The type of vehicle you are buying coverage for is one of the largest considerations when consumers are trying to find cheaper auto insurance for young drivers. Vehicles with high performance features, poor crash test ratings, or a high likelihood of having liability claims will cost more to insure than more modest models. The next list outlines insurance rates for a handful of the more affordable vehicles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$8,879|
|Honda CR-V EX 4WD||$8,967|
|Honda Accord EX-L 4-Dr Sedan||$9,526|
|Jeep Wrangler Sahara 4WD 2-Dr||$9,970|
|Volkswagen Jetta SE 2.5 Station Wagon||$10,178|
|Ford Edge SEL 2WD||$10,441|
|Chevrolet Impala LS||$10,450|
|Toyota Tacoma 2WD||$10,441|
|Chevrolet Equinox LS AWD||$10,529|
|Toyota RAV4 Limited 2WD||$10,539|
|Dodge Grand Caravan Hero||$10,529|
|Nissan Altima 2.5 4-Dr Sedan||$10,535|
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Premium data assumes single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in the specific area where the vehicle is garaged which can modify coverage rates substantially.
Based on these rates, we can expect makes and models like the Ford Escape, Honda CR-V, and Honda Accord are going to be the more affordable vehicles to insure for youthful drivers. Prices will tend to be higher just due to the fact that there is a higher risk for young drivers, but generally speaking those particular models will most likely have the least expensive rates possible.
Shopping around for affordable insurance is challenging, and deciding which companies offer the cheapest auto insurance rates for young drivers will require a bit more work. Every auto insurer uses a different method for setting prices, so let’s begin by taking a look at the auto insurance companies with the overall cheapest rates in Baltimore, MD.
It’s important to understand that Baltimore, MD auto insurance rates are impacted by many things that can increase the price you pay. Things like getting older, marrying your spouse, or getting a driving violation can cause premium changes that can cause some rates to be more affordable than others.
Best Cheap Insurance Rates for Teens
USAA offers some of the most affordable car insurance rates in Baltimore at around $930 a year. This is $629 less than the average premium paid by Maryland drivers of $1,559. Liberty Mutual, Erie, Penn National, and State Auto also are some of the cheaper Baltimore, MD insurance companies.
As shown in the table above, if you are a customer of Penn National and switched to Liberty Mutual, you may realize savings of approximately $34. Customers with State Auto could save as much as $134 a year, and Amica customers might cut rates by $203 a year.
Bear in mind that those premiums are averaged for all drivers and vehicles in Maryland and do not factor in a specific zip code for young drivers. So the car insurance company that can offer you the lowest price may not even be in the list above. That illustrates why you need to compare prices as often as possible using your own specific driver information and vehicle.
One of the many criteria that are looked at to determine the cost of insurance is where you live in Baltimore. Cities with more crime and/or more people will most likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates tend to receive cheaper rates.
The illustration below rates the priciest cities in Maryland for young drivers to purchase a policy in. Baltimore shows up at #1 with an annual premium of $1,814 for the average insured, which is about $151 per month.
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Rate information is estimated as the specific garaging location can revise prices substantially.
Get discounts on Baltimore insurance
Insurance providers that provide policies for young drivers may also give you rate discounts that may potentially lower prices by as much as 40% or more if you are eligible to receive them. Companies and their possible discounts can be found below.
- American Family offers discounts including early bird, good student, defensive driver, Steer into Savings, accident-free, and bundled insurance.
- Nationwide may include discounts for easy pay, accident-free, family plan, good student, and anti-theft.
- MetLife has savings for good student, multi-policy, accident-free, good driver, claim-free, defensive driver
- 21st Century includes discounts for defensive driver, teen driver, theft prevention, student driver, anti-lock brakes, and automatic seat belts.
- Farmers Insurance policyholders can earn discounts including mature driver, good student, bundle discounts, teen driver, and switch companies.
- Allstate offers discounts for premier plus, new car, anti-lock brakes, early signing, EZ pay plan discount, auto/life discount, and eSmart discount.
The chart below shows the difference between premium costs with and without some available policy discounts. The rates are based on a male driver, no tickets, no at-fault accidents, Maryland state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with paperless filing, good student, passive restraint, paid-in-full, continuous coverage, and anti-theft discounts applied. When these discounts are applied to the policy premium, theaverage amount saved on auto insurance for young drivers is 28% or $612.
Full coverage rates compared to liability only
Saving on auto insurance is the goal of most drivers, and one of the best ways to reduce the cost of insurance for young drivers is to not buy comprehensive and collision coverage. The chart below illustrates the comparison of auto insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on no claims or violations, $1,000 deductibles, drivers are single, and no discounts are applied.
As an overall average, comp and collision coverage costs $1,702 per year more than carrying just liability coverage. That proposes the question if buying full coverage is worth the money. There is no clear-cut formula to stop paying for comprehensive and collision coverage on your policy, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let’s assume your vehicle’s settlement value is $8,500 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most you would receive is $7,500 after the deductible is paid. If you are paying more than $750 annually to have full coverage, then it could be time to drop full coverage.
There are some scenarios where removing full coverage is not financially feasible. If you still owe a portion of the original loan, you have to carry full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not eliminate full coverage.
Ideas to find low-cost car insurance for young drivers
Lowering your rates is not difficult, and here are some penny-pinching solutions that can help Baltimore drivers find cheaper car insurance.
- Improve your credit rating
- At-fault accidents will increase rates
- Drop full coverage on older vehicles
- Insure your home and auto with the same company
- Vehicles with safetly features generally cost less to insure
- Compare prices as often as possible
That last idea is extremely critical, as we discussed in the article above. Car insurance rates in Baltimore change a lot, so drivers shouldn’t be resistant to buy from a different company if a cheaper rate is available.
Many drivers tend to have loyalty to a certain company, but it isn’t a good idea if that devotion results in you overpaying a considerable chunk of change every month. Take a couple minutes and compare prices to find cheaper auto insurance for young drivers.
If you would rather have some professional guidance when comparing insurance rates for youthful drivers, the agents below can help you determine which auto insurance policy would work best for you.
To locate an agency closest to you, click the link at the bottom.
- Natasha Parker – State Farm Insurance Agent
617 Stemmers Run Rd, Ste AA – Baltimore, MD 21221 – (410) 238-0071
- Hill Point Insurance LLC
1400 S Charles St – Baltimore, MD 21230 – (410) 779-9272
- Senate Select Insurance
5417 Reisterstown Rd – Baltimore, MD 21215 – (410) 358-0411
- Allstate Insurance Agency: Abernathy Michael
7696 Belair Rd – Baltimore, MD 21236 – (410) 426-5500