Insurance

Maryland requires all drivers to get auto insurance, which will help pay for medical costs and damage if you’re in a crash. As a new teen driver with a learner’s permit, you won’t need your own insurance coverage until you start driving without supervision.

Planning ahead: How Can I Help Keep Teen Driver Auto Insurance Costs Down?

  • Keep your grades up. Most insurers offer lower auto insurance rates for students with a “B” or higher grade average.
  • Investigate discounts. Many insurers offer discounts for teen drivers who complete driver’s education or defensive driving courses.
  • 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 in auto insurance.
  • Practice, practice, practice. Now is the time to drive a lot with your parents under different conditions, so you’ll have fewer surprises (and potential crashes) when you’re driving solo.
  • Partner with your parents. Research shows that teen drivers with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your auto insurance rates down. Completing a parent-teen driving agreement with your parents can help.

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.

  • AAA StartSmart – A series of newsletters that address the challenges teens face when learning to drive.