I’m sure you’ve seen the catchy commercials from companies like Farmers and State Farm guaranteeing the cheapest rates, so drivers should just pick the one with the catchiest commercial, right?
Regrettably, it’s not quite that easy, as there are a whole slew of unknown aspects such as your credit score, whether you are married or single, and if you want full coverage included, that all impact the cost of coverage. This article will cover the causes of high insurance rates and should give you some help in finding cheaper rates.
The make and model of vehicle you are insuring is probably the most important factor when comparing quotes for the best coverage for good students. Vehicles with lots of horsepower, poor passenger safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than more economical and safe models. The list below illustrates coverage prices for the most cost-effective vehicles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$8,028|
|Hyundai Elantra GLS Touring Station Wagon||$8,038|
|Honda CR-V EX 4WD||$8,117|
|Honda Accord EX-L 4-Dr Sedan||$8,661|
|Ford F-150 XLT Regular Cab 2WD||$8,899|
|Ford Edge SE 2WD||$8,909|
|Ford Explorer XLT AWD||$8,988|
|Ford Focus SE 4-Dr Sedan||$9,443|
|Chevrolet Malibu LS||$9,532|
|Nissan Altima 2.5 4-Dr Sedan||$9,541|
|Dodge Grand Caravan Hero||$9,532|
|Chevrolet Impala LT||$9,541|
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Premium data assumes single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in specific zip code location which can impact rates considerably.
Looking at the data, we can infer that models like the Ford Escape, Hyundai Elantra, and Honda CR-V are a few of the most economical vehicles to insure for student drivers.
One of the more important considerations that are used to help calculate the amount you pay each year for auto insurance is the neighborhood you call home. Areas with high crime rates or more dense population are more likely to have higher rates, whereas areas with lower crime rates and fewer weather claims have the luxury of lower rates.
The following table lists the most expensive cities in Maryland for good students to purchase a policy in. Baltimore makes the list at #1 with an annual cost of $1,796 for coverage, which is about $150 monthly.
|23||Bel Air South||$1,174|
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Rate quotes are approximated as the garaging address in Baltimore can revise rates substantially.
Selecting the highest-rated insurer can be difficult considering how many companies sell insurance in Maryland. The company rank data in the next section can help you pick which auto insurance companies to look at comparing rate quotes with. These rankings are only made up of companies with a national presence, so companies that focus mainly on Maryland business will not be included in the list.
Top 10 Large Auto Insurers in Baltimore Ranked by Value
- American Family
- AAA Insurance
- Safeco Insurance
- The Hartford
- The General
- 21st Century
- Titan Insurance
Top 10 Large Auto Insurers in Baltimore Ranked by Claims Service
- State Farm
- Liberty Mutual
- American Family
- Titan Insurance
- AAA Insurance
Does full coverage make sense?
Buying cheaper car insurance should be important to the majority of vehicle owners, and a great way to buy cheaper insurance for good students is to only buy liability insurance. The example below shows the comparison of car insurance rates with liability coverage only compared to full coverage. The information is based on no driving violations, no at-fault accidents, $500 deductibles, marital status is single, and no policy discounts are applied.
As an overall average, comprehensive and collision coverage on your policy costs $2,092 per year more than just insuring for liability. That is a large expense and it proposes the question when is the right time to remove full coverage. There isn’t a written rule of when to stop paying for comprehensive and collision coverage on your policy, but there is a general school of thought. If the yearly cost of comp and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it might be time to consider dropping full coverage.
For example, let’s assume your vehicle’s replacement cost is $9,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, you would only receive $8,000 after paying the physical damage deductible. If it’s costing in excess of $800 a year for physical damage coverage, then it may be the right time to buy liability only.
There are a few cases where dropping physical damage coverage is not financially feasible. If you have an outstanding loan on your vehicle, you have to carry full coverage to protect the lienholder’s interest in the vehicle. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should not consider dropping full coverage.
Here’s why you should shop around
Maryland car insurance rates are based on many factors which can significantly increase or decrease the price of coverage. Getting older, buying higher coverage limits, or getting a ticket for running a stop sign may prompt premium changes that may make certain companies cheaper than before. In addition, auto insurance companies file new Maryland car insurance rates as often as every quarter as an adjustment for underwriting gains or losses. Higher than normal claims can result in rate increases, while lower claims may produce lower-priced Baltimore car insurance rates.
To illustrate this point, the graph below compares the cheapest car insurance in Baltimore, MD for a 40-year-old male driver with no prior accidents, a clean driving record, and a decent credit rating. If we look at prices based on his personal profile, USAA may offer the best car insurance rates in Baltimore at $1,703 per year. This is $144 more than the average premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto are the remaining most affordable Baltimore, MD auto insurance companies.
Now we will give the driver from the first set of rates some claims, a lower credit score, and a few blemishes on his driving record. Due to the fact that each insurance company has their own process for setting rates, getting updated rate quotes may now result in a significantly different list of affordable companies as shown below.
MetLife now has the lowest car insurance rate in Baltimore with Travelers, Nationwide, GEICO, and Liberty Mutual also being competitive. This example illustrates why it is important to compare lots of rates to find the most economical auto insurance rates for good students. Prices consist of many factors and change substantially, so the most economical option six months ago may now be priced much higher than other options.
How to find cheaper car insurance for good students
Below you’ll find some of the recommended penny-pinching ideas that can help drivers get low-cost auto insurance.
- Claim-free policyholders usually earn a discount
- Home or renters coverage can save on auto insurance
- Buy a vehicle with excellent safety ratings
- Maintain a safe distance and avoid accidents
- Serious violations like DUI or careless driving can make car insurance unaffordable
- Keep rates low by shopping around frequently
The last idea is highly valuable, as was affirmed in the prior information. Coverage prices fluctuate constantly, so don’t be afraid to switch carriers if a lower-cost policy is available.
Brand loyalty is great, but is isn’t recommended if that loyalty results in overpaying thousands of dollars over the life of your policy. If you have a few minutes, now is a great time to compare prices to find cheaper insurance for good students in Baltimore.
If you would rather have some advice when shopping around for cheaper insurance for good students, the agencies below can probably aid you in deciding which policy is best. To find an auto insurance agency closest to you, click the button at the bottom or click here to get price quotes now.
Nationwide Insurance: Frank Dippel Agency Inc
6600 York Rd Ste 207 – Baltimore, MD 21212 – (410) 435-4354
Nationwide Insurance: Rodgers Insurance Agency Inc
6800 Holabird Ave a – Baltimore, MD 21222 – (410) 282-1379
Rich Garcia State Farm Insurance Agency
9526 Belair Rd – Baltimore, MD 21236 – (410) 248-3276
Nationwide Insurance: Luray and Associates Inc
1726 Reisterstown Rd #220 – Baltimore, MD 21208 – (410) 602-2636