The words “low-cost” and “insurance” really don’t belong together, in particular when you are looking for the lowest insurance rates for retired military. To save some money, let’s go over a few of the factors that influence car insurance premiums, and find out if you can lower the cost of the next policy you buy.
For veterans, one of the largest considerations that are looked at to help calculate car insurance rates is where you live. More densely populated places tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents can boast about having cheaper rates.
The table below sorts the highest-priced places in Maryland for retired military to buy car insurance in. Baltimore is ranked #1 with a yearly cost of $1,742 for the average insured, which is approximately $145 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Baltimore | $1,742 |
| 2 | Woodlawn | $1,657 |
| 3 | Dundalk | $1,505 |
| 4 | Silver Spring | $1,475 |
| 5 | Towson | $1,467 |
| 6 | Essex | $1,431 |
| 7 | Aspen Hill | $1,420 |
| 8 | Catonsville | $1,417 |
| 9 | Bowie | $1,390 |
| 10 | Waldorf | $1,389 |
| 11 | Glen Burnie | $1,370 |
| 12 | Wheaton | $1,361 |
| 13 | Severn | $1,314 |
| 14 | Gaithersburg | $1,304 |
| 15 | Rockville | $1,303 |
| 16 | Ellicott City | $1,283 |
| 17 | Potomac | $1,274 |
| 18 | Columbia | $1,263 |
| 19 | North Bethesda | $1,256 |
| 20 | Germantown | $1,237 |
| 21 | Annapolis | $1,231 |
| 22 | Bethesda | $1,215 |
| 23 | Bel Air South | $1,186 |
| 24 | Hagerstown | $1,010 |
| 25 | Frederick | $1,004 |
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Information shown are estimated as the specific zip code location can decrease or increase premium rates noticeably.
Establishing which companies have the best auto insurance rates for retired military calls for a little more work in order to find the best price. Each insurer has a proprietary formula for setting prices, so let’s take a look at the most budget-friendly auto insurance companies in Baltimore.
It’s a good idea to know that Maryland auto insurance rates are based on many factors which can significantly increase or decrease the cost of coverage. Simply having a birthday, getting divorced, or having an at-fault accident may generate price changes that may make certain companies cheaper than before.
Find the Cheapest Car Insurance for Vets
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $930 |
| 2 | Erie | $1,115 |
| 3 | Liberty Mutual | $1,125 |
| 4 | Penn National | $1,126 |
| 5 | State Auto | $1,214 |
| 6 | Amica | $1,308 |
| 7 | Travelers | $1,384 |
| 8 | MetLife | $1,414 |
| 9 | Nationwide | $1,421 |
| 10 | GEICO | $1,428 |
| 11 | California Casualty | $1,484 |
| 12 | Allstate | $1,613 |
| 13 | State Farm | $1,680 |
| 14 | Progressive | $2,086 |
| 15 | Encompass | $2,490 |
| 16 | Victoria | $3,053 |
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USAA has some of the lowest car insurance rates in Baltimore at around $930 a year. Erie, Liberty Mutual, Penn National, and State Auto also rank well as some of the more affordable Baltimore, MD car insurance companies.
As shown above, if you are currently insured with Liberty Mutual and switched to USAA, you could earn yearly savings of in the neighborhood of $195. Policyholders with Penn National might save as much as $196 a year, and State Auto customers might lower prices by up to $284 a year.
Bear in mind that those policy prices are averaged for all types of insureds and vehicles and do not take into consideration a vehicle location for retired military. So the company that fits you best may not even be in the top 16 companies shown above. That’s why you need to get car insurance quotes using your own individual information.
The vehicle model requiring insurance is a significant factor when quoting cheaper coverage for retired military. Vehicles with high performance engines, a lack of safety features, or high incidents of liability claims will cost much more to insure than more modest models.
The next table outlines coverage prices for a handful of the cheaper automobiles to insure in Maryland.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra SE Touring Station Wagon | $2,703 |
| Honda CR-V LX 4WD | $2,813 |
| Ford F-150 XL Crew Cab 4WD | $2,849 |
| Dodge Grand Caravan Hero | $2,952 |
| Toyota RAV4 Limited 4WD | $2,962 |
| Ford Escape Limited 4WD | $2,970 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $2,981 |
| Toyota Prius | $3,034 |
| Honda Accord EX-L 4-Dr Sedan | $3,041 |
| Ford Explorer Eddie Bauer 2WD | $3,052 |
| GMC Sierra 2500HD SLE Extended Cab 4WD | $3,166 |
| Chevrolet Impala LS | $3,176 |
| Ford Edge SEL AWD | $3,166 |
| Chevrolet Equinox LTZ 2WD | $3,174 |
| Chevrolet Malibu LTZ | $3,166 |
| Honda Odyssey Touring | $3,173 |
| Dodge Ram Quad Cab ST 4WD | $3,215 |
| Toyota Tacoma Double Cab 4WD | $3,230 |
| Hyundai Sonata SE 4-Dr Sedan | $3,315 |
| Ford Fusion S 4-Dr Sedan | $3,322 |
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Premium data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include homeowner, multi-policy, claim-free, safe-driver, and multi-vehicle. Prices do not factor in specific zip code location which can revise premiums noticeably.
Looking at the numbers, models like the Hyundai Elantra, Honda CR-V, and Ford F-150 are most likely to be a few of the less-costly vehicles to insure for veterans.
Get discounts on Baltimore insurance
Car insurance companies that provide coverage for retired military may also provide policy discounts that could reduce prices by as much as 30% if you are eligible for them. Large auto insurance companies and some of their more popular discounts can be read below.
- Farmers Insurance policyholders can earn discounts including bundle discounts, electronic funds transfer, distant student, mature driver, youthful driver, good student, and switch companies.
- State Farm has discounts for multiple autos, good student, safe vehicle, multiple policy, student away at school, and anti-theft.
- Liberty Mutual offers discounts for multi-policy, multi-car, new graduate, new move discount, safety features, and exclusive group savings.
- MetLife may offer discounts for accident-free, defensive driver, multi-policy, good driver, and good student.
- Progressive may have discounts that include good student, online signing, continuous coverage, multi-policy, and multi-vehicle.
The illustration below visualizes the comparison of auto insurance rates with and without discounts applied to the rates. Data assumes a female driver, no claims, a clean driving record, Maryland state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with anti-theft, vehicle safety, accident-free, multiple policy, claim-free, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average savings per year on auto insurance for retired military is 28% or $609.
The chart below illustrates how your choice of deductibles can increase or decrease annual premium costs when searching for cheap insurance for retired military. The data assumes a single female driver, comp and collision included, and no other discounts are factored in.
A 40-year-old driver could cut expenses by $320 a year by changing from a $100 deductible to a $500 deductible, or save $486 by changing to a $1,000 deductible. Young drivers, like the Age 20 chart data, have the ability to save $816 or even more by using a higher deductible.
If you do raise deductibles, it is essential to have enough funds in savings to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Who has the cheapest Baltimore car insurance?
Baltimore, MD auto insurance rates are impacted by many factors that will increase or decrease the cost of a policy. Improving your credit rating, buying another vehicle, or having an at-fault accident may generate price changes that may make certain companies more affordable than others. In addition to those changes, auto insurance companies change their prices as often as every three months in order to be able to pay unexpected claims. Higher than usual claims may result in increased rates, while less frequent claims may cause cheaper Baltimore car insurance rates.
To help illustrate this point, the chart below shows a variety of companies that have the cheapest car insurance in Baltimore, MD for a 35-year-old female driver with no prior accidents, a clean driving record, and good credit. If we estimate prices based on her personal risk profile, USAA offers the most affordable car insurance rates in Baltimore at $1,637 a year. This is $78 more than the average premium 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.
In this example, we will give the driver from above a chargeable accident, bad credit, and a speeding ticket. Since every insurance provider has their own process to set their prices, getting updated rate quotes could result in a slightly different list of the cheapest car insurance companies in Baltimore as shown below.
MetLife now has the lowest car insurance rate in Baltimore, MD with Nationwide, Travelers, GEICO, and USAA now rounding out the top five. This demonstrates why it is crucial to spend some time comparing rates to find affordable auto insurance rates for retired military.
Auto insurance prices can be determined by many things and can change without notice, so the lowest-price company three years ago may now be wasting a lot of money.
How to find budget-friendly car insurance for retired military
The list below summarizes some of the better penny-pinching ideas that can help you get lower-cost coverage.
- Prevent rate increases by staying accident-free
- Do not get tickets or violations
- Home or renters coverage can save on auto insurance
- If possible, pay for small claims out-of-pocket
- Vehicles with good safety ratings have lower liability rates
- Compare rates regularly and switch companies to save money
The last tip is especially critical, as was discussed in the article above. Rates in Baltimore change frequently, so don’t be hesitant to buy a policy from a new company if you can find a cheaper rate. Having a favorite company is fine, but it’s not recommended if your bullheadedness ends up costing you a considerable chunk of change every month. It only take a few minutes to compare prices to find cheaper car insurance for retired military.