Deciphering which companies have the best insurance rates for high risk drivers calls for a tad more effort than just comparing rates from one or two companies. Every car insurance company uses their own method to establish rates, so we need to take a look at the most affordable insurance companies in Baltimore.
It’s a good idea to be aware that Baltimore, MD insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. Getting older, buying a home instead of renting, or having a fender bender may generate price changes resulting in some companies being more affordable than competitors.
Find Cheaper Auto Insurance for Risky Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $920 |
| 2 | Liberty Mutual | $1,125 |
| 3 | Penn National | $1,126 |
| 4 | Erie | $1,149 |
| 5 | State Auto | $1,190 |
| 6 | Amica | $1,334 |
| 7 | MetLife | $1,386 |
| 8 | Travelers | $1,398 |
| 9 | Nationwide | $1,435 |
| 10 | GEICO | $1,472 |
| 11 | California Casualty | $1,529 |
| 12 | Allstate | $1,596 |
| 13 | State Farm | $1,680 |
| 14 | Progressive | $2,086 |
| 15 | Encompass | $2,566 |
| 16 | Victoria | $3,023 |
| Find Your Rate Go | ||
USAA may offer some of the cheapest car insurance rates in Baltimore at around $920 each year. Liberty Mutual, Penn National, Erie, and State Auto also rank well as some of the more affordable Baltimore, MD car insurance companies.
As the example above demonstrates, if you currently have a policy with Penn National and switched to USAA, you may realize an annual premium reduction of about $206. Insureds with Erie may save as much as $229 a year, and State Auto insureds might cut rates by $270 a year.
These policy prices are averages across all ages of drivers and types of vehicles and do not factor in a vehicle location for high risk drivers. So the auto insurance company that fits you best may not even be in the top 16 companies in the list above. That underscores the importance of why you need to quote rates from many companies using your own personal information and vehicle type.
One of the more important factors that help determine the amount you pay each year for auto insurance is your address. More densely populated places will most likely pay more, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The information below rates the priciest cities in Maryland for high risk drivers to purchase a policy in. Baltimore shows up at #1 with the yearly price of $1,814 on average, which is around $151 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Baltimore | $1,814 |
| 2 | Woodlawn | $1,674 |
| 3 | Dundalk | $1,535 |
| 4 | Aspen Hill | $1,478 |
| 5 | Catonsville | $1,475 |
| 6 | Towson | $1,467 |
| 7 | Waldorf | $1,431 |
| 8 | Silver Spring | $1,417 |
| 9 | Essex | $1,416 |
| 10 | Bowie | $1,404 |
| 11 | Glen Burnie | $1,342 |
| 12 | Wheaton | $1,335 |
| 13 | Ellicott City | $1,283 |
| 14 | Gaithersburg | $1,278 |
| 15 | Severn | $1,275 |
| 16 | Rockville | $1,264 |
| 17 | Annapolis | $1,255 |
| 18 | North Bethesda | $1,243 |
| 19 | Bethesda | $1,239 |
| 20 | Columbia | $1,238 |
| 21 | Germantown | $1,237 |
| 22 | Potomac | $1,224 |
| 23 | Bel Air South | $1,174 |
| 24 | Hagerstown | $1,020 |
| 25 | Frederick | $1,014 |
| Find the Best Rates Go | ||
Rates are comparative as the vehicle garaging location can alter coverage prices noticeably.
Get discount Baltimore car insurance
Insurance companies that offer cheap quotes for high risk drivers may provide premium discounts that could reduce prices by as much as 35% or more if you meet specific eligibility requirements. Popular insurance companies and their possible discounts include:
- State Farm may include discounts for multiple policy, good student, passive restraint, multiple autos, safe vehicle, and accident-free.
- American Family policyholders can earn discounts including air bags, good student, Steer into Savings, accident-free, mySafetyValet, and good driver.
- GEICO discounts include anti-theft, military active duty, good student, five-year accident-free, air bags, and multi-policy.
- 21st Century has discounts for automatic seat belts, good student, theft prevention, air bags, student driver, anti-lock brakes, and homeowners.
- Progressive has savings for multi-policy, homeowner, continuous coverage, online signing, good student, multi-vehicle, and online quote discount.
The chart below illustrates the comparison of insurance rates with and without some available policy discounts. The premiums assume a female driver, one accident and two traffic tickets, Maryland state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with multiple vehicle, marriage, continuous coverage, vehicle safety, paperless filing, and homeowner discounts applied. When discounts are factored in, the average amount saved each year on insurance for high risk drivers is 28% or $1,040.
Impact of careless driving on insurance rates
The common sense way to enjoy cheap insurance premiums for high risk drivers is to drive carefully and avoid tickets and accidents. The information below highlights how speeding tickets and at-fault claims increase auto insurance costs for each age group. The costs are based on a married female driver, comprehensive and collision coverage, $100 deductibles, and no additional discounts are factored in.
The chart shows that the average cost of an auto insurance policy in Maryland per year with a clean driving record and no accidents is $2,388. Factor in one speeding ticket and the average cost rises to $2,782, an increase of $394 each year. Now get one accident along with the one speeding ticket and the annual cost of insurance for high risk drivers goes up to an average of $3,912. That’s an increase of $1,524, or $127 per month, just for being a careless driver!
Full coverage rates compared to liability only
Paying less for insurance is probably important to the majority of vehicle owners, and one of the fastest ways to lower the cost of insurance for high risk drivers is to not pay for full coverage. The information below shows the difference between auto insurance costs with full physical damage coverage and with liability coverage only. The premiums assume no violations or claims, $500 deductibles, marital status is single, and no discounts are taken into consideration.
Averaged out for all age groups, comprehensive and collision coverage on your policy costs $2,092 per year over having just liability coverage. Many drivers will wonder if paying for full coverage is a waste of money. There is no clear-cut formula to exclude full coverage, but there is a general convention. If the annual cost of coverage is more than 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $5,500 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would get paid by your company is $4,500 after paying the physical damage deductible. If you are currently paying more than $450 a year for comprehensive and collision coverage, then you might consider buying liability only.
Why you should be shopping around
Baltimore, MD insurance rates are calculated based on many things that will increase or decrease your annual premium. Simply improving your credit, getting divorced, or having an accident may prompt premium changes resulting in some rates now being cheaper in comparison to the competition. Not only may things change on your end, but companies amend pricing at least once a year to reflect underwriting profits or losses. Unexpectedly high claims can cause price increases, while a better claims history can cause lower-priced Baltimore car insurance rates.
The graph below shows the company with the cheapest car insurance in Baltimore, MD for a 40-year-old male driver with no violations or accidents, and good credit. When quoting prices based on his current risk profile, USAA quotes the lowest car insurance rates in Baltimore at $1,755 a year. This is $196 more than the average price paid by Maryland drivers of $1,559. Liberty Mutual, Erie, Penn National, and State Auto are the remaining cheapest Baltimore, MD auto insurance companies.
Let’s now give the driver from the first example an accident claim, poor credit, and a traffic citation. Because each insurer uses a different method for setting prices, comparing rates could result in a significantly different list of the cheapest Baltimore car insurance companies as shown below.
Nationwide now has the best auto insurance rate in Baltimore, MD with Travelers, MetLife, Liberty Mutual, and California Casualty also being competitive. This shows why consumers need to take the time to perform a complete rate comparison to get the best insurance rates for high risk drivers.
Insurance prices can be determined by many things and can change without notice, so the best option the last time you shopped around may now be one of the more expensive options.