Michigan (MI) Teen Auto Insurance Laws, Rates & Requirements

Teen and young adult drivers are involved in the largest number of fatal car crashes in the state of Michigan. There were 114,659 single vehicle car crashes involving 16-24 year olds in 2008 in the state. 23,654 of these crashes caused serious injuries and 289 resulted in death. Faced with figures that place the state of Michigan high on the list of states with disturbing teen accident statistics, Michigan developed a Graduated Driver Licensing (GDL) system that is both rigorous and a model for other states. Under Michigan’s comprehensive Graduated Driver Licensing program, everyone is involved including instructors, parents, teens, and third-party testers. The success of Michigan’s GDL system also depends on enforcement of the laws. Michigan peace officers have a zero tolerance policy for teens that violate the laws of the state’s GDL system.

Continue reading to learn more about Michigan teen driver licensing and laws and the consequences for violating them.

Michigan Graduated Driver Licensing (GDL) and Driver License Requirements

Michigan’s Graduated Driver Licensing (GDL) system consists of two segments (segments 1 and 2) and three licensing levels including Level 1 License, Level 2 License, and Level 3 License.

Segment 1
To begin Segment 1 driver education, teens must be 14 years and 8 months old and they must have permission from their parent or guardian. Segment 1 consists of the driver education course with a minimum of 24 hours of classroom instruction, 6 behind-the-wheel instruction, and a minimum of 4 hours of observation time as a passenger in training.

Level 1 License
This is a supervised learner’s license that must be held for at least 6 months from the date of issuance before applying for a Level 2 License

Segment 2
Teen must complete a minimum of 30 hours of supervised driving time, including a minimum of two hours night driving. He must also complete 6 hours of classroom instruction with a driver education provider who is certified to teach teens.

Level 2 License
To obtain a level two license, the teen must successfully complete all terms of Segment 1 and Level 1 Licensing. In addition, he must have completed a minimum of 50 hours of behind-the-wheel driving

Level 3 License
To obtain a Level 3 License, you must be 17 years of age and violation and suspension free. The teen cannot apply for a Level 3 license until he or she has held a Level 2 License for at least 6 months. The Level 3 License is automatically mailed to the teen, with parent or guardian approval at Level 2. There are no restrictions on the Level 3 License. The state of Michigan points out that parents may continue to place limits on their teen’s driving privileges.

To obtain a Level 1 Learner’s License you must:

•    Provide a Certificate of Completion for Segment 1
•    Provide a social security card
•    Proof of U.S. Citizenship
•    Proof of Identity
•    Proof of Michigan residency
•    Signature of parent or guardian on application
•    Pass a vision test

To obtain your Level 2 License you must:

•    Be at least 16 years old
•    Meet physical and medical licensing standard
•    Pass a driving skills test

Michigan Teen Driving Laws and Enforcement

Under the terms of the Level 1 learner’s license, teens may only drive with a licensed parent or guardian or designated licensed adult age 21 or older. In addition, the parent, guardian or designated adult must sit in the front passenger seat at all times. If driving with a designated adult, the teen driver should carry a signed letter from a parent or guardian.

Under the terms of the Level 2 License, teens may not drive without a designated licensed adult between 12 a.m. and 5 a.m. As stated earlier, there are no restrictions on Level 3 license. However, all newly licensed drivers in Michigan are placed on automatic probation for at least 3 years. If the teen receives a ticket or is involved in a crash during this time, he faces personal reviews called driver assessment reexaminations. This may cause the teen’s license to be restricted, suspended, or both. This will cause the teen’s advancement to be delayed at all levels.

During the last 10 months of the probation period, license suspensions, tickets, or at-fault crashes will extend the probationary period until the licensee completes 10 months of consecutive, violation-free driving.

Michigan Cell Phone Use/Texting While Driving Laws

The Michigan Department of Transportation States that:

Michigan does not have a law specifically prohibiting cell phone use in a vehicle. A driver who becomes distracted by using a cell phone, and commits a traffic violation could be charged with careless driving, or with the specific violation, such as improper lane use, if they are drifting in and out of their lane.

Some municipalities have recently enacted local ordinances that prohibit using a cellular phone while driving within their respective jurisdiction.  Any municipality that establishes such an ordinance should post notification at their jurisdictional boundaries to alert motorists.

Michigan Teen DUI Laws

The state of Michigan does not tolerate drinking and driving, especially when it comes to teens. Proof of a Blood Alcohol Concentration level of 0.02% is all that is needed to convict a Michigan teen of DUI. A BAC of 0.02% is equal to as little as one beer, one glass of wine or one mixed drink for most people. It can be even less for some. If you are under the age of 21, and you get caught drinking and driving, under Michigan’s Zero Tolerance law, you risk losing your license. In addition, penalties for first offenses include:

•    Up to a $250 fine and/or up to 360 hours of community service
•    Restricted driver’s license for 30 days
•    Four points on your driving record
•    Payment of a $500 Driver Responsibility fee for two years

For a second offense, the time and monetary penalties listed above will increase as determined by the courts at the time of conviction and you will be charged with a misdemeanor.

Michigan Teen Auto Insurance Requirements

In the state of Michigan, all drivers must be covered under an auto insurance policy. You must carry minimum liability coverage of 20/40/10. This amounts to  $20,000 bodily injury liability for one person in an accident, $40,000 bodily injury liability for all injuries in one accident, and $10,000 for property damage liability.
Because the risk of an auto collision is significantly higher during the teens first year behind the wheel, Michigan auto insurance companies recommend purchasing higher amounts of coverage than the legal limits. If you plan to add a teen driver to your auto insurance policy, keep in mind that your annual rate will increase anywhere from $1,200 to $4,900 a year. The average increase, however, is $2,171 a year.

An increase in your auto insurance premium is inevitable once you add a teen to the policy, but this doesn’t mean you can’t cash in on special discounts designed just for teens. Auto insurance companies offer discounts ranging from 10-15% or more for:

•    Maintaining at least a B average
•    Successful completion of a state approved safe driver course

You can also lower your premiums on teen auto insurance if you avoid purchasing sports and luxury cars for your teen, if you opt for a higher deductible, or if you combine insurance policies into one (i.e. life, home, health, renter’s, etc.).