Saving on Insurance Costs

When you’re ready to hit the road alone, you’ll need insurance coverage. Maryland requires all licensed drivers to get auto insurance, which will help pay for injuries and damage if you’re in a crash.

Saving Money on Car Insurance

Risk of a crash is significantly higher for teen drivers, particularly during the first year of driving. So, their auto insurance rates usually cost more. Here are a few ways you can help your family save some money.

  • Keep your grades up. Most auto insurers offer lower auto insurance rates for students with a “B” or higher grade average.
  • Investigate discounts. Many insurers also offer discounts for teen drivers who complete driver’s education or defensive driving courses.
  • Drive carefully! Avoid crashes and tickets, which can cause a teen driver’s auto insurance rates to jump. Plus, it’s the safe thing to do.
  • Don’t get your own car yet. If you won’t be the main driver for any of your family’s vehicles and can be classified as an occasional driver of one car, you could save your family hundreds of dollars.
  • If you need a car, get a sensible one. Many experts agree that mid-sized sedans are the safest choice for teen drivers, and the cars often have the lowest auto insurance rates, too.
  • Partner with your parents. Using a Parent-Teen Driving Agreement could help you avoid a crash or ticket that would increase your rates.

Car Insurance Requirements in Maryland

You are required to carry the following three types of insurance coverage in order to legally drive a vehicle in Maryland:

  • Liability insurance pays damages that are caused by you and suffered by the other party for personal injury, death, or property damage. You must carry a minimum of $20,000 for bodily injury per person, $40,000 for bodily injury for two or more people, and $15,000 for property damage.
  • Uninsured motorist coverage pays damages, after any applicable deductible, that are caused by an uninsured motorist and suffered by you. You must carry a minimum of $20,000 for bodily injury per person, $40,000 for bodily injury for two or more people, and $15,000 for property damage.
  • Personal Injury Protection (PIP) coverage provides the benefits for medical, hospital and disability up to $2,500 for all reasonable expenses arising out of an accident. Note: Full PIP provides benefits for you, any member of your family, and any non-family occupant of your vehicle. You may also choose limited PIP, which excludes benefits for you and members of your family age 16 and over. This alternative costs less and should be considered if you already have medical and hospitalization insurance.

Insurance companies in Maryland determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what type of vehicle you drive.

Learn more about car insurance available through AAA.