Michigan laws and teen insurance rates


04Teen drivers and their guardians, if they pay the premium know that the auto insurance rates for teens are much higher than the average. There are some logical reasons for this disparity. Firstly teen drivers usually tend to be more reckless. They also involve in behaviour that could be considered dangerous, such as racing and over speeding. Teen drivers are also more distracted because of text messaging or phone calls or by friends going together. All these reasons result in teenagers making up the high risk poll from an auto insurance company’s perspective.

There has been a change in recent times in Michigan laws. Licensing requirements were there for a while but in recent times they have been further tightened by the lawmakers in the state. The curfew for teenagers has now been moved to 2 hours earlier midnight to 10pm. Also teen drivers are not permitted to carry non-family members who are below the age of 21, except in situations where they are going to academic events or to school. There is a law against text messaging while the teen is driving. Although, there was also a chance of making a law to prevent cell phone usage by those who are 16 years of age, it had been stripped even before it could get to voting in the state legislature.

These state laws wouldn’t directly reduce the auto insurance rates for teenage drivers. However, these restrictions could go a long way in reducing accidents in which teenage drivers are involved. This in turn would reduce the accident claims and thereby the risk involved in case of a teen driver from an auto insurance company’s perspective. In fact, teenage drivers who want to reduce their auto insurance premiums further can do well by concentrating on academic excellence. This is because auto insurance premiums are usually lower for those students who have better grades than those who don’t.

Michigan is one of the states in recent times to introduce what would be known as graduate driving privileges. Under the laws there would be restrictions imposed on teenagers who have newly received license for driving. These restrictions will control how the teenager will operate motor vehicle on the roads, highways or streets, until a time when they could develop the right skills and judgement required to be a safe driver. These restrictions are on time of driving, destination and whom they can carry in their car.