How To Keep Teenager Car Insurance Rates Low in Michigan

Reader’s Question:

My teen is starting to drive and I would like to know if there is any way to keep her car insurance low here in Michigan.

Jenny

Detroit MI

Auto insurance can be a major part of each family year’s budget. Decreasing insurance premiums can be one of the best ways for families to improve their budget. Families should focus on factors they have control over in order to decrease auto insurance premiums.

Driving record is the most important factor. A teen driver’s short driving history can affect the affordability of car insurance for teens. If a teen’s driving record has tickets or claims, his auto insurance rates can increase drastically. As such, parents should set example to their children that by doing defensive driving actually saves money. The teens look up to their parents even the way they drive and their habits when driving. As such, this affects how a teen will actually drive come future time.

One great activity the family can participate in that can also earn a discount is to take a safe driving course as a family. Most insurance companies offer discounts to drivers that take an approved safe driving course.

Can Teens Get Their Own Car Insurance Policy?

Reader’s Question:

Im only 17 years old and will be purchasing my first car net month or so. Is it possible to get car insurance without my parents?

Grey

Detroit MI

It is unlikely that you will be able to purchase car insurance policy without your parents or a legal guardian to help you sign with the contract.

An auto insurance policy is a legal contract. Many states require policyholders to sign the documents to make them binding and insurers generally have underwriting guidelines restrictions to the named insured should not be under the age of eighteen. Well since you said that you are 17 years old, it is unlikely that you can get your own car insurance policy without your parents with you to sign the contract with you.

Typically, you need list all members of the household that is 14 years old and older, whether they are licensed or not. These household members must be included in the rating otherwise they should be excluded specifically on the policy.

You can purchase an auto insurance policy but, because of your age your parent would need to sign the documents with you.

For the meantime, if you still live with your parents, you can be added to your parents policy until you become 18 years old. If your parents are worried of getting expensive car insurance rate, you can share payment for the premium until you get your own policy. Keep in mind that it is much cheaper to be added to your policy than having a separate policy.

Teen Driver Auto Insurance Question

Reader’s Question:

I have two teenage daughters that are going to be 16 in a few months. They will be obtaining their license shortly after that. Will they automatically be insured once they get their license on my insurance policy? They will only be driving with an adult. Do I have to add them on my insurance policy? As long as they drive one of my vehicles are they covered?

Howard

Bridgeport, CT

Insurance guidelines and state laws differ so you will need to inform your insurance company’s agent and discuss the licensing of your teenage daughters and when they will need to be added to the policy.

An insurance company is allowed to consider all resident operators of an insured car in rating of an auto insurance policy. This includes your teens, even if he or she has only a learner’s permit.

Some insurance providers will not require children to be added during the permit stage but will once they obtain their junior, provisional or full license. Other insurance companies have internal guidelines that require you to add your teens as soon as they start the licensing process. If you want to know the state laws regarding auto insurance for teens you can contact your state’s insurance regulator.

Auto Insurance For Teens

Reader’s Question:

I am 17 years. old and have no driver’s license or permit yet. I am having hard time finding information concerning car insurance options that would be available to me, so that I can get my license. Can you please give me any suggestion regarding this?

Jim

Detroit, MI

Typically, if you are residing with your parents, they can request their insurance company to add you to their policy once you are permitted or obtain a junior or full license. Insurance carriers differ about if they will require you on the car insurance policy with only a permit or will wait till you are licensed.

If you live on your own, as a inexperienced and young teen driver without a full license or even permit, it can be hard to find car insurance. Probably, you can get an insurance policy but most insurance providers will want you to acquire a full license within 30 to 45 days from the inception of your policy. If you cannot obtain a regular license by that time, then the insurance policy will cancel.

Some insurance companies might require you to list a fully licensed motorist of 21 years of age or older on the policy with you.