The vehicle model driven is probably the biggest factor when shopping for the most economical auto insurance for drivers under 25. Vehicles with lots of speed or power, poor passenger safety features, or an increased likelihood of liability claims will cost substantially more to insure than safer, lower-performance models. The information below estimates insurance rates for the most cost-effective vehicles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$5,403|
|Honda CR-V EX 4WD||$5,485|
|Jeep Wrangler Sport 4WD 2-Dr||$5,634|
|Honda Odyssey LX||$5,979|
|Ford Explorer XLT 2WD||$6,061|
|Ford F-150 STX Regular Cab 4WD||$6,070|
|Ford Edge SE AWD||$6,324|
|Chevrolet Impala LS||$6,329|
|Toyota RAV4 Limited 2WD||$6,406|
|GMC Sierra SL Extended Cab 2WD||$6,415|
|Jeep Grand Cherokee Laredo 2WD||$6,406|
|Toyota Camry LE||$6,414|
|Chevrolet Equinox LT 2WD||$6,406|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$6,484|
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Table data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in specific Baltimore, MD garaging location which can modify coverage rates greatly.
Based on these rates, cars like the Ford Escape, Honda CR-V, and Jeep Wrangler should be the most affordable vehicles to insure for drivers age 25 and younger. Car insurance rates will be more expensive just due to the fact that there is more liability risk for drivers under 25, but overall those makes and models will most likely have the lowest prices that you’ll find.
One of the many criteria that aid in calculating insurance cost is where you keep your vehicle. Cities with larger populations tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper auto insurance prices.
The following table shows the highest-priced areas in Maryland for drivers under 25 to buy car insurance in. Baltimore is listed at #1 with a yearly cost of $1,796 for the average policyholder, which is about $150 monthly.
|Rank||City||Premium Per Year|
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Rates are estimated as zip code location can lower or raise insurance rates considerably.
Trying to find low-priced insurance is not the easiest thing to do, and finding out which company offers the cheapest auto insurance rates for drivers under 25 will require even more work. Each insurance company uses a little different formula for determining rates in each state, so first we will examine the most affordable auto insurance companies in Baltimore.
Find Cheaper Car Insurance for Young Drivers
|Rank||Company||Cost Per Year|
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USAA normally has some of the most affordable car insurance rates in Baltimore at around $948 each year. This is $611 less than the average rate paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto also are some of the lowest-priced Baltimore, MD insurance companies.
As shown in the table above, if you are insured with Erie and switched to USAA, you may realize annual savings of in the vicinity of $213. Drivers with State Auto could save as much as $242 a year, and Amica customers might reduce prices by as much as $399 a year.
It’s important to note that these rates are averages for all insureds and vehicles and do not take into consideration a specific location for drivers under 25. So the auto insurance company that is most affordable for your situation may not even be in the list above. That helps illustrate why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.
Get discount Baltimore auto insurance
Car insurance companies that offer quotes for drivers under 25 may also provide premium discounts that could potentially reduce rates by 35% or more if you meet specific criteria. A few of the larger companies and some of the premium reductions they offer are shown below.
- American Family offers discounts including multi-vehicle, good student, bundled insurance, accident-free, Steer into Savings, and good driver.
- Farm Bureau offers discounts for multi-vehicle, youthful driver, driver training, renewal discount, good student, multi-policy, and 55 and retired.
- State Farm includes discounts for multiple policy, Steer Clear safe driver discount, student away at school, good driver, accident-free, and passive restraint.
- Travelers offers premium reductions for hybrid/electric vehicle, home ownership, continuous insurance, new car, multi-policy, multi-car, and save driver.
- The Hartford has discounts for defensive driver, vehicle fuel type, air bag, bundle, anti-theft, driver training, and good student.
- GEICO may have discounts that include driver training, anti-theft, emergency military deployment, seat belt use, federal employee, and daytime running lights.
- Progressive policyholders can earn discounts including continuous coverage, online signing, good student, multi-policy, homeowner, online quote discount, and multi-vehicle.
The chart below shows the difference between insurance premiums with and without discounts applied to the policy premium. The premiums assume a male driver, no driving violations, no at-fault accidents, Maryland state minimum liability limits, comprehensive and collision coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, paid-in-full, good student, anti-theft, continuous coverage, and paperless filing discounts applied. When discounts are applied, theaverage amount saved on auto insurance for drivers under 25 is 18% or $426.
Full coverage versus liability only rates
Buying cheaper auto insurance is the goal of most drivers, and a great way to reduce the cost of insurance for drivers under 25 is to only buy liability insurance. The illustration below illustrates the difference between premium costs with full coverage compared to only the Maryland minimum liability coverage. The rate quotes are based on a clean driving record, no at-fault accidents, $250 deductibles, single status, and no discounts are applied.
If we average the cost for all age groups, full coverage on your policy costs an extra $2,129 per year more than buying just liability insurance. That proposes the question if buying full coverage is a waste of money. There is no set guideline to eliminate physical damage insurance, but there is a general convention. If the yearly cost of full coverage is 10% or more of the settlement you would receive from your company, then it could be time to drop full coverage.
The benefits of price comparisons
Baltimore, MD auto insurance rates are calculated based on many things that can increase the policy price. Simply having a birthday, buying higher coverage limits, or getting a DUI can produce rate changes resulting in some companies being cheaper than competitors. Not only may things change on your end, but car insurance companies change premium rates as often as every three months to reflect underwriting profits or losses. A period of increased losses may cause additional premium costs, while lower claim expenses can result in cheaper Baltimore car insurance rates.
For example, the data below shows which companies have the cheapest car insurance in Baltimore, MD for a 35-year-old female driver with a clear driving record, no claims, and excellent credit. If we estimate prices based on her personal profile, USAA may offer the best car insurance rates in Baltimore at $1,653 each year. This is $94 more than the average rate paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto are the remainder of the top five cheapest Baltimore, MD auto insurance companies.
In the next rate comparison, we’ll give the driver from the above example a claim or two, less-than-perfect credit, and a few traffic violations. Since each auto insurer has a proprietary method for establishing rates, analyzing rate quotes will most likely result in a completely different list of the cheapest car insurance companies in Baltimore as shown below.
Travelers now has the best insurance rate in Baltimore with MetLife, GEICO, Nationwide, and Liberty Mutual now rounding out the top five. This example proves why drivers need to shop around to get affordable auto insurance quotes for drivers under 25. Prices are influenced by many different factors and can change without notice, so the cheapest option when you bought your policy may now be quite expensive.
How to find low-cost auto insurance for drivers under 25
The list below shows a few thrifty solutions that can help you buy more affordable car insurance.
- Lower rates by purchasing a safer vehicle
- Raise physical damage deductibles
- Do not pay for full coverage on older vehicles
- Prevent rate increases by staying accident-free
- Tickets and violations raise rates
- Better credit scores save money
- Shop around once a year for cheaper rates
That final tip is especially important, as was noted in this article. Prices vary greatly, so don’t be hesitant to buy a different policy if a cheaper price is available.
Many consumers stick with the same company and that’s fine, but it’s not a great idea if that devotion results in you overpaying hundreds of dollars year after year. Now is a great time to shop around and find cheaper insurance for drivers under 25 in Baltimore.
The agencies below are willing to provide answers to your questions and help you determine which is the best policy, as some people have coverage questions and would like to have some advice when shopping for the best coverage for drivers age 25 and younger. It can be challenging to find the best coverage on your own, and professional agents can provide you peace of mind knowing your coverage gives you adequate protection in the event of a claim.
To locate a Baltimore insurance agent using an interactive map, click the link at the bottom.
- Rich Garcia State Farm Insurance Agency
9526 Belair Rd – Baltimore, MD 21236 – (410) 248-3276
- Allstate Insurance: Donald White
733 W 40th St #311 – Baltimore, MD 21211 – (410) 467-9600
- Concrete Insurance
6405 Belair Rd – Baltimore, MD 21206 – (410) 433-0313