Updated March 2026
State Requirements
Maryland requires minimum liability coverage of $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage. The state operates a three-stage graduated licensing system: learner's permit at age 15 years 9 months, provisional license at 16 years 6 months with a midnight–5 a.m. curfew and passenger restrictions, and full unrestricted license at 18 after completing the provisional period. Maryland law mandates that insurers offer good student discounts to drivers under 25 who maintain a B average or better, making it one of the few states where this discount is legally required rather than carrier-discretionary.
Cost Overview
Teen driver insurance costs in Maryland are driven primarily by age, license stage, and driving history, with 16–17-year-olds on learner's permits or provisional licenses representing the highest risk and therefore the highest premiums. The state-mandated good student discount, combined with carrier-offered telematics programs that monitor driving behavior, can reduce costs by 20–35%, making discount stacking the most effective cost management strategy for Maryland parents.
What Affects Your Rate
- Maryland's state-mandated good student discount is legally required for insurers to offer, typically reducing premiums by 8–15% for students under 25 with a B average or 3.0 GPA—parents must submit report cards or transcripts to activate this discount.
- Telematics programs that monitor braking, acceleration, speed, and time-of-day driving can reduce teen driver premiums by 10–25%, with some Maryland insurers offering initial enrollment discounts of 5–10% before monitoring even begins.
- Vehicle choice has outsized impact on teen driver premiums—a 17-year-old driving a 2010 Honda Civic may cost $2,800/year to insure, while the same teen in a 2022 Dodge Charger could cost $5,500/year due to higher theft, repair, and performance vehicle risk ratings.
- Completing a Maryland MVA-approved driver education course beyond the state's minimum requirement can qualify for driver training discounts of 5–15%, and some insurers offer additional discounts if the course includes defensive driving components.
- The add-to-parent-policy decision is almost always more cost-effective in Maryland—a separate policy for a 17-year-old typically costs $4,500–$7,000 annually versus $2,400–$4,200 added to a parent's multi-car policy due to multi-car and household discounts.
- Geographic location within Maryland significantly affects rates—teen drivers in Baltimore City face premiums 25–40% higher than those in suburban Frederick or Carroll counties due to higher accident, theft, and vandalism claim frequencies.
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Get Your Free QuoteCoverage Types
Liability Insurance (Higher Limits)
While Maryland requires only $30,000/$60,000/$15,000, teen drivers' statistically higher accident risk makes $100,000/$300,000/$100,000 or higher a better financial choice for most families.
Collision Coverage
Pays for damage to your teen's vehicle after an accident regardless of fault. Required by lenders but optional for paid-off vehicles.
Comprehensive Coverage
Covers theft, vandalism, weather damage, and animal strikes—risks unrelated to your teen's driving behavior.
Uninsured/Underinsured Motorist Coverage
Protects your teen if they're hit by a driver with no insurance or insufficient coverage to pay for injuries and damage.
Medical Payments Coverage
Pays medical expenses for you and your passengers after an accident, regardless of fault, up to your policy limit.
Full Coverage Package
Combines liability, collision, comprehensive, and uninsured motorist coverage—typically required by lenders and recommended for newer vehicles or households with significant assets to protect.
