So how can car insurance be so expensive for teenagers? It all boils down to one determining factor: risk. Michigan auto insurance rates often base their quote on the driver’s experience, and since teenagers often have little to no driving experience yet, insurance companies will consider him to be high-risk.
Granted, inexperience is not the only reason that adolescents in Michigan face high insurance premiums; the type of car your kid drives, the area where he lives, and the deductible he chooses to pay all factor into the auto insurance amount. There’s also the fact that rates for car insurance in Michigan are the highest in the nation.