Best Car Insurance For Teens In Maryland 2025

When it comes to finding the best car insurance for teens in Maryland, GEICO stands out as the top choice.

In this article, we’ll compare the top-rated insurance companies for teen drivers in Maryland, helping you find the best coverage at an affordable price. Without the right insurance, teens face the risk of higher premiums and inadequate protection.

Best Car Insurance For Teenagers In Maryland

To find the best car insurance companies for teenagers, we looked beyond price, as it is far from the only factor that matters when selecting a good insurer. We looked at teen safe driving programs, available discounts, and coverage options.

GEICO and State Farm are two of the best insurance companies for teens in Maryland, with average annual premiums of $4,728 and $6,588.

Cheapest Teen Car Insurance Companies In Maryland

Erie is the cheapest car insurance company for teenage drivers in Maryland, with an average annual premium of $4,068.

Average Cost Of Car Insurance For Teens On Their Parents’ Policy

Remaining on your parents’ insurance policy can be a great way to bring down your teen’s car insurance premium.

Here are the average annual premiums for teens who remain on their parents’ policy, on full coverage policies.

Average Cost Of Car Insurance For Teens On Their Own Policy

Teenagers under the age of 18 usually can’t get their own auto insurance policy. While it’s generally cheaper for teens to remain on their parents’ policy, teenagers who live at a different address from their parents may need to purchase their own policy.

Here are the average annual full-coverage rates for teens on their own policies in Maryland.

How To Get Cheap Car Insurance For Teens In Maryland

Finding affordable car insurance for teenage drivers in Maryland can be difficult, but there are effective ways to reduce costs while maintaining strong coverage.

Shop Around For Quotes

Compare rates from several insurers to identify the most competitive options. Companies such as State Farm and USAA often provide favorable pricing for young drivers in Maryland.

Assess Driving Habits

Evaluate how often and how far your teen drives. Teens who drive less may benefit from usage-based or pay-per-mile programs like GEICO’s DriveEasy or Allstate’s Milewise®.

Add To An Existing Policy

Including your teen on a family policy is usually more affordable than purchasing a separate plan. This approach also simplifies managing coverage under one account.

Ask About Discounts

Look into discounts designed for young drivers, including good student rewards, safe driving incentives, and multi-policy savings. These can significantly reduce premiums.

Bundle Policies

Combine auto insurance with homeowners or renters insurance to unlock multi-policy discounts. Bundling is a common way to cut costs across different types of coverage.

Choose A Higher Deductible

Opting for a higher deductible can lower monthly premiums. Just ensure the deductible amount is manageable in case of an accident.

Enroll In A Safe Driving Course

Encourage your teen to complete a defensive driving program. These courses improve driving skills and may qualify for additional discounts.

Consider Usage-Based Insurance

If your teen drives infrequently, usage-based insurance programs can provide savings by charging based on actual driving behavior and mileage.

Review And Update Regularly

Revisit the policy each year as your teen gains experience. A clean driving record over time may qualify them for new discounts and lower rates.

By combining these strategies, families in Maryland can secure affordable car insurance for teens while promoting safe and responsible driving habits.

Why Is Car Insurance So Expensive For Teens?

Teen drivers consistently face higher insurance premiums because insurers view them as high-risk. Their limited driving experience and greater likelihood of being involved in accidents make coverage more costly compared to older, more seasoned drivers.

Lack Of Driving Experience

New drivers are more prone to mistakes behind the wheel. Without years of practice, teens often struggle to anticipate hazards or react quickly in dangerous situations.

Higher Accident Rates

Statistics show that teenagers, especially young males, are involved in more crashes than any other age group. Risky behaviors such as speeding, distracted driving, and failing to wear seat belts contribute to these elevated accident rates.

Immaturity And Risky Decisions

Decision-making skills are still developing during adolescence. Poor choices, such as aggressive driving or ignoring traffic laws, increase the likelihood of accidents and raise insurance costs.

Greater Severity Of Accidents

Collisions involving inexperienced drivers can result in more serious damage. Teens may not yet know how to handle emergencies, which can lead to higher claim payouts.

Expensive Claims

Repairing newer vehicles or covering medical expenses after an accident can be costly. Insurers factor these potential expenses into premiums for teen drivers.

Limited Credit History

Insurance companies often use credit history when setting rates. Since most teens have little or no credit record, they are unable to benefit from lower premiums tied to established financial responsibility.

These combined factors explain why car insurance for teens is significantly more expensive. Families can help reduce costs by exploring discounts, encouraging safe driving habits, and considering options like adding teens to existing family policies.

How Can I Add A Teen To My Car Insurance Policy?

Adding a teenage driver to your auto insurance is an important step that requires planning. While premiums will increase, there are ways to manage costs and ensure your teen has the right coverage.

Step 1: Notify Your Insurance Company

• Contact your insurer once your teen receives a learner’s permit or driver’s license.
• Provide details such as their date of birth, license number, and any driving history.
• Some companies require immediate addition, while others allow you to wait until the teen is fully licensed.

Step 2: Review Coverage Options

• Check your current policy to see if adjustments are needed.
• Teens driving newer or more valuable vehicles may need comprehensive and collision coverage.
• Consider higher liability limits to protect against costly claims.

Step 3: Ask About Discounts

• Inquire about good student discounts, safe driving incentives, and savings for completing driver’s education.
• Bundling auto insurance with homeowners or renters insurance can also reduce costs.

Step 4: Evaluate Premium Changes

• Request a quote to see how much rates will rise after adding your teen.
• Compare offers from different insurers to find the best deal.
• Adjust deductibles if needed, balancing affordability with out-of-pocket risk.

Step 5: Add Your Teen To The Policy

• Once you’ve chosen coverage and applied discounts, formally add your teen.
• Your insurer will update policy documents to reflect the new driver.

Step 6: Educate Your Teen On Safe Driving

• Stress the importance of responsible driving habits, such as avoiding distractions and following traffic laws.
• Enroll them in a defensive driving course to improve skills and potentially lower premiums.

Step 7: Review The Policy Regularly

• Reassess coverage annually as your teen gains experience.
• Look for new discounts or opportunities to reduce costs as their driving record improves.

By following these steps, families can add a teen driver to their policy while keeping premiums manageable and ensuring strong protection on the road.

Car Insurance Discounts For Teens

Teen drivers often face high insurance costs, but many companies offer discounts that can help reduce premiums. Here are some of the most common ways teens can save:

• Good Student Discount. Maintaining strong grades, usually a B average or 3.0 GPA, can qualify teens for reduced rates. Insurers often view academic responsibility as a sign of safer driving habits.
• Driver’s Education Discount. Completing a certified driver’s education course can lower premiums. These programs teach safe driving skills and reduce accident risk.
• Safe Driving Discount. Teens who maintain a clean driving record without accidents or violations may qualify for reduced rates.
• Safe Driver Programs. Programs such as State Farm’s Steer Clear® and GEICO’s DriveEasy reward young drivers for practicing safe habits. Participation usually involves monitored driving through apps or courses.
• Low Mileage Discount. Teens who drive less frequently, such as only commuting to school or work, may qualify for reduced rates since fewer miles mean less exposure to risk.
• Student Away at School Discount. If your teen attends college more than 100 miles from home and doesn’t regularly drive, insurers may lower premiums because the car is used less often.
• Bundling Discount. Families can save by combining auto insurance with homeowners or renters insurance. Adding a teen to an existing family policy also helps secure multi-policy discounts.
• Accident-Free Discount. Maintaining a clean record without accidents over a set period can qualify teens for lower premiums.
• Early Signing Discount. Some insurers offer savings if you renew or sign up for a policy before the current one expires.
• Usage-Based Insurance Programs. Options like Progressive’s Snapshot® or Allstate’s Drivewise® track driving behavior. Teens who consistently drive safely can earn discounts based on their performance.
• Good Driver Discount. Young drivers who have held a license for several years and maintained a clean record may qualify for this reward.

By taking advantage of these discounts, families can make teenage car insurance more affordable while encouraging safe and responsible driving habits.

Compare Teen Car Insurance Costs To Other States