Michigan's Big Industry
My Michigan-dwelling grandson will be 15 soon and will start learning to drive. He can’t get a full license until he’s 17, though, as the state wants to limit times and amounts of teen driving, presumably for safety reasons. That’s sensible – teen drivers are more likely to get into accidents. Despite this, the state prevents insurance companies from requiring people to purchase additional coverage for the teenager, even though between ages 16 and 17 the boy will be driving on his own.
Why is this? It seems strange for an insurance policy not to reflect known risks. Apparently, this restriction is imposed by the State of Michigan. It is yet another way in which the state subsidizes purchases of the local product – automobiles. (The same thing is not true in Texas; once a kid obtains a limited license that allows him/her to drive without an adult, additional insurance must be purchased.) (HT: AH)