto insurance rates for students with a “B” or higher grade average.
- Investigate discounts. Many insurers also offer discounts for teen drivers who complete driver’s education or defensive driving courses.
- Drive carefully! Avoid crashes and tickets, which can cause a teen driver’s auto insurance rates to jump. Plus, it’s the safe thing to do.
- Don’t get your own car yet. If you won’t be the main driver for any of your family’s vehicles and can be classified as an occasional driver of one car, you could save your family hundreds of dollars.
- If you need a car, get a sensible one. Many experts agree that mid-sized sedans are the safest choice for teen drivers, and the cars often have the lowest auto insurance rates, too.
- Partner with your parents. Using a Parent-Teen Driving Agreement could help you avoid a crash or ticket that would increase your rates.
Car Insurance Requirements in Michigan
All Michigan drivers are required to have liability auto insurance at the minimum levels of $20,000 per person for Bodily Injury, $40,000 per crash for Bodily Injury and $10,000 for Property Damage (20/40/10). Auto insurance companies in Michigan determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive.
Learn more about insurance available through AAA.