The words “affordable” and “insurance” really shouldn’t be used together, specifically when you are searching for the best coverage prices for 18 year olds. Because it’s so expensive, let’s get started by showing you some situations that have an effect on car insurance premiums, and figure out some ways to cut the cost of your next policy.
For teen drivers, one of the big criteria that determine the amount you pay each year for auto insurance is where you choose to live. Larger areas tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The table below shows the most expensive places in Maryland for 18 year olds in which to purchase auto insurance. Baltimore is ranked #1 with the annual price of $1,796 on average, which is approximately $150 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Baltimore | $1,796 |
| 2 | Woodlawn | $1,625 |
| 3 | Dundalk | $1,535 |
| 4 | Essex | $1,474 |
| 5 | Towson | $1,467 |
| 6 | Aspen Hill | $1,435 |
| 7 | Silver Spring | $1,432 |
| 8 | Waldorf | $1,431 |
| 9 | Catonsville | $1,417 |
| 10 | Bowie | $1,404 |
| 11 | Wheaton | $1,375 |
| 12 | Glen Burnie | $1,342 |
| 13 | Severn | $1,314 |
| 14 | Ellicott City | $1,283 |
| 15 | Gaithersburg | $1,278 |
| 16 | Potomac | $1,274 |
| 17 | Rockville | $1,264 |
| 18 | Bethesda | $1,252 |
| 19 | Germantown | $1,249 |
| 20 | North Bethesda | $1,243 |
| 21 | Columbia | $1,225 |
| 22 | Bel Air South | $1,222 |
| 23 | Annapolis | $1,218 |
| 24 | Frederick | $1,044 |
| 25 | Hagerstown | $990 |
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Information shown are comparative as the specific Baltimore residence address can increase or decrease auto insurance rates considerably.
Figuring out which company offers the best car insurance rates for 18 year olds will require a little more sweat in order to find the most economical policy.
Each insurer has a unique formula to set their prices, so let’s rank the car insurance companies with the overall cheapest rates in Baltimore. It’s important that you understand Baltimore car insurance rates are calculated based on many things which can significantly increase or decrease the policy premium. Simply having another birthday, buying a different vehicle, or getting a driving violation may prompt premium changes that can make some companies more affordable than the competition.
Compare Cheap Insurance Quotes for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $948 |
| 2 | Liberty Mutual | $1,092 |
| 3 | Penn National | $1,104 |
| 4 | Erie | $1,161 |
| 5 | State Auto | $1,190 |
| 6 | Amica | $1,308 |
| 7 | MetLife | $1,372 |
| 8 | Nationwide | $1,379 |
| 9 | Travelers | $1,384 |
| 10 | GEICO | $1,442 |
| 11 | California Casualty | $1,529 |
| 12 | State Farm | $1,646 |
| 13 | Allstate | $1,662 |
| 14 | Progressive | $2,128 |
| 15 | Encompass | $2,490 |
| 16 | Victoria | $2,933 |
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USAA quotes some of the lowest car insurance rates in Baltimore at around $948 each year. Liberty Mutual, Penn National, Erie, and State Auto also rank well as some of the cheapest Baltimore, MD auto insurance companies.
In the above example, if you currently have coverage with State Auto and switched to Liberty Mutual, you may realize savings of in the neighborhood of $98. Customers with Amica could save as much as $216 a year, and MetLife customers might cut rates by $280 a year.
Remember that these policy prices are averaged for all insureds and vehicles and and are not calculated with an exact vehicle garaging location for 18 year olds. So the insurer that fits you best may not even be in the list above. That’s why you need to quote rates from many companies using your own personal information and vehicle type.
The vehicle model driven is one of the largest considerations that determines the availability of the cheapest auto insurance for 18 year olds. Vehicles with higher performance, a lack of modern safety features, or high incidents of liability claims will cost much more to insure than more economical and safe models. The list below estimates auto insurance costs for a number of the cheaper automobiles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $9,089 |
| Honda CR-V EX 4WD | $9,195 |
| Ford F-150 XL Regular Cab 2WD | $9,473 |
| Toyota Prius | $9,903 |
| Ford Edge SE 2WD | $10,079 |
| Dodge Grand Caravan CV | $10,184 |
| Chevrolet Impala LS | $10,684 |
| Volkswagen Jetta LE 4-Dr Sedan | $10,790 |
| Chevrolet Malibu Hybrid | $10,797 |
| Toyota RAV4 Limited 2WD | $10,790 |
| Jeep Grand Cherokee Laredo 4WD | $10,796 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $10,892 |
| Ford Explorer Eddie Bauer AWD | $10,898 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $11,114 |
| Hyundai Elantra Blue 4-Dr Sedan | $11,290 |
| Toyota Camry XLE | $11,396 |
| Honda Odyssey EX-L W/Rear Entertainment | $11,405 |
| Toyota Corolla XRS | $11,498 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $11,504 |
| Chevrolet Equinox LTZ 2WD | $11,498 |
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Data based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific location information which can raise or lower premiums considerably.
Based upon the rates shown, you can figure that vehicles like the Ford Escape, Honda CR-V, Ford F-150, and Toyota Prius are most likely going to be some of the cheapest vehicles to insure for teen drivers. Auto insurance rates will be higher anyway just due to the fact that there is a higher risk for 18 year olds, but overall those particular models will probably have the lowest insurance prices compared to other vehicles.
Insurance rate increases from tickets or accidents
The obvious way to maintain affordable car insurance prices in Baltimore for teen drivers is to be a safe driver and avoid getting tickets or having accidents. The example below highlights how speeding tickets and at-fault fender-benders can influence insurance premiums for different insured age categories. The rate quotes are based on a married male driver, full coverage, $500 deductibles, and no discounts are applied.
In the prior example, the average cost of car insurance per year with a clean driving record and no accidents is $1,629. Get written up for two speeding tickets and the average cost increases to $2,241, an increase of $612 each year. Then throw in two accidents along with the two speeding tickets and the yearly cost of car insurance for 18 year olds goes up to an average of $4,636. That’s an increase of $3,007, or $251 per month, just for not being attentive to the road!
Discount Baltimore insurance
Insurance companies that offer quotes for 18 year olds may also give you discounts that can reduce rates by 35% or more if you can meet the requirements. Large car insurance companies and a partial list of their discounts can be read below.
- Mercury Insurance includes discounts for professional/association, annual mileage, age of vehicle, type of vehicle, and low natural disaster claims.
- Farmers Insurance has savings for early shopping, bundle discounts, mature driver, homeowner, teen driver, alternative fuel, and switch companies.
- Farm Bureau offers discounts including 55 and retired, driver training, youthful driver, renewal discount, and multi-vehicle.
- State Farm discounts include driver’s education, student away at school, defensive driving training, Steer Clear safe driver discount, multiple autos, good student, and good driver.
- Allstate policyholders can earn discounts including good student, resident student, teenSMART discount, anti-theft, and senior citizen.
- GEICO has discounts for good student, five-year accident-free, driver training, military active duty, and multi-vehicle.
The illustration below illustrates the difference between annual premium costs with and without discounts. The premiums are based on a male driver, a clean driving record, no at-fault accidents, Maryland state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with continuous coverage, good student, paperless filing, paid-in-full, passive restraint, and anti-theft discounts applied. In this example, the average amount saved each year on car insurance for 18 year olds is 28% or $595.
Cost comparison with and without full coverage
Lowering the price of car insurance should be important to the majority of people, and an effective way to save on the cost of insurance for 18 year olds is to not buy comprehensive and collision coverage. The information below shows the comparison of car insurance costs with and without full coverage. The premiums assume a clean driving record, no at-fault accidents, $250 deductibles, drivers are single, and no discounts are factored in.
If averaged out across all ages, comprehensive and collision coverage on your policy costs an additional $2,129 per year more than buying just liability insurance. That proposes the question when is it safe to stop buying full coverage. There is no exact rule to delete physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s settlement value is $9,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most you would receive is $8,500 after paying your deductible. If premiums are more than $850 annually for physical damage coverage, then you may need to consider dropping full coverage.