You have most likely watched the ads from insurers like GEICO and Liberty Mutual that claim dirt cheap rates. So you should just choose the one with the best commercial, right?
Unfortunately, it’s just not that easy, as there are many unknowns such as the vehicle you are insuring, what coverage limits you need, and if you have a spouse, that all have an effect on the price of a policy. We will attempt to cover some of these things and will hopefully give you some help in finding cheaper rates.
For poor drivers, one of the big things that are looked at to determine auto insurance rates is your zip code in Baltimore. Regions with larger populations or more claims likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the enjoyment of a little cheaper coverage.
The next table ranks the most expensive areas in Maryland for low income drivers to purchase auto insurance in. Baltimore is ranked #1 with a yearly cost of $1,760 for the average policy, which is around $147 each month.
|Rank||City||Premium Per Year|
|22||Bel Air South||$1,210|
|Find Cheaper Insurance Go|
Annual rates are approximated as zip code location can revise coverage rates noticeably.
The make and model of vehicle that needs insurance is a large consideration in finding low-cost auto insurance for low income drivers. Vehicles with economical engines, modern passenger safety features, or low incidents of liability claims will cost less to insure than fast, unsafe models. The table below illustrates car insurance costs for a handful of the most budget-friendly automobiles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Honda Accord EX-L 4-Dr Sedan||$2,755|
|Honda CR-V LX 4WD||$2,776|
|Honda Odyssey EX||$2,949|
|Chevrolet Equinox LT 2WD||$3,006|
|Dodge Grand Caravan Hero||$3,012|
|Ford Escape Limited 4WD||$3,024|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$3,154|
|Ford Edge SE 2WD||$3,161|
|Toyota Corolla LE||$3,168|
|Chevrolet Impala LTZ||$3,174|
|Chevrolet Silverado 2500HD LT Crew Cab 4WD||$3,225|
|Volkswagen Jetta 2.0T 4-Dr Sedan||$3,234|
|Nissan Altima 3.5 SR 4-Dr Sedan||$3,225|
|Chevrolet Malibu LTZ||$3,235|
|Ford F-150 STX Regular Cab 4WD||$3,229|
|Ford Fusion S 4-Dr Sedan||$3,290|
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Data rating is based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include multi-policy, safe-driver, claim-free, multi-vehicle, and homeowner. Rate quotes do not factor in garaging location in Baltimore, MD which can affect rates substantially.
Looking at the rates, we can conclude that models like the Honda Accord, Honda CR-V, Honda Odyssey, and Chevrolet Equinox should be a few of the most affordable vehicles to insure for poor drivers.
Should you buy full coverage?
Paying less for auto insurance is probably important to most vehicle owners, and an effective way to buy cheap insurance for low income drivers is to not buy full coverage. The illustration below shows the difference between insurance costs with full physical damage coverage compared to only buying liability only. The premiums are based on no accidents or driving violations, $100 deductibles, marital status is single, and no discounts are taken into consideration.
If averaged out across all ages, full coverage costs $3,113 per year over and above liability coverage. At some point, about every driver wonders if physical damage coverage is worth the money. There is no clear-cut rule to eliminate physical damage insurance, but there is a general convention. If the yearly cost of comp and collision coverage is about 10% or more of the settlement you would receive from your company, the it may be a good time to stop paying for full coverage.
For example, let’s assume your vehicle’s book value is $11,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, you would only receive $10,000 after paying the physical damage deductible. If you are paying over $1,000 a year for physical damage coverage, then it’s probably a good time to buy liability coverage only.
Discounts on Baltimore car insurance
Insurance providers that offer quotes for low income drivers may additionally offer premium discounts that could reduce prices by 40% or more if you meet specific eligibility requirements. Larger auto insurance companies and some of their more popular discounts can be found below.
- GEICO discounts include multi-policy, membership and employees, daytime running lights, anti-theft, military active duty, federal employee, and five-year accident-free.
- Mercury Insurance may include discounts for anti-theft, good student, good driver, ease of repair, and location of vehicle.
- Farmers Insurance includes discounts for multi-car, mature driver, youthful driver, distant student, teen driver, and good student.
- Auto-Owners Insurance offers premium reductions for teen driver, multi-policy, multiple vehicles, good student, paperless, and anti-theft.
- Liberty Mutual offers discounts for teen driver discount, new move discount, preferred payment discount, newly retired, safety features, and new graduate.
- SAFECO policyholders can earn discounts including multi-car, teen safe driver, bundle discounts, anti-lock brakes, and accident prevention training.
- Progressive may offer discounts for multi-vehicle, multi-policy, online quote discount, continuous coverage, good student, and online signing.
- USAA has discounts for new vehicle, annual mileage, driver training, multi-vehicle, vehicle storage, and defensive driver.
The information below compares yearly insurance costs with and without policy discounts. The data is based on a male driver, no violations or accidents, Maryland state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with passive restraint, multiple policy, multiple vehicle, defensive driving course, marriage, and homeowner discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on auto insurance for low income drivers is 28% or $638.
Buying coverage from a high-quality company is hard considering how many companies there are in Maryland. The company rank data shown next could help you select which coverage providers you want to consider purchasing coverage from.
The ratings below are only made up of the largest companies in the United States, so smaller companies are not factored into the list. To compare price quotes from many more Maryland auto insurance companies, simply click here.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
|Compare Rates Now Go|
Data Source: Insure.com Best Car Insurance Companies
If you like to have some professional guidance when comparing insurance rates for low income drivers, the agencies below are willing to help you make a decision which coverages are best.
To locate a Baltimore auto insurance agent close to where you live, click the button at the bottom of the list.
David Rosario – State Farm Insurance Agent
3121 Eastern Ave – Baltimore, MD 21224 – (410) 850-4949
Bob Duda – State Farm Insurance Agent
7939 Honeygo Blvd #105 – Baltimore, MD 21236 – (410) 529-2523
State Farm: Scott Garvey
3818 Roland Ave – Baltimore, MD 21211 – (410) 889-5840
Allstate Insurance: Kent Schwab
401 Jefferson Ave – Towson, MD 21286 – (410) 433-4700