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How does a teen driver affect my auto insurance? | Michigan auto insurance

posted Jul 27, 2016, 10:13 AM by Jason Grubbs   [ updated Sep 14, 2016, 8:43 AM ]
Obtaining a driver license is an important event for teens and their parents, and one that also necessitates updating your auto insurance.

The State of Michigan has a Graduated Driver Licensing (GDL) program designed to teach teens to drive through a gradual program of educational courses, behind-the-wheel driving experience, and testing.  An excellent guide providing an overview of the program and helpful information for teen drivers and their parents may be found here.
In Michigan, most insurance companies automatically extend coverage from a parent's policy for teen permit holders and only require teenage drivers be formally insured when they have obtained their Level 2 license.  At that point you'll need to inform your agent of your new driver - providing their full name, date of birth, drivers' license number, and which vehicle the teen will be operating.
Teenage Driver - Auto Insurance

Teenage drivers are costly to insure - reflecting that, as a group, they tend to have more accidents than older, more experienced drivers.  In fact, teen drivers have crash rates 3 times those of drivers 20 and older per mile driven (source: Insurance Institute for Highway Safety).