The words “cheap” and “insurance” probably shouldn’t be used together, specifically when trying to find the lowest insurance prices for drivers with good credit. Because it’s not cheap, let’s start the ball rolling by going over a few of the things that influence car insurance rates, and figure out some ideas to take a little off your next policy.
The make and model of vehicle that is being insured is one of the main factors in finding cheaper insurance for drivers with good credit. Vehicles with higher performance characteristics, poor passenger safety features, or a high likelihood of having liability claims will cost much more to insure than safer, lower-performance models. The table below showcases car insurance premiums for a selection of the most cost-effective vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $2,359 |
| Jeep Wrangler Sport 4WD 2-Dr | $2,443 |
| Toyota Prius | $2,614 |
| Ford Edge Limited 2WD | $2,736 |
| Honda Odyssey EX | $2,742 |
| Honda CR-V EX-L 4WD | $2,760 |
| Toyota RAV4 4WD | $2,792 |
| Toyota Camry SE | $2,934 |
| Jeep Grand Cherokee Limited 4WD | $2,987 |
| Kia Optima LX | $2,994 |
| Chevrolet Silverado 3500HD LT Crew Cab 2WD | $3,039 |
| Ford Focus SE 2-Dr Coupe | $3,137 |
| Hyundai Elantra SE Touring Station Wagon | $3,140 |
| GMC Sierra 2500HD SLE Regular Cab 2WD | $3,189 |
| Chevrolet Equinox LS 2WD | $3,196 |
| Volkswagen Jetta LE 4-Dr Sedan | $3,205 |
| Dodge Grand Caravan Hero | $3,196 |
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Table data represents single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, homeowner, and multi-policy. Table data does not factor in vehicle location which can increase or decrease prices noticeably.
Looking at the data, you can expect models like the Ford Escape, Jeep Wrangler, Toyota Prius, and Ford Edge should be a few of the cheaper vehicles to insure for financially responsible drivers.
Locating low-cost car insurance is not easy, and finding out which company offers the most affordable auto insurance rates for drivers with good credit calls for even more diligence. Each auto insurance company has their own process for determining prices, so let’s begin by examining the lowest cost auto insurance companies in Baltimore, MD.
Find the Cheapest Car Insurance for High Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $920 |
| 2 | Penn National | $1,104 |
| 3 | Liberty Mutual | $1,114 |
| 4 | Erie | $1,127 |
| 5 | State Auto | $1,178 |
| 6 | Amica | $1,347 |
| 7 | Travelers | $1,398 |
| 8 | MetLife | $1,414 |
| 9 | Nationwide | $1,421 |
| 10 | GEICO | $1,486 |
| 11 | California Casualty | $1,499 |
| 12 | Allstate | $1,613 |
| 13 | State Farm | $1,680 |
| 14 | Progressive | $2,086 |
| 15 | Encompass | $2,516 |
| 16 | Victoria | $3,023 |
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USAA may have some of the best car insurance rates in Baltimore at around $920 annually. This is $639 less than the average premium paid by Maryland drivers of $1,559. Penn National, Liberty Mutual, Erie, and State Auto also are some of the cheaper Baltimore, MD auto insurance companies.
As shown in the table above, if you currently buy coverage from Erie and switched to Penn National, you could realize a yearly price reduction of in the neighborhood of $23. Drivers with State Auto may save as much as $74 a year, and Amica insureds might lower prices by up to $243 a year.
These estimates are averaged across all insureds and vehicles and and are not calculated with a specific vehicle garaging location for drivers with good credit. So the car insurance company that fits your situation best may not even be in the top 16 companies in the list above. That is why you need to get auto insurance quotes using your own driver and vehicle profiles.
Auto insurance companies ranked
Picking a highly-rated car insurance provider can be difficult considering how many choices there are in Baltimore. The company rank data in the next section could help you choose which coverage providers to look at when shopping around. These rankings include large insurance companies, so companies that focus mainly on Maryland business are not included in 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 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
The chart below shows how choosing a deductible can impact insurance premiums when quoting cheap insurance for drivers with good credit. The premium estimates are based on a married female driver, full coverage, and no discounts are applied to the premium.
A 50-year-old driver could save $386 a year by switching from a $100 deductible up to a $500 deductible, or save $584 by changing to a $1,000 deductible. Youthful drivers, like the 20-year-old example, could save up to $958 annually just by using higher deductibles.
If you make the decision to raise deductibles, it will be required to have enough funds in savings to allow you to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Full coverage or liability only
Saving money when shopping for auto insurance is probably important to the majority of people, and one of the fastest ways to find cheaper insurance for drivers with good credit is to not buy comprehensive and collision coverage. The example below illustrates the difference between insurance costs with liability coverage only compared to full coverage. The premiums are based on no claims or driving citations, $250 deductibles, marital status is single, and no discounts are applied.
As an average for all age groups, physical damage coverage on your policy costs $2,846 per year more than insuring for liability only. At some point, every insured wonders if full coverage is worth the money. There isn’t a steadfast formula to stop buying physical damage coverage on your policy, but there is a general guideline. If the yearly cost of comp and collision coverage is about 10% or more 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 book value is $5,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most your company would pay you is $4,500 after paying your policy deductible. If you are currently paying more than $450 annually for full coverage, then it might be time to consider dropping full coverage.
Low rates today, overpriced tomorrow
Baltimore, MD auto insurance rates are impacted by many factors which can substantially decrease or increase the price of coverage. Getting older, increasing deductibles, or having an at-fault accident may generate price changes that can make some companies much cheaper than others.
Additionally, car insurance companies change rates at least once a year in order to remain profitable. Unexpectedly high claims can result in price increases, while lower claim expenses can result in lower-priced Baltimore car insurance rates.
The data below shows the company with the cheapest car insurance in Baltimore, MD for a 45-year-old female driver with no prior claims, no tickets, and good financial standing. If we estimate prices based on her current risk factors, USAA has the best car insurance rates in Baltimore at $1,620 each year. This is $61 more than the average policy premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto are the rest of the cheapest Baltimore, MD auto insurance companies.
Now let’s give the driver from the first set of rates a claim or two, slightly worse credit, and a few blemishes on her driving record. Since each auto insurance company has their own process for determining prices, comparing prices may now present a significantly different list of cheap Baltimore auto insurance companies as shown below.
Travelers now has the best car insurance rate in Baltimore, MD with Nationwide, MetLife, Liberty Mutual, and GEICO also being competitive. This shows why Baltimore drivers need to compare rates when trying to find the most economical insurance rates for drivers with good credit. Car insurance prices are influenced by many factors and can change without notice, so the most economical company a year ago may now be quite expensive.