What Insurance is Cheapest for Teenagers in Baltimore?

The words “economical” and “auto insurance” really don’t belong together, in particular when you are shopping around for the best insurance rates for teenagers. Because of the high cost, let’s familiarize you with a few of the factors the can have a considerable influence on car insurance rates, and come up with some ideas to take a little off your next policy.

One of the many considerations that aid in calculating car insurance rates is where you choose to live. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with less people or fewer weather incidents benefit from having to pay less for coverage.

The illustration below ranks the priciest cities in Maryland for teenagers to buy car insurance in. Baltimore shows up at #1 with the yearly price of $1,742 for the average policy, which is approximately $145 each month.

How much is auto insurance in Baltimore, MD?
Rank City Premium Per Year
1 Baltimore $1,742
2 Woodlawn $1,674
3 Dundalk $1,535
4 Towson $1,527
5 Essex $1,474
6 Catonsville $1,460
7 Silver Spring $1,460
8 Aspen Hill $1,420
9 Waldorf $1,417
10 Bowie $1,390
11 Glen Burnie $1,342
12 Wheaton $1,321
13 Severn $1,314
14 Rockville $1,303
15 Gaithersburg $1,278
16 Columbia $1,275
17 Potomac $1,274
18 Annapolis $1,268
19 Germantown $1,249
20 Ellicott City $1,233
21 North Bethesda $1,206
22 Bethesda $1,202
23 Bel Air South $1,174
24 Frederick $1,044
25 Hagerstown $990
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Rate quotes are approximated as specific location information can alter premium rates greatly.

Figuring out which companies have the best auto insurance rates for teenagers calls for a little more effort than just comparing a company or two.

Each auto insurance company has their own guidelines to establish rates, so let’s examine the most competitive auto insurance companies in Maryland. It’s a good idea to know that Maryland auto insurance rates are based on many factors that will increase or decrease the cost of coverage. Simply turning a year older, buying a different vehicle, or having an at-fault accident can trigger rate changes resulting in some rates now being much cheaper than others.

Cheap Insurance Rates for Teens

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Maryland car insurance ranked by cost per year
Rank Company Cost Per Year
1 USAA $948
2 Penn National $1,104
3 Liberty Mutual $1,114
4 Erie $1,161
5 State Auto $1,190
6 Amica $1,308
7 MetLife $1,386
8 Travelers $1,398
9 Nationwide $1,435
10 GEICO $1,442
11 California Casualty $1,544
12 Allstate $1,645
13 State Farm $1,680
14 Progressive $2,128
15 Encompass $2,516
16 Victoria $3,023
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USAA normally has some of the cheapest car insurance rates in Baltimore at around $948 each year. Penn National, Liberty Mutual, Erie, and State Auto are also some of the best Baltimore, MD car insurance companies.

As depicted above, if you are currently insured with Erie and switched to USAA, you may see a yearly price reduction of upwards of $213. Insureds with State Auto might save as much as $242 a year, and Amica policyholders might reduce prices by as much as $360 a year.

Bear in mind that those premium estimates are averaged for all drivers and vehicles and and are not figured with a specific vehicle garaging location for teenagers. So the auto insurance company that is best suited for you may not even be in the top 16 companies shown above. That illustrates why you need to compare rates from multiple companies using your own specific driver information and vehicle.

The car, truck, or SUV that needs insurance is one of the primary factors when shopping around for the most affordable coverage for teenagers. Vehicles with economical engines, a plethora of safety features, or a track record of few liability claims will cost less to insure than higher performance models. The next table showcases coverage prices for some of the most budget-friendly automobiles to insure in Maryland.

Cheapest Vehicles to Insure in Baltimore, MD
Vehicle Insured Estimated Cost for Full Coverage
Honda Accord LX 4-Dr Sedan $10,508
Ford Escape XLT 2WD $10,517
Honda CR-V EX 4WD $10,605
Ford F-150 XL Regular Cab 2WD $11,077
Hyundai Elantra SE Touring Station Wagon $11,247
Toyota Prius $11,348
Chevrolet Silverado LS Regular Cab 4WD $11,719
Dodge Grand Caravan SE $11,817
Volkswagen Jetta SE 2.5 Station Wagon $11,994
Ford Focus S 4-Dr Sedan $12,362
Ford Edge SE AWD $12,367
Toyota Camry LE $12,459
Chevrolet Impala LT $12,465
Chevrolet Malibu LS $12,459
Toyota RAV4 Sport 4WD $12,469
Toyota Tacoma Double Cab TRD Sport Package 4WD $12,560
Ford Explorer Eddie Bauer AWD $12,565
Honda Odyssey EX-L W/Rear Entertainment $13,105
Jeep Wrangler Unlimited Sahara 2WD 4-Dr $13,191
GMC Sierra 2500HD SLE Extended Cab 4WD $13,205
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Table data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in vehicle garaging location which can lower or raise premium rates significantly.

Looking at the rates, you can presume that vehicles like the Honda Accord, Ford Escape, and Honda CR-V should be the most budget-friendly vehicles to insure for teen drivers. The cost of auto insurance will tend to be more expensive anyway just because there is more risk for teenagers, but generally speaking those particular models will most likely have the lowest prices compared to all other vehicles.

Difference between liability only and full coverage rates

Reducing premiums for auto insurance should be important to most vehicle owners, and one common way to find cheap insurance for teenagers is to only buy liability insurance. The diagram below illustrates the difference between insurance costs with full physical damage coverage compared to only buying liability only. The data assumes no claims or driving citations, $250 deductibles, single status, and no policy discounts are applied.

As an average for all age groups, comprehensive and collision coverage on your policy costs an extra $2,353 per year over and above liability coverage. That touches on the question if paying for full coverage is a waste of money. There is no exact rule to exclude physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of having full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.

Get discount Baltimore car insurance rates

Cheaper Baltimore, MD auto insurance for teen driversInsurance providers that provide policies for teenagers may also give you special discounts that can reduce rates by 40% or more if you are eligible to receive them. A few of the larger companies and some of the discounts are included below.

The diagram below illustrates the difference between insurance costs with and without discounts applied to the policy premium. The prices are based on a male driver, no claims or driving violations, Maryland state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.

The first bar for each age group shows premium with no discounts. The second bar shows the rates with good student, paperless filing, passive restraint, vehicle safety, paid-in-full, and anti-theft discounts applied. When drivers take advantage of discounts, the average amount saved each year on auto insurance for teenagers is 28% or $844.

Why you should shop around

Baltimore auto insurance rates are based on many factors which can substantially change the price you pay for coverage. Simply having a birthday, increasing deductibles, or getting caught speeding may prompt premium changes that may make certain companies cheaper than before. Not only that, but insurance companies modify pricing without warning to ensure their profitability. Heavier than normal losses can cause price increases, while a lower level of claims can result in lower-priced Baltimore car insurance rates.

As an example, the chart below shows which company has the cheapest car insurance in Baltimore, MD for a 45-year-old female driver with a clear driving record, no claims, and a high credit rating. If we look at prices based on her current risk factors, USAA might quote the cheapest car insurance rates in Baltimore at $1,646 annually. This is $87 more than the average premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto are the remainder of the cheapest Baltimore, MD auto insurance companies.

Let’s now give the driver from the first set of rates a claim, a lower credit rating, and a few traffic violations. Due to the fact that every insurance company has a different formula for determining rates, comparing rates could result in a completely different list of the cheapest Baltimore car insurance companies as shown below.

MetLife now has the cheapest car insurance in Baltimore with Nationwide, Travelers, GEICO, and California Casualty completing the list. This example illustrates why consumers need to take the time to spend some time comparing rates to find the best insurance quotes for teenagers.

Insurance prices are impacted by many different factors and can decrease or increase without notice, so the cheapest option the last time you shopped your coverage around may now be an over-priced policy.

How to find economical insurance for teenagers

Here are many money-saving suggestions that can help you buy lower-cost coverage.

That last idea is very vital, as we stressed in the article above. Auto insurance prices vary greatly, so don’t be unwilling to buy from a different company if a more affordable price is available.

Having a favorite company is fine, but we do not recommend it if that faithfulness ends up costing you lots of money. It only takes a couple minutes to compare rates to find cheaper auto insurance for teenagers in Baltimore.

The agents below can probably help you determine which policy fits your needs best, since some drivers have questions and prefer to get some professional input when comparing insurance rates for teen drivers. It can be challenging to find the best policy on your own, and a professional agent can bring satisfaction knowing you have adequate protection in the event of a claim. To find an agent near you, click the button below the list or click here to compare prices now.

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