As any parent can tell you, having a child — especially a teenager — means unexpected expenses. Money for clothing, class trips, school projects, and more can place sudden and unforeseen stress on your finances. This can be particularly true when your teen starts driving. Teenagers are by far the most expensive demographic to insure, and in Maryland, teenagers (or their parents) will pay even more than the average. So how much will you end up paying, and how do you get those rates down if you can’t afford the high cost of insuring your teen driver in Maryland?
How Much Do They Pay?
When it comes to insurance of any kind, it’s important to remember one thing — insurers assign rates based on risk. You pose a certain amount of risk to insurers based on where you live, what kind of car you drive, your driving record, and — most relevant here — your age.
First of all, know that there’s good news for Maryland drivers in general. According to Renata Balasco at The Zebra, Maryland drivers pay an average of $1,305 per year in premiums, which is 15% less than the national average.
Now for the not-so-great news. Drivers between the ages of 16 and 25 in Maryland will pay more than three times the national average for car insurance. You could end up paying as much as $4,433 per year in premiums, which is 240% higher than a Maryland driver in their 30s would pay. That can make a serious dent in anyone’s insurance budget. And that’s not even as bad as it could get — depending on which insurance company you decide to work with, you could pay more than $9,000 a year in insurance premiums!
This will also fluctuate depending on where exactly you live in Maryland. Baltimore, for example, has some of the highest car insurance rates in the state, whereas if you live someplace like Germantown, you’ll pay noticeably less.
One of the several ways you can bring those rates down a little bit is to add the teenage driver to the parent or guardian’s policy — having someone older and more experienced on the policy means the risk comes down somewhat and rates won’t be quite as high. But it’s still likely to sting a bit: parents who add their teens to their car insurance policy can expect to see their premiums jump by an average of 150%.
Why Are Rates So High?
So why exactly are car insurance rates for teen drivers so high in Maryland?
First of all, it’s expensive to insure your teen driver no matter where you live. Insurance companies determine rates based on the risk of a claim, and statistically speaking, teenagers are the demographic most prone to accidents. They’re just learning, particularly susceptible to peer pressure, and often drive recklessly without thinking about it. All that adds up to higher premiums for teen drivers.
This is one of those facts of life that’s unfortunately unavoidable — there’s nothing you can do about it but wait to age out of the riskiest demographic.
When Do Rates Start Decreasing?
On the bright side, the teen years don’t last forever, and once you’re over the age of 18, rates start dropping significantly. A typical teen driver in Maryland might pay $259 a month in premiums at the age of 17. By 18, they’ll be paying $246 a month; by 21, $151; and by 25, $108.
Finding Cheap Car Insurance in Maryland
So what can you do to help keep your insurance premiums under control if you have (or are) a teen driver in Maryland.
- Shop around and compare rates to try to find the best cheap car insurance in Maryland. You may be surprised at what you can save by doing some comparison shopping.
- Maintain a clean driving record. An accident or traffic violation can drive your premiums way up, but if you go long enough without obtaining a mark on your driving record, your insurance company will notice and may bring your premiums down.
- Maintain good grades. Among the many discounts available for car insurance, the “good student” discount is one of the most valuable for teenage drivers. Maintaining good grades tells the insurer that your teen is responsible, dependable, and hard-working, and that translates to lower risk while on the road.
- As mentioned above, if you’re a parent, add your teenager onto your policy. Your rates will still go up, but you may end up paying less than you would for a separate policy.
Take a defensive driving course, or install safety technology on your vehicle such as backup cameras, dash cams, anti-theft devices, and telematics trackers. These items further reduce what an insurance company will pay out in case of a claim, which they’ll pass on to you in the form of lower premiums.
