Maryland drivers pay, on average, about $767 annually for minimum coverage car insurance. If they so choose, drivers in Maryland can obtain full coverage for an average price of $1,877 per year. Maryland law requires drivers to carry certain minimum levels of car insurance coverage, but whether you are shopping for minimum or full coverage, there are price variations between carriers and good opportunities to comparison shop for savings.
The insurance with the cheapest rates doesn’t automatically equate with minimum or inadequate coverage. Bankrate’s insurance editorial team has done extensive research 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 has partnered with Quadrant Information Services to obtain up-to-date premium information for the major insurance companies in Maryland. Additionally, we have researched third party resources such as A.M. Best and J.D.Powers to identify automobile insurance carriers that display 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 auto insurance in Maryland, here are the five cheapest carriers:
|Car insurance company||Average annual minimum coverage premium||Average monthly minimum coverage premium|
The cheapest companies for full coverage in Maryland
If you are looking for full insurance coverage 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|
Events that can impact your cheap rates in Maryland
Life happens, and both expected and unfortunate unexpected events can have an impact on 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, teens are typically viewed by carriers as being 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 good student rates. As your teen gets older and develops a clean driving record, rates will decrease.
- Received a speeding ticket: A speeding ticket in Maryland will generally lead to a car insurance premium increase of over 10%. 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 as much as 38%. The impact of such an accident on insurance premiums can last up to five years depending upon the insurer and the severity of the accident.
- Deemed a high-risk driver: A number of factors will lead to an insurer treating you as a high-risk driver, including accidents, serious traffic violations, driving without insurance, or general risk factors, like teen driving or having bad credit. While you may not be immediately deemed a high risk driver by all carriers, if you are characterized as such, (for example, due to being convicted of a DUI) you will need to look at different options. 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|
Cheapest cities in Maryland for full coverage
Full coverage insurance rates can vary, sometimes significantly, depending upon the cost of living and related cost of repairs in the ZIP code where you live. This can be an important factor for younger families who are moving to larger homes or new neighborhoods as incomes increase.
|City||Average annual full coverage premium||Average monthly full coverage premium|
Minimum coverage requirements for Maryland drivers
Maryland law requires that all drivers carry basic liability coverage (“minimum coverage insurance”) for bodily injury liability and property damage liability. This requirement is to ensure that there is 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: $30,000 per person
- Bodily injury: $60,000 per accident (for two or more people)
- Property damage: $15,000 per accident
These limits may not sufficiently protect you in some situations. You will want to base your actual insurance 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
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 the cheapest car insurance in Maryland, the first step is to comparison shop. By obtaining several quotes from auto insurers, like those listed above, you can get a good sense of what works best for you. Be certain you review all available discounts from each of the carriers.
- In order to keep you affordable coverage, there are a number of steps you can take. For starters, you should work to be a safe driver and maintain a clean driving record. Your personal credit score is also a factor carriers use to set rates, so pay attention to your score and take necessary steps to keep it from dropping.
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 the online tools to obtain quotes based upon 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.
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.