The words “affordable” and “auto insurance” really don’t belong together, especially when you are searching for the best price on coverage for state employees. In an attempt to save some money, let’s get started by showing you a few of the things the can have a considerable influence on auto insurance prices, and find out if you can reduce the cost of the next policy you buy.
For state workers, one of the more important factors that are used to help calculate the amount you pay for auto insurance is where you keep your car. Larger areas will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of cheap car insurance rates.
The illustration below shows the most expensive cities in Maryland for state employees to purchase a policy in. Baltimore is ranked #1 with an annual rate of $1,742 for the average policyholder, which is approximately $145 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Baltimore | $1,742 |
| 2 | Woodlawn | $1,674 |
| 3 | Dundalk | $1,490 |
| 4 | Towson | $1,482 |
| 5 | Silver Spring | $1,460 |
| 6 | Bowie | $1,432 |
| 7 | Waldorf | $1,431 |
| 8 | Essex | $1,431 |
| 9 | Aspen Hill | $1,420 |
| 10 | Catonsville | $1,417 |
| 11 | Glen Burnie | $1,329 |
| 12 | Wheaton | $1,321 |
| 13 | Severn | $1,275 |
| 14 | Columbia | $1,275 |
| 15 | Ellicott City | $1,271 |
| 16 | Annapolis | $1,268 |
| 17 | Gaithersburg | $1,265 |
| 18 | Rockville | $1,264 |
| 19 | Potomac | $1,261 |
| 20 | North Bethesda | $1,256 |
| 21 | Germantown | $1,249 |
| 22 | Bethesda | $1,202 |
| 23 | Bel Air South | $1,174 |
| 24 | Frederick | $1,014 |
| 25 | Hagerstown | $990 |
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Rate information is comparative as specific Baltimore zip code can alter coverage prices significantly.
The make and model of vehicle you are insuring is a significant factor when comparison shopping for cheap auto insurance for state employees. Vehicles with limited speed and performance, good safety features, or a positive history of liability claims will cost much less to insure than adrenaline junky models. The table below shows car insurance prices for some of the most cost-effective automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra SE Touring Station Wagon | $2,655 |
| Dodge Grand Caravan CV | $2,740 |
| Ford Escape XLS 4WD | $2,757 |
| Honda CR-V EX-L 4WD | $2,828 |
| Honda Odyssey EX W/Rear Entertainment | $2,838 |
| Ford Edge SE AWD | $2,848 |
| Jeep Grand Cherokee Laredo 4WD | $2,895 |
| Toyota Prius | $2,972 |
| Ford Explorer XLT AWD | $2,993 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $3,000 |
| Toyota Camry XLE | $3,050 |
| Nissan Rogue S 2WD | $3,095 |
| GMC Sierra SLE Regular Cab 4WD | $3,103 |
| Volkswagen Jetta SE 2.5 Station Wagon | $3,148 |
| Nissan Altima 2.5 4-Dr Sedan | $3,166 |
| Chevrolet Malibu LS | $3,172 |
| Chevrolet Impala LS | $3,183 |
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Data based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, safe-driver, and multi-policy. Price information does not factor in specific location which can influence coverage prices considerably.
Looking at the data, cars like the Hyundai Elantra, Dodge Grand Caravan, Ford Escape, Honda CR-V, and Honda Odyssey will definitely be a few of the cheaper vehicles to insure for state workers.
Determining which companies quote the most affordable insurance rates for state employees calls for a little more sweat in order to find the most economical policy. Every car insurance company has their own guidelines for establishing rates, so let’s take a look at the insurance companies with the most affordable rates in Baltimore.
Cheapest Insurance Rates in Maryland
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $958 |
| 2 | Penn National | $1,104 |
| 3 | Liberty Mutual | $1,114 |
| 4 | Erie | $1,149 |
| 5 | State Auto | $1,190 |
| 6 | Amica | $1,334 |
| 7 | MetLife | $1,386 |
| 8 | Nationwide | $1,421 |
| 9 | Travelers | $1,426 |
| 10 | GEICO | $1,486 |
| 11 | California Casualty | $1,529 |
| 12 | Allstate | $1,596 |
| 13 | State Farm | $1,696 |
| 14 | Progressive | $2,149 |
| 15 | Encompass | $2,516 |
| 16 | Victoria | $2,933 |
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USAA may have some of the most affordable car insurance rates in Baltimore at around $958 a year. This is $601 less than the average premium paid by Maryland drivers of $1,559. Penn National, Liberty Mutual, Erie, and State Auto also make the cut as some of the most economical Baltimore, MD auto insurance companies.
In the above example, if you buy coverage from State Auto and switched to Penn National, you might see an annual premium reduction of around $86. Customers with Amica could save as much as $230 a year, and MetLife customers might reduce prices by as much as $282 a year.
If you would like to find cheaper car insurance rates, click here to start a quote or click through to the companies below.
Remember that these estimates are averages across all drivers and vehicles in Maryland and do not factor in a vehicle location for state employees. So the auto insurance company that has the lowest price for you may not even be in the list above. That helps illustrate why you need to get rate quotes using your own personalized driver profile and vehicle information.
Does full coverage make sense?
Paying less for insurance is the goal of most vehicle owners, and one of the quickest ways to lower the cost of insurance for state employees is to only buy liability coverage. The diagram below illustrates the comparison of car insurance rates with full coverage and liability only. The prices are based on a clean driving record, no claims, $250 deductibles, drivers are single, and no policy discounts are applied.
If the expense is averaged for all age categories, physical damage coverage costs $2,129 per year more than carrying just liability coverage. At some point, about every driver wonders when is the right time to remove full coverage. There is no set rule that works best for making the decision to drop comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost of comp and collision coverage is more than 10% of the settlement you would receive from your company, then you may need to consider dropping full coverage.
For example, let’s pretend your vehicle’s book value is $12,000 and you have $1,000 deductibles. If your vehicle is severely damaged, you would only receive $11,000 after paying your deductible. If premium cost is more than $1,100 annually for physical damage coverage, then it may be the right time to buy liability only.
There are some scenarios where only buying liability is not in your best interest. If you have an outstanding loan on your vehicle, you are required to maintain full coverage in order to keep the loan. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should not remove full coverage.
Discounts on Baltimore car insurance
Insurance providers that sell policies for state employees may provide discounts that can lower rates by as much as 40% or more if you qualify. Popular insurance companies and a summarized list of policyholder discounts include:
- GEICO offers discounts for seat belt use, membership and employees, federal employee, five-year accident-free, and daytime running lights.
- Travelers policyholders can earn discounts including continuous insurance, IntelliDrive, hybrid/electric vehicle, home ownership, and multi-car.
- Nationwide offers premium reductions for good student, defensive driving, multi-policy, accident-free, Farm Bureau membership, easy pay, and family plan.
- Farmers Insurance offers discounts including early shopping, youthful driver, homeowner, good student, distant student, and business and professional.
- Esurance has discounts for safety device, emergency road assistance, multi-car, paid-in-full, multi-policy, and homeowner.
- State Farm may include discounts for driver’s education, good student, accident-free, passive restraint, and student away at school.
- Progressive has savings for online signing, online quote discount, homeowner, multi-vehicle, and good student.
- Mercury Insurance may have discounts that include multi-policy, low natural disaster claims, anti-theft, good driver, annual mileage, and multi-car.
The example below illustrates the difference between auto insurance rates with and without discounts applied to the policy rates. Data assumes a male driver, no claims or violations, Maryland state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with homeowner, accident-free, defensive driving course, safe-driver, claim-free, and anti-theft discounts applied. When these discounts are applied, theamount saved on insurance for state employees is 28% or $530.
Impact of speeding/accidents on insurance rates
The ideal way to get low insurance prices in Maryland for state workers is to pay attention while driving and avoid getting tickets or having accidents. The example below demonstrates how citations and at-fault claims can drive up insurance rates for different age groups. The information is based on a married female driver, full coverage, $1,000 deductibles, and no discounts are applied.
In the previous chart, the average cost of a car insurance policy per year with no accidents or violations is $1,731. Get written up for two speeding tickets and the average cost increases to $2,454, an increase of $723 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of insurance for state employees goes up to an average of $3,198. That’s an increase of $1,467, or $122 per month, just for not driving safely!