How Much Does Auto Insurance Cost for First-time Drivers in Maryland?

Performance level and cost of the vehicle requiring coverage is probably the most important factor that determines if you can find affordable car insurance for first-time drivers. Vehicles with high performance, poor passenger safety features, or high incidents of liability claims will cost much more to insure than more economical and safe models. The data below illustrates car insurance rates for some of the most economical automobiles to buy coverage for.

Cost estimates assume single male driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Maryland minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific zip code location which can alter coverage rates greatly.

Table data represents single male driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Maryland minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in zip code location which can lower or raise rates considerably.

Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Maryland minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in garaging location in Maryland which can decrease or increase coverage prices substantially.

For new drivers, one of the largest things that insurance companies use to calculate the annual cost of car insurance is where you normally keep your vehicle in Maryland. Densely populated urban areas like Baltimore, Dundalk, and Towson tend to pay higher rates, whereas areas with less crime or weather claims benefit from lower coverage costs.

The next table illustrates the higher priced cities in Maryland for first-time drivers to buy car insurance in.

Rate information is approximated as zip code location can lower or raise premiums noticeably.

Determining which companies quote the cheapest insurance rates for first-time drivers may require more time in order to find the lowest price. Every auto insurer has a different process for establishing rates, so let’s take a look at the insurance companies with the overall best prices in Maryland.

It’s a good idea to know that Maryland insurance rates are impacted by many factors which can substantially change the cost of coverage. Simply turning a year older, buying another vehicle, or getting a ticket for careless driving can trigger rate changes that can cause some rates to be affordable when they were higher priced.

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USAA generally has some of the lowest car insurance rates in Maryland at around $920 each year. Liberty Mutual, Erie, Penn National, and State Auto are also some of the cheaper Maryland insurance companies.

In the rate table above, if you are currently insured with Penn National and switched to USAA, you might realize a yearly price reduction of about $217. Maryland drivers with State Auto could save as much as $294 a year, and Amica insureds might lower prices by up to $388 a year.

Remember that these policy rates are averaged across all types of insureds and vehicles and and are not figured with a rate increase for first-time drivers. So the car insurance company that can offer the best rates for your situation may not even be shown in the chart above. That’s why you need to quote rates from many companies using your own personalized driver profile and vehicle information.

The diagram below illustrates how your deductible choice can change insurance rates when getting quotes for cheap insurance for first-time drivers. The data assumes a single male driver, comp and collision included, and no policy discounts are applied.

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A 50-year-old driver could save $332 a year by changing from a $100 deductible to a $500 deductible, or save $504 by using a $1,000 deductible. Youthful drivers, such as the Age 20 example, could drop their prices as much as $1,094 annually by using higher deductibles when buying full coverage. When raising deductibles, it will be important to have additional savings on hand to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

Discounts on cheap auto insurance for first-time drivers in Maryland

Insurance providers that offer quotes for first-time drivers may also give you discounts that can lower rates by 25% or more if you qualify. A list of insurance companies and their possible discounts are shown below.

• GEICO discounts include military active duty, seat belt use, federal employee, air bags, multi-policy, anti-theft, and defensive driver.
• MetLife offers premium reductions for defensive driver, accident-free, good driver, claim-free, good student, and multi-policy.
• State Farm offers discounts for multiple policy, driver’s education, anti-theft, Drive Safe & Save, accident-free, multiple autos, and good student.
• Progressive may have discounts that include online quote discount, online signing, homeowner, multi-policy, multi-vehicle, and good student.
• Mercury Insurance offers discounts including age of vehicle, multi-policy, location of vehicle, good student, good driver, and annual mileage.
• 21st Century may offer discounts for good student, teen driver, homeowners, defensive driver, and anti-lock brakes.
• Allstate has savings for anti-theft, good student, multi-policy, eSmart discount, premier discount, and safe driver.

The information below shows the comparison of auto insurance costs with and without discounts applied to the policy rates. The premiums are based on a male driver, no claims, a clean driving record, Maryland state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with continuous coverage, anti-theft, vehicle safety, paid-in-full, passive restraint, and good student discounts applied. In this example, the the amount saved on insurance for first-time drivers is 28% or $844.

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How to find economical insurance for first-time drivers

The list below details some of the recommended money-saving suggestions that can help Maryland drivers locate low-cost car insurance.

• Higher comprehensive and collision coverage deductibles will save money
• Buy vehicles with good safety ratings
• Accidents can significantly increase rates
• Clean up your credit rating
• Save money by only buying liability coverage for older vehicles
• Do not get traffic violations
• Shop around for cheaper prices

The last suggestion is highly valuable, as was pointed out in this article. Insurance rates in Maryland vary greatly, so drivers shouldn’t be resistant to switch to a new company if a better rate can be found. Having a favorite company is fine, but is isn’t recommended if that loyalty ends up costing a fortune every year. In just a couple of minutes you could compare prices to find cheaper insurance for first-time drivers.