I’m sure you’ve seen the catchy advertisements from companies like Liberty Mutual and Progressive that make claims of huge savings, so drivers just need to choose the one with the best commercial, right?
That is not the case, however, as there are a lot of unknown elements such as the area where you live, your annual mileage driven, and whether you are male or female. In this article, we will teach you about some of these things and will hopefully give the reader a good start in finding the cheapest insurance in Baltimore.
Comparing rates for low-cost insurance is not always easy, and deciding which company quotes the cheapest car insurance rates for 20 year old guys calls for a bit more work. Every auto insurer uses their own method to set premium rates, so let’s begin by examining the car insurance companies with the overall cheapest rates in Baltimore.
It’s important to know that Maryland car insurance rates are determined by lots of factors that will increase or decrease your annual premium. Turning one year older, buying higher coverage limits, or getting a ticket for careless driving may generate price changes that can cause some rates to be more expensive than others.
Cheapest Insurance Rates for Men Age 20
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $958 |
| 2 | Liberty Mutual | $1,125 |
| 3 | Penn National | $1,126 |
| 4 | Erie | $1,149 |
| 5 | State Auto | $1,178 |
| 6 | Amica | $1,308 |
| 7 | MetLife | $1,414 |
| 8 | Travelers | $1,426 |
| 9 | GEICO | $1,428 |
| 10 | Nationwide | $1,435 |
| 11 | California Casualty | $1,544 |
| 12 | Allstate | $1,613 |
| 13 | State Farm | $1,630 |
| 14 | Progressive | $2,065 |
| 15 | Encompass | $2,592 |
| 16 | Victoria | $3,023 |
| Quote Your Rates Go | ||
USAA may have some of the most affordable car insurance rates in Baltimore at around $958 per year. This is $601 less than the average policy premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto also rank well as some of the cheaper Baltimore, MD insurance companies.
As the rates illustrate above, if you are a customer of State Auto and switched to Liberty Mutual, you might achieve an annual premium reduction of in the neighborhood of $53. Insureds with Amica could save as much as $183 a year, and MetLife customers might cut rates by $289 a year.
If you want to find out if you’re overpaying, click here to get quotes or visit any of the companies below.
These premiums are averages across all ages of drivers and types of vehicles and do not take into consideration an exact location for 20 year old guys. So the company that has the cheapest rates for you may not even be in the top 16 companies in the list above. That points out the importance of why you need to quote rates from many companies using your own personal information and vehicle type.
One of the more important factors that are looked at to determine the amount you pay for auto insurance is your zip code. Cities with larger populations will most likely have higher rates, whereas areas with less crime or weather claims have the luxury of lower rates.
The next table shows the most costly cities in Maryland for 20 year old guys to purchase auto insurance in. Baltimore makes the list at #1 with the annual price of $1,796 for coverage, which is approximately $150 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Baltimore | $1,796 |
| 2 | Woodlawn | $1,657 |
| 3 | Dundalk | $1,490 |
| 4 | Silver Spring | $1,475 |
| 5 | Towson | $1,467 |
| 6 | Bowie | $1,446 |
| 7 | Waldorf | $1,431 |
| 8 | Essex | $1,431 |
| 9 | Aspen Hill | $1,420 |
| 10 | Catonsville | $1,417 |
| 11 | Wheaton | $1,375 |
| 12 | Glen Burnie | $1,329 |
| 13 | Severn | $1,327 |
| 14 | Gaithersburg | $1,317 |
| 15 | Rockville | $1,290 |
| 16 | Germantown | $1,275 |
| 17 | Ellicott City | $1,271 |
| 18 | Columbia | $1,263 |
| 19 | Potomac | $1,261 |
| 20 | Annapolis | $1,255 |
| Find the Best Rates Go | ||
Prices are approximated as the garaging address in Baltimore can alter auto insurance rates significantly.
Do you need full coverage?
Reducing premiums for car insurance is important to most vehicle owners, and a great way to pay less for insurance for 20 year old guys is to only buy liability insurance. The illustration below illustrates the difference between insurance prices with full coverage compared to only the Maryland minimum liability coverage. The rates are based on no claims or violations, $250 deductibles, marital status is single, and no policy discounts are applied.
Averaged for all ages 20 through 70, comprehensive and collision coverage on your policy costs an additional $2,129 per year over and above liability only. That touches on the question if paying for full coverage is a waste of money. There is no exact formula of when to drop full coverage, but there is a guideline you can use. If the yearly cost of full coverage is 10% or more of the settlement you would receive from your company, then it may be the right time to buy liability only.
For example, let’s assume your vehicle’s book value is $4,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, you would only receive $3,500 after the deductible is paid. If it’s costing in excess of $350 a year for physical damage coverage, then you might want to think about dropping full coverage.
Discounts on Baltimore auto insurance rates
Insurance companies that sell policies for 20 year old guys may have policy discounts that could lower prices by as much as 30% if you meet certain criteria. Larger car insurance companies and the discounts they provide include:
- AAA may have discounts that include good driver, anti-theft, good student, education and occupation, AAA membership discount, and multi-car.
- Progressive includes discounts for online quote discount, multi-policy, multi-vehicle, continuous coverage, and good student.
- State Farm offers discounts for good driver, good student, student away at school, Drive Safe & Save, safe vehicle, and driver’s education.
- Esurance has savings for online shopper, good student, safety device, paid-in-full, and claim free.
- Nationwide policyholders can earn discounts including good student, anti-theft, business or organization, Farm Bureau membership, and family plan.
The diagram below compares car insurance rates with and without discounts applied. Data assumes a male driver, no accidents or driving violations, Maryland state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with vehicle safety, passive restraint, paid-in-full, paperless filing, continuous coverage, and anti-theft discounts applied. In this example, theaverage amount saved on car insurance for 20 year old guys is 18% or $426.
What aren’t you shopping around?
Baltimore car insurance rates are influenced by many factors which can substantially decrease or increase the cost of a policy. Simply turning a year older, buying a different vehicle, or getting caught speeding can cause premium changes that can make some companies cheaper than before.
In addition, auto insurance companies change rates as often as every three months in order to maintain liquidity for claims. Higher than normal claims can result in higher prices, while less frequent claims may result in cheaper Baltimore car insurance rates.
The chart below shows which company has the cheapest car insurance in Baltimore, MD for a 45-year-old female driver with no prior claims, no tickets, and good credit. If we look at prices based on her current situation, USAA has the most affordable car insurance rates in Baltimore at $1,669 each year. This is $110 more than the average policy premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto are also included in the cheapest Baltimore, MD auto insurance companies.
The example below compares rates after we give the driver in the first example a claim, a lower credit rating, and a stop sign violation. Because every insurance company has their own process to determining premium rates, comparing insurance quotes most likely will result in a different set of the cheapest companies as shown below.
MetLife now has the lowest price on auto insurance in Baltimore with Nationwide, Travelers, GEICO, and California Casualty now being in the top five. This example proves why Maryland drivers need to compare lots of rates when trying to get the most affordable insurance rates for 20 year old guys.
Prices can be altered by many different factors and can decrease or increase without notice, so the best company a year ago may now be wasting a lot of money.