Teen Driver Insurance in Michigan: Parents Guide
Michigan requires 50/100/10 liability coverage and is a no-fault state.
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Michigan 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
The state operates under a graduated licensing system: 16-year-olds can obtain a Level 2 Intermediate License after holding a Level 1 Learner's Permit for at least 6 months and completing 50 hours of supervised driving, with restrictions on nighttime driving (midnight–5 a.m.) and passengers under 21 (limited to one non-family member for first 6 months). Michigan law requires all insurers to offer a good student discount for drivers under 25 who maintain a 3.0 GPA or equivalent—this is not optional for carriers.
Personal Injury Protection (PIP)
Bodily Injury Liability
Property Damage Liability
Collision Coverage
Comprehensive Coverage
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
Cover Your New Driver for Less
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 and property damage liability protect you when your teen causes an accident. Michigan's minimums (50/100/10) are low for a household with a young driver.
Full Coverage (Collision + Comprehensive)
Full coverage combines collision, comprehensive, and liability. For financed vehicles driven by teens, this is required by lenders and protects the vehicle investment.
Uninsured/Underinsured Motorist Coverage
Covers you if your teen is hit by a driver with no insurance or insufficient coverage to pay for damages. Not required in Michigan but often recommended.
Personal Injury Protection (PIP)
Michigan's no-fault PIP covers medical expenses and lost wages for everyone in your vehicle, regardless of fault. This is the most expensive component of Michigan auto insurance.
Telematics / Usage-Based Insurance
Smartphone apps or plug-in devices monitor driving behavior—hard braking, rapid acceleration, speed, and nighttime driving—and adjust rates based on actual performance.
Good Student Discount
A legally mandated discount in Michigan for drivers under 25 who maintain a 3.0 GPA or equivalent. Proof is typically required annually or semi-annually.