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Cheapest car insurance in Maryland for 2022

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The average cost of car insurance for Maryland drivers is $767 annually for minimum and $1,877 for full coverage car insurance. Maryland law requires drivers to carry at least a certain minimum coverage car insurance amount. Still, whether you are shopping for minimum or full coverage, there are price variations between carriers and good opportunities to comparison shop for savings.

If you are one of the many drivers searching for cheap car insurance, do not think you must choose minimum coverage or less-than-average customer satisfaction. Bankrate’s insurance editorial team has extensively researched insurance companies to help you obtain the best and most affordable car insurance to meet your needs. The coverage comparisons below can help you save money and secure cheap car insurance in Maryland.

The cheapest car insurance companies in Maryland

Bankrate analyzed data obtained from Quadrant Information Services to provide you with recent premium information for the major insurance companies in Maryland. Additionally, we have researched third-party resources such as AM Best and J.D. Power to identify auto insurance carriers that display exceptional financial strength and rank well for customer satisfaction.

Based on this research, the five cheapest car insurance companies in Maryland listed below have been identified as offering some of the cheapest average premiums in the state.

The cheapest companies for minimum coverage in Maryland

If you’re looking for the cheapest minimum coverage car insurance in Maryland, here are the five cheapest carriers, based on our assessment:

Car insurance company Average annual minimum coverage premium Average monthly minimum coverage premium
Nationwide $553 $46
USAA $604 $50
Geico $641 $53
Erie $660 $55
Penn National $738 $62

The cheapest companies for full coverage in Maryland

If you are looking for the cheapest full coverage car insurance for your vehicle in Maryland, here are the five cheapest carriers with affordable rates in this category:

Car insurance company Average annual full coverage premium Average monthly full coverage premium
Nationwide $1,232 $103
Penn National $1,525 $127
USAA $1,574 $131
Geico $1,627 $136
Progressive $1,696 $141

Events that can impact your cheap rates in Maryland

Life happens, and both expected and unfortunate unexpected events can impact your auto insurance premiums. These “bumps in the road” include adding a teen driver to your policy or dealing with an accident or serious traffic violation. Here are some things to consider if you are shopping around for auto insurance due to a recent event:

  • Adding a teen driver: Due to a lack of driving inexperience, carriers typically view teens as a greater risk behind the wheel. Statistics also show that teens are involved in more accidents than other age groups. As a result, insurance carriers charge higher premiums when a teen driver is on your policy. The good news is that carriers also offer certain discounts for this age group, such as a good student discount. Maintaining a clean driving record and good grades can help teens keep access to the best rates as they age and gain more driving experience.
  • Received a speeding ticket: A speeding ticket in Maryland will generally lead to a car insurance premium increase of around 10%, according to our research. Typically, insurers will maintain higher premiums under these circumstances for a period of three to five years. Don’t exacerbate your problem with additional tickets during this time. Don’t be afraid to shop around, either, as each insurance company deals with speeding tickets a bit differently.
  • Involved in an at-fault accident: An automobile accident may not only injure you and your passengers and damage your vehicle, but can also significantly impact your insurance premiums. When a Maryland driver is involved in an at-fault accident causing bodily injury and property damage, the driver may see premiums increase by around 38%. The impact of such an accident on insurance premiums can last several years depending upon the insurer and the severity of the accident.
  • Deemed a high-risk driver: A number of driving behaviors can cause insurers to consider you a high-risk driver, including accidents, serious traffic violations, driving without insurance or being convicted of a DUI. If you are characterized as a high-risk driver you may need to shop for carriers that specialize in high risk insurance, as some carriers may no longer insure you or may charge prohibitively high premiums.

Cheapest cities in Maryland for minimum coverage

Where you live within the state of Maryland can also impact your insurance rates. For example, if you live in a high crime area, insurers will factor in the likelihood that your vehicle can be vandalized and increase rates accordingly. As such, if you move, it is worthwhile to shop your current policy to find lower rates or cheap car insurance companies for your new location.

City Average annual minimum coverage premium Average monthly minimum coverage premium
Cumberland $556 $46
La Vale $556 $46
Potomac Park $556 $46
Bowmans Addition $556 $46

Cheapest cities in Maryland for full coverage

Full coverage insurance rates can also vary, sometimes significantly, depending on your ZIP code. Rate increases or decreases can depend on the number of claims in your area, such as weather-related claims or the number of accidents within an area.

City Average annual full coverage premium Average monthly full coverage premium
Fountainhead-Orchard Hills $1,497 $125
Robinwood $1,497 $125
Paramount-Long Meadow $1,497 $125
Mount Aetna $1,497 $125

Minimum coverage requirements for Maryland drivers

Maryland law requires that all drivers carry at least a minimum amount of coverage for bodily injury liability and property damage liability. This requirement is to ensure that there is at least some funding for the costs that others incur when you damage their vehicle or injure them in accidents where you are at fault. Here are the minimum auto insurance requirements in Maryland:

  • Bodily injury liability: $30,000 per person
  • Bodily injury liability: $60,000 per accident (for two or more people)
  • Property damage liability: $15,000 per accident

These limits may not sufficiently protect you in some situations. You will want to base your actual insurance coverage limits upon the value of your assets to be protected and not on the state limit minimums if possible.

Here is how to find (and keep) cheap car insurance in Maryland

Knowing how to find and keep cheap car insurance in Maryland is a great way to keep premiums in check. There are a number of strategies and tips that will help ensure that you secure and keep the most competitive and affordable auto insurance rates in Maryland.

  • To obtain cheap auto insurance in Maryland, gather quotes from several carriers, like those listed above. Besides pricing, you can compare coverage options, discounts, customer satisfaction ratings, financial strength ratings and other factors important to you. Then, you can decide which carrier fits your budget and your individual auto insurance needs. You can get a good sense of what works best for you. Be certain you review all available discounts from each of the carriers.
  • You can do several things to help keep affordable Maryland car insurance coverage. Maintaining a clean driving record makes you eligible for certain discounts, like safe driving and accident forgiveness. Bundling your home and auto insurance is usually one of the largest discounts available from insurers, and it may make it easier for you to have both policies with one company.

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 premiums to find the option that suits you best.

What is the average cost of car insurance in the U.S.?

The average cost of auto insurance in the U.S. is $565 annually for minimum liability coverage and $1,674 per year for full coverage insurance. Drivers in Maryland pay more than the national average, with average annual premiums of $767 for minimum coverage and $1,877 for full coverage. However, the cost of auto insurance premiums varies depending on multiple factors. Your premium may be higher or lower than the average premiums.

What factors affect my insurance premium?

Numerous factors impact your auto insurance premium, including your age, ZIP code, driving record, credit score, annual mileage and how often you drive. Each auto insurance company has its own rating system and may weigh these factors differently. That is why the cheapest company for one person may not be the cheapest for someone else.

How can I buy auto insurance online?

Purchasing auto insurance online is often a simple and cheap way to obtain coverage. Most reputable car insurance companies provide online tools to obtain quotes based on your specific needs. You can obtain a series of online quotes to compare from the comfort of your home. Bankrate can help guide you through this process.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 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 coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Written by
Rick Hoel
Insurance Contributor
Rick Hoel is an international business attorney and legal and insurance writer for Bankrate as well as Reviews.com and Accessibility.com. Over the last several years, he has covered topics dealing with personal and commercial insurance and technology and the law. Rick is General Counsel and Director of Risk Management and sits on the Board of Power Stow Americas Inc., a subsidiary of Power Stow A/S in Denmark, the world leader in the supply of tracked conveyor systems to the airline industry.
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