Car insurance is already expensive in many states across the US, and it’s always been higher for younger drivers. But Maryland has become something of a special case in terms of insurance premiums, with premiums up to 250% higher than drivers in the 30+ range. So why such a large discrepancy, and what can Maryland drivers — particularly teens and their parents — do about it? Read on for more.
What Maryland Drivers Are Paying
First, a quick glance at the average annual premium for Maryland drivers, which might make the reality of premiums for younger drivers sting even more. The average yearly cost of auto insurance in Maryland is $1,305 per year, a full 15% less than the national average. And that’s not even the lowest you can go in Maryland — if you choose Travelers for your auto insurance, for example, you might pay as little as $1,250 per year (about $104 a month). Of course, those numbers can go much higher, as well: Allstate, for example, will cost you a whopping $2,516 a year on average, and if you happen to be a teen driver (or a parent of one), you can expect that to be higher still.
Why So High?
So why exactly are the rates for teen drivers in Maryland so high? It shouldn’t come as a big surprise that teen drivers pose a higher risk for insurance companies. Their relative lack of experience and impulsive nature make them statistically much more likely to be involved in a car accident, particularly fatal ones.
Distracted driving, which is a growing issue nationwide, can be particularly prevalent among teens. Zero Deaths Maryland reports that over 50,000 car accidents in the state have been linked to distracted driving. Cell phones are largely to blame for this phenomenon, and young people are generally on their phones a great deal.
Speeding, tailgating, and reckless driving are much more common in teenage drivers, particularly young male drivers. There’s also the issue of peer pressure, particularly when it comes to drug and alcohol use. A teenager’s capacity for good judgment and sound decision-making is still developing, and they tend to be more susceptible to these pressures than their adult counterparts. Finally, there’s the reality of passengers in the car (particularly teenagers and/or peers) raising the possibility of distractions and reckless behavior.
All of these things add up to bigger risks for insurance companies, which means a bigger premium for the parents of teen drivers.
The Graduated Licensing System
While there’s no immediate solution in sight to the problem of Maryland’s sky-high insurance rates for teen drivers, the state is doing something to help lower the risk factor for those drivers. The state’s Graduated Licensing System (GLS) implements a set of restrictions and requirements for new and learning drivers, which lets them gradually gain experience over time before conferring the full driving privileges of an adult. By introducing new scenarios and learning opportunities, the GLS aims to reduce the likelihood of car accidents among teens.
Lowering Your Insurance Costs
Despite the significant challenges of keeping a teen driver insured (especially in today’s economy), there are a few things teens and their parents can do to help keep those costs down.
The first and most common way to keep premiums lower is to get added to the parent’s insurance policy. Because the parents will almost certainly have more experience and established history when it comes to driving, the premiums will be lower than they would for the teenager on their own.
Shopping around and comparing insurance quotes in Maryland is another great way to find lower rates. For example, as pointed out by The Zebra’s Renata Balasco, you can get minimum coverage from USAA for as little as $399 a year. Exploring your options is a great way to find a policy that fits your needs and budget.
Finding discounts is another way to help mitigate the cost of auto insurance. The average insurer has plenty of discounts available for all sorts of criteria, such as being in certain professions, low mileage, driving history, taking a defensive driving course, and more. Students who maintain good grades and academic performance can often get a discount, as this demonstrates commitment and good judgment to insurance companies.
Finally, it can’t be emphasized enough that a clean driving record is paramount to keeping your insurance premiums low — for both teens and older drivers alike. A simple traffic citation for speeding and reckless driving can wreak havoc on your insurance premiums, and a high-cost accident that causes injuries or even fatalities can lead to astronomical insurance rates (or worse, a revoked license) in addition to the physical and mental trauma. In short, driving safely is one of the most effective ways to fight high insurance premiums.
