Wouldn’t it be so easy if we could just tell you the exact company that has the lowest car insurance rates for first-time drivers? It’s just not that easy, however, as there are many unknown factors like your credit score, the amount of liability insurance you need, if you are a good driver, and if you want full coverage, that all impact the price you pay. We will try to teach you about the things that cause high insurance rates and educate you enough to have a good beginning to your quest for cheaper car insurance in Baltimore.
Finding out which insurers offer the lowest-priced insurance rates for first-time drivers calls for more work than just getting one or two price quotes. Every insurance company has a different formula to determine rates, so we’ll go over the insurance companies that tend to have lower prices in Baltimore, MD.
We do need to point out that Maryland insurance rates are calculated based on many things which can significantly increase or decrease the price of your policy. Improving your credit score, buying another vehicle, or getting a DUI can trigger changes in premium that can cause some rates to be much cheaper than others.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $930 |
| 2 | Liberty Mutual | $1,092 |
| 3 | Penn National | $1,126 |
| 4 | Erie | $1,127 |
| 5 | State Auto | $1,226 |
| 6 | Amica | $1,347 |
| 7 | Nationwide | $1,393 |
| 8 | Travelers | $1,398 |
| 9 | MetLife | $1,414 |
| 10 | GEICO | $1,486 |
| 11 | California Casualty | $1,529 |
| 12 | Allstate | $1,662 |
| 13 | State Farm | $1,680 |
| 14 | Progressive | $2,065 |
| 15 | Encompass | $2,592 |
| 16 | Victoria | $2,933 |
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USAA may have some of the cheapest car insurance rates in Baltimore at around $930 per year. This is $629 less than the average premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto also are some of the most economical Baltimore, MD car insurance companies.
As shown in the table above, if you are a customer of Penn National and switched to USAA, you could earn yearly savings of around $196. Customers with Erie could save as much as $197 a year, and State Auto insureds might reduce prices by as much as $296 a year.
These policy rates are averages for all types of insureds and vehicles and do not take into consideration an exact zip code location for first-time drivers. So the auto insurance company that is best suited for you may not even be in the top 16 companies shown above. That emphasizes why you need to get quotes using your own personal information and vehicle type.
The type of vehicle driven is probably the biggest factor that determines whether or not you can buy low-priced auto insurance for first-time drivers. Vehicles with limited top-end speed, good safety features, or a low likelihood of liability claims will cost quite a bit less to insure than fast, unsafe models. The list below features insurance costs for the cheapest automobiles to insure.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $9,058 |
| Honda CR-V LX 4WD | $9,068 |
| Honda Accord EX-L 4-Dr Sedan | $9,720 |
| Volkswagen Jetta S 2.5 Station Wagon | $9,725 |
| Toyota Prius | $9,809 |
| Ford Explorer XLT 4WD | $10,171 |
| Jeep Wrangler Sahara 4WD 2-Dr | $10,179 |
| Dodge Grand Caravan SE | $10,171 |
| Nissan Altima 2.5 4-Dr Sedan | $10,744 |
| Toyota Camry LE | $10,753 |
| Ford Fusion S 4-Dr Sedan | $10,744 |
| Toyota RAV4 Sport 4WD | $10,751 |
| Jeep Grand Cherokee Laredo 4WD | $10,744 |
| Ford F-150 Lariat Crew Cab 4WD | $10,832 |
| Chevrolet Malibu LT | $10,840 |
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Data based on single female driver age 17, 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 garaging location in Baltimore, MD which can influence coverage rates significantly.
Based on these rates, vehicles like the Ford Escape, Honda CR-V, and Honda Accord are going to be some of the most economical vehicles to insure for new drivers. The cost of a car insurance policy will be more costly just because there is more liability exposure for first-time drivers, but generally speaking those specific models will probably have the best rates compared to all other vehicles.
For new drivers, one of the more important criteria that are used to help calculate the cost of insurance is where you choose to live in Baltimore. Larger areas tend to pay slightly more, whereas areas with less congestion tend to receive cheaper rates.
The next table shows the most costly cities in Maryland for first-time drivers to purchase a policy in. Baltimore is ranked at #1 with an annual premium of $1,742 for the average insured, which is approximately $145 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Baltimore | $1,742 |
| 2 | Woodlawn | $1,657 |
| 3 | Dundalk | $1,535 |
| 4 | Aspen Hill | $1,478 |
| 5 | Towson | $1,467 |
| 6 | Bowie | $1,446 |
| 7 | Silver Spring | $1,417 |
| 8 | Waldorf | $1,417 |
| 9 | Catonsville | $1,417 |
| 10 | Essex | $1,416 |
| 11 | Wheaton | $1,375 |
| 12 | Glen Burnie | $1,342 |
| 13 | Severn | $1,327 |
| 14 | Rockville | $1,303 |
| 15 | Gaithersburg | $1,278 |
| 16 | Columbia | $1,275 |
| 17 | Germantown | $1,275 |
| 18 | Ellicott City | $1,271 |
| 19 | Annapolis | $1,268 |
| 20 | Potomac | $1,261 |
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Price information shown is approximated as the specific area where the vehicle is garaged can increase or decrease price quotes greatly.
Discount Baltimore insurance
Insurance companies that offer quotes for first-time drivers may provide premium discounts that can reduce rates by 30% or more if you meet the requirements. Large insurance companies and some of the premium reductions they offer are shown below.
- State Farm may offer discounts for driver’s education, passive restraint, good driver, accident-free, student away at school, anti-theft, and safe vehicle.
- American Family may have discounts that include early bird, good student, bundled insurance, mySafetyValet, multi-vehicle, TimeAway discount, and defensive driver.
- GEICO offers discounts including federal employee, membership and employees, air bags, anti-theft, five-year accident-free, and multi-policy.
- 21st Century policyholders can earn discounts including driver training, teen driver, anti-lock brakes, theft prevention, and automatic seat belts.
- Progressive offers premium reductions for multi-policy, online signing, homeowner, good student, multi-vehicle, and continuous coverage.
The information below shows the comparison of insurance costs with and without discounts. The premiums are based on a male driver, no violations or claims, Maryland state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with anti-theft, paid-in-full, vehicle safety, continuous coverage, paperless filing, and passive restraint discounts applied. When taking advantage of discounts, theaverage amount saved on insurance for first-time drivers is 28% or $660.
Finding the top auto insurance company can be rather challenging considering how many companies sell coverage in Maryland. The ranking information displayed below could help you choose which car insurance companies to look at when comparing rate quotes. These rankings include major nationwide insurance companies, so companies without a large exposure are not taken into consideration for the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
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Data Source: Insure.com Best Car Insurance Companies
The importance of comparing Baltimore car insurance rates
Baltimore, MD insurance rates are calculated based on many things which can substantially change the cost of coverage. Improving your credit score, increasing liability limits, or getting caught speeding can produce rate changes that can make some companies more affordable than others. Not only may your situation change, but auto insurance companies change the rates they charge in Maryland every year in order to protect their financial rating. Unexpectedly high claims can cause additional premium costs, while profitable underwriting can produce cheaper Baltimore car insurance rates.
To illustrate this point, the data below shows which company has the cheapest car insurance in Baltimore, MD for a 35-year-old female driver with a clear driving record, no claims, and solid credit. When comparing rates based on her current rating profile, USAA may have the cheapest car insurance rates in Baltimore at $1,686 each year. This is $127 more than the average price paid by Maryland drivers of $1,559. Penn National, Liberty Mutual, Erie, and State Auto are also included in the best Baltimore, MD auto insurance companies.
Let’s now give the driver from above a couple of claims, a lower credit rating, and a couple of points charged on her driving record. Since every insurance provider has their own formula to set policy rates, analyzing rate quotes could result in a new list of the cheapest car insurance companies in Baltimore as shown below.
Nationwide now has the cheapest price in Baltimore, MD with MetLife, Travelers, GEICO, and Liberty Mutual also having competitive pricing. This demonstrates why Baltimore drivers need to do a thorough rate comparison when trying to get the lowest car insurance rates for first-time drivers.
Insurance rates are influenced by many risk factors and can change without notice, so the best option the last time you checked may now be quite expensive.
If you would rather get help from a professional when shopping around for cheaper insurance for new drivers, the insurance agencies listed below are willing to aid you in deciding which coverages and limits you need.
To locate an agency near you, click the button at the bottom of the list.
Bob Duda – State Farm Insurance Agent
7939 Honeygo Blvd #105 – Baltimore, MD 21236 – (410) 529-2523
Baltimore Insurance Network
11 E Lexington St – Baltimore, MD 21202 – (443) 869-6424
David Rosario – State Farm Insurance Agent
3121 Eastern Ave – Baltimore, MD 21224 – (410) 850-4949
Tamara Thomson – State Farm Insurance Agent
7823 Wise Ave – Baltimore, MD 21222 – (410) 282-7283
Find a Baltimore, MD insurance agent near you
How to find low-cost auto insurance for first-time drivers
The list below shows many penny-pinching suggestions that can help you get lower-cost coverage.
- Drive safe vehicles
- Full coverage may not be needed on older vehicles
- Raise deductibles to save money
- Increase your credit score
- Buying your home and auto policies from the same company can earn a discount
- Earn discounts for being claim-free
- Compare rates and switch if you can find a better deal
The final tip is very vital, as was affirmed in this write-up. Prices charged by auto insurers in Baltimore can change in a short period of time, so you should be ready to switch carriers if a more affordable price is available. Staying with the same car insurance company is fine, but it’s not a good idea if that faithfulness ends up costing you a small fortune year after year. Take a couple minutes and compare prices and find cheaper auto insurance for first-time drivers.