Maryland is a small state, but some areas have a high cost of living, and geography plays a significant role in determining how much car insurance costs. Drivers living close to the Washington, D.C. metropolitan area typically pay more than those in rural areas. But even for Maryland residents who live in higher-priced areas, it is possible to find car insurance coverage to fit most needs at affordable prices. The average Maryland driver can expect to pay about $758 per year for minimum coverage and $1,783 per year for full coverage.
The cheapest car insurance companies in Maryland
Car insurance companies should not only be cheap. Drivers should look for companies that offer the most value, with affordable options that also meet their unique needs. These three car insurance companies are currently the cheapest in Maryland:
|Car Insurance Company||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
Quadrant Information Services, 2020
USAA is a top car insurance company across the nation, known for its cheaper than average prices, great customer service and extensive list of benefits and discounts. The car insurance company consistently scores above average in ratings from J.D. Power across all regions. However, the downside of USAA is that it is only available to active and former military personnel or those related to service members.
Erie Insurance offers some of the lowest rates in the industry. The insurer offers its signature discount, Rate Lock, which locks in pricing indefinitely. There are discounts for bundling, prepayments, young drivers, safe driving, low mileage and good grades.
Erie rates fairly high in J.D. Power’s 2020 claims satisfaction study, with a score of 880 out of 1000, which ranks them 8th overall in the nation.
Geico is one of the largest auto insurers in the U.S. It offers affordable prices for minimum and full coverage insurance, a wide variety of coverage options and an extensive list of discounts. It also scored high on J.D. Power Score ratings in the Mid-Atlantic region with a rating of 841 out of 1000 points.
The average Maryland driver pays $605 annually for Geico’s minimum coverage car insurance and $1,544 annually for Geico’s full coverage option. Drivers can save with Geico’s discounts such as good student, multi-policy, federal employee, military discounts and more.
Affordable coverage for Maryland drivers
Maryland requires at least a minimum limit of liability and uninsured motorist coverage for bodily injury of $30,000 per person and $60,000 per accident and property damage liability at a minimum of $15,000 per accident. While these are the minimum limits, Maryland drivers should consider carrying higher limits to protect themselves in the event of a costly claim.
How to get cheap car insurance in Maryland
While some car insurance providers are cheaper than others, there are other ways to save money on car insurance:
- Shop around: Many factors determine a driver’s car insurance rates, so take the time to thoroughly explore all the options available and compare pricing from multiple providers.
- Ask about discounts: Some insurance carriers may offer extra incentives or savings that can lower premiums, such as low mileage discounts for occasional drivers or student discounts for good grades.
- Maintain a good credit score: Credit rating is a key factor in determining how much insurance costs. Focusing on paying down debts and making timely payments can improve a low score and help consumers get a better auto policy rate.
- Raise your deductible: Increasing the deductible on an insurance policy will generally result in a lower monthly premium. Keep in mind that higher deductibles may mean lower monthly rates, but it also means more out-of-pocket expenses in the event of a claim.
- Improve your driving record: Drivers that have tickets, accidents or violations on their record will likely pay higher auto insurance premiums, but many insurance companies will offer a discount for passing a safe driving or driver’s education course.
Frequently asked questions
What is the best car insurance in Maryland?
The best car insurance in Maryland will vary depending on your specific needs. The best way to find the right provider for you is to get multiple quotes and compare the coverage, discount offerings and premium to find what suits you best.
What is the average cost of car insurance in Maryland?
The average cost of auto insurance in Maryland per year is $758 for minimum liability coverage and $1,783 for full coverage insurance. However, the cost of auto insurance premiums varies depending on multiple factors.
What factors affect my insurance premium?
Numerous factors impact your auto insurance premium, including age, geography, driving record, credit score, how often you drive and your annual mileage. Drivers should check with their insurance agent to find out more about what factors may impact their premium.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.