This article would sure be shorter if we could tell you the single best company that has the rock bottom lowest rates in Maryland. It’s not quite that easy, unfortunately, as there are a whole bunch of unknown factors such as if you own or rent your home, the amount of liability coverage you want, and whether you want full coverage, that all impact the cost of coverage. This article will detail the best ways to avoid high prices and will hopefully give you a good start to your coverage search.
One of the many things that help determine the price you pay for insurance is where your residence is. Regions with more people or even just more weather-related claims will most likely have higher rates, whereas areas with less crime or weather claims benefit from lower rates.
The table below rates the most expensive cities in Maryland for college students to buy an auto insurance policy in. Baltimore makes the list at #1 with an annual rate of $1,742 for the average policyholder, which is about $145 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Baltimore | $1,742 |
| 2 | Woodlawn | $1,674 |
| 3 | Dundalk | $1,550 |
| 4 | Towson | $1,512 |
| 5 | Silver Spring | $1,475 |
| 6 | Essex | $1,474 |
| 7 | Aspen Hill | $1,435 |
| 8 | Catonsville | $1,432 |
| 9 | Waldorf | $1,431 |
| 10 | Bowie | $1,404 |
| 11 | Glen Burnie | $1,342 |
| 12 | Wheaton | $1,335 |
| 13 | Severn | $1,327 |
| 14 | Rockville | $1,290 |
| 15 | Gaithersburg | $1,278 |
| 16 | Columbia | $1,275 |
| 17 | Potomac | $1,261 |
| 18 | Annapolis | $1,255 |
| 19 | Bethesda | $1,252 |
| 20 | Germantown | $1,237 |
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Annual rates are comparative as vehicle location can alter coverage prices considerably.
Buying low-priced car insurance is difficult, and deciding which companies have the cheapest auto insurance rates for college students takes even more perseverance. Every insurance company has a proprietary method for determining prices, so let’s take a look at the most competitive auto insurance companies in Baltimore, MD.
It’s important to know that Maryland auto insurance rates are based on many factors which can substantially decrease or increase the cost of your policy. This is why consumers need to take the time to compare lots of rates when trying to get cheap insurance quotes for college students. Insurance prices can be altered by many things and can change substantially, so the lowest-price company the last time you compared rates may now be an over-priced policy.
Find the Cheapest Car Insurance for College Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $948 |
| 2 | Liberty Mutual | $1,092 |
| 3 | Erie | $1,127 |
| 4 | Penn National | $1,137 |
| 5 | State Auto | $1,226 |
| 6 | Amica | $1,334 |
| 7 | MetLife | $1,386 |
| 8 | Nationwide | $1,421 |
| 9 | Travelers | $1,440 |
| 10 | GEICO | $1,442 |
| 11 | California Casualty | $1,544 |
| 12 | Allstate | $1,613 |
| 13 | State Farm | $1,680 |
| 14 | Progressive | $2,065 |
| 15 | Encompass | $2,490 |
| 16 | Victoria | $2,933 |
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USAA has some of the cheapest car insurance rates in Baltimore at around $948 a year. Liberty Mutual, Erie, Penn National, and State Auto would also be considered some of the more affordable Baltimore, MD car insurance companies.
As illustrated above, if you are currently insured with Penn National and switched to Liberty Mutual, you could earn a yearly price reduction of upwards of $45. Maryland drivers with State Auto might save as much as $134 a year, and Amica policyholders might see rate reductions of $242 a year.
These policy rates are averaged for all types of insureds and vehicles and and are not calculated with an exact vehicle garaging location for college students. So the car insurance company that has the cheapest price for you may not even be in the top 16 companies shown above. That point stresses why you need to get quotes using your own driver data and vehicle information.
The car, truck, or SUV requiring insurance is a large consideration that determines the availability of cheaper coverage for college students. Vehicles with lower acceleration and performance, an excellent safety record, or a positive history of liability claims will cost substantially less to insure than high performance models. The next list features insurance prices for some of the cheapest vehicles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $5,145 |
| Honda Accord LX-P 4-Dr Sedan | $5,155 |
| Ford Escape Limited 4WD | $5,551 |
| Toyota Prius | $5,631 |
| Honda Odyssey LX | $5,693 |
| Ford Edge SE 2WD | $5,702 |
| Ford F-150 FX2 Super Cab 2WD | $5,769 |
| Toyota Tacoma 2WD | $6,023 |
| Chevrolet Impala LS | $6,031 |
| Toyota RAV4 Limited 4WD | $6,099 |
| Dodge Grand Caravan Hero | $6,108 |
| Toyota Camry LE | $6,099 |
| Ford Explorer Limited 2WD | $6,179 |
| Get a Custom Quote Go | |
Data variables include single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific garaging location which can increase or decrease prices considerably.
Looking at the data, you can conclude that models like the Honda CR-V, Honda Accord, Ford Escape, Toyota Prius, and Honda Odyssey will be a few of the cheapest vehicles to insure for students in college. The cost of auto insurance will be more expensive because there is more risk for college students, but generally speaking those vehicles will have the best insurance prices possible.
Ending up with a high-quality auto insurance company can be difficult considering how many companies are available to choose from in Baltimore. The company ratings displayed below may help you pick which coverage providers you want to consider when comparing auto insurance rates for college students. These ratings are only comprised of companies with a national presence, so companies that focus mainly on Maryland business are not included in these rankings.
| 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
Full coverage or liability only
Buying cheaper auto insurance is important to most people, and a great way to save on the cost of insurance for college students is to only buy liability coverage. The example below illustrates the comparison of insurance rates with full physical damage coverage compared to only buying the minimum liability limits required in Maryland. The premium estimates are based on no driving violations, no at-fault accidents, $100 deductibles, single status, and no additional discounts are factored in.
Averaged for all ages 20 through 70, physical damage coverage on your policy costs an additional $3,113 per year over having just liability coverage. That is a big expense that brings up the question if paying for full coverage is worth it. There isn’t a written rule to drop comp and collision coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it may be the right time to buy liability only.
For example, let’s assume your vehicle’s settlement value is $10,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, you would only receive $9,000 after paying your deductible. If it’s costing you more than $900 a year for physical damage coverage, then you might consider buying liability only.
There are a few situations where buying only liability insurance is not financially feasible. If you still owe a portion of the original loan, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
Why you should compare rates
Maryland auto insurance rates are based on many factors that can increase the price of your policy. Simply having a birthday, buying a different home, or getting a ticket for careless driving can trigger price changes that can now make some companies cheaper in comparison to the competition. Not only that, but companies change rates without warning to help ensure profitability. An unexpected high level of claims may cause additional price hikes, while a better claims history may produce lower-cost Baltimore car insurance rates.
To illustrate this example, the chart below shows the cheapest car insurance in Baltimore, MD for a 40-year-old female driver with no accidents, a clean driving record, and great credit. If we look at prices based on her personal risk profile, USAA offers the lowest car insurance rates in Baltimore at $1,662 per year. This is $103 more than the average price paid by Maryland drivers of $1,559. Penn National, Liberty Mutual, Erie, and State Auto are also on the list of the cheapest Baltimore, MD auto insurance companies.
Now let’s give the driver from above a couple of claims, a lower credit rating, and an imperfect driving record. Since each auto insurer has a different formula for determining rates, comparing prices most likely will result in a different ranking of companies as shown below.
Travelers now has the best insurance rate in Baltimore, MD with Nationwide, MetLife, GEICO, and Erie now rounding out the top five. This example demonstrates why it is critical to do a thorough rate comparison when trying to find cheap auto insurance quotes for college students.
Insurance prices are made up of many risk factors and can decrease or increase without notice, so the most economical option six months ago may now not even be in the top five.