Who Has the Cheapest Car Insurance for Young Drivers in Maryland?

This would be a real easy article to write if we could tell you the one auto insurance company that is cheapest in Maryland. That is not the case, however, as there are a whole bunch of unknown aspects like what level of deductibles you need, if you have a coverage lapse, and the amount of liability coverage you want. The information below will cover the best ways to save money and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance in Maryland.

When buying car insurance for youthful drivers, one of the key things that is looked at to help calculate the amount you pay for auto insurance is the neighborhood you call home in Maryland. Areas with more people or higher crime rates like Baltimore, Towson, and Silver Spring will most likely have higher rates, whereas areas with less crime or weather claims have the benefit of cheaper auto insurance prices.

The table below lists the higher priced cities in Maryland for young drivers to buy auto insurance in.

Premium costs are comparative as zip code location can impact coverage rates substantially.

The vehicle that needs insurance is one of the largest factors when comparison shopping for cheap auto insurance for young drivers. Vehicles with average performance, advanced safety features, or a low likelihood of having liability claims will cost much less to insure than high performance models. The next list shows car insurance premiums for a number of the most cost-effective vehicles to buy coverage for.

Data rating is based on single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Maryland minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in specific garaging location which can impact premium rates considerably.

Based on these rates, we can tell that cars like the Hyundai Elantra, Honda CR-V, and Ford Escape are likely to be a few of the less-costly vehicles to insure for youthful drivers. The cost of a car insurance policy will trend higher just due to the fact that there is a higher risk for young drivers, but in general those particular models will have the lowest insurance prices possible.

Establishing which insurers offer the lowest-priced car insurance rates for young drivers requires a little more sweat in order to find coverage that fits your buget. Every auto insurer has a unique approach for setting prices, so we need to take a look at the car insurance companies with the overall best prices in Maryland.

Find Cheaper Car Insurance for Teens

Get a Free Quote and Save

USAA offers some of the most affordable car insurance rates in Maryland at around $948 annually. Liberty Mutual, Penn National, Erie, and State Auto also rank well as some of the more affordable Maryland auto insurance companies.

As shown in the rates above, if you are a policyholder with Liberty Mutual and switched to USAA, you may realize yearly savings of approxmiately $144. Customers with Penn National may save as much as $145 a year, and Erie insureds might see rate reductions of $201 a year.

It’s important to note that these estimates are averages for all drivers and vehicles and are not factoring in a rate surcharge for young drivers. So the company that can offer you the best rate may not even be in the company chart above. That is why you need to compare prices as often as possible using your own personalized driver profile and vehicle information.

Rate comparison of full coverage and liability-only

Finding the cheapest car insurance for young drivers in Maryland is probably important to the majority of drivers, and a great way to pay less for insurance is to not insure for full coverage. The diagram below illustrates the comparison of insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Maryland. The data assumes no violations or accidents, $100 deductibles, marital status is single, and no discounts are factored in.

If averaged out across all ages, physical damage coverage on your policy costs an additional $3,113 per year over and above liability only. That is a large expense and it proposes the question if buying full coverage is a waste of money. There is no specific rule of when to exclude full coverage on your policy, but there is a broad guideline. If the yearly cost of full coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might want to think about dropping full coverage.

For example, let’s assume your vehicle’s replacement cost is $7,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $6,500 after the policy deductible has been paid. If premium cost is more than $650 a year for physical damage coverage, then you might want to consider buying only liability coverage.

There are some conditions where eliminating full coverage is not recommended. If you haven’t paid off your loan, you have to keep full coverage as part of the loan requirements. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should not remove full coverage.

Progressive, Geico, State Farm, and Allstate compared

If you are looking for the best car insurance for youthful drivers in Maryland, four companies you’ll want quotes from are Progressive, Geico, State Farm, and Allstate. Combined they insure almost half of the entire U.S. market share. They all offer your standard coverages, but each one has different features and discounts that shoppers can choose from. The data below shows some of the different features that may be available in Maryland.