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 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:
Erie Insurance offers some of the lowest rates in the industry, often a few hundred dollars cheaper than the Maryland state average, according to the Insurance Information Institute (III). 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.
State Farm offers Maryland drivers plenty of opportunities to save with discounts such as accident-free, defensive driving, driver education, vehicle safety and good student. Its Drive Safe and Save program rewards safe drivers up to 30% off their policy for using OnStar or the mobile app to track their driving. Drivers with multiple cars in their household insured by State Farm and those who bundle policies such as homeowners, renters or life insurance with their auto policy can also save money.
The company is known for high customer satisfaction, rating 836 out of 1000, and fourth overall in the 2020 J.D. Power auto insurance satisfaction study.
Allstate offers numerous discounts, including new car replacement, multiple policy, young driver/teen, prepayment and early signing. It also offers a vanishing deductible program that reduces your deductible each year you do not file a claim and rideshare coverage if you drive for Uber or Lyft.
According to J.D. Power, the company typically ranks slightly below average for overall customer satisfaction but above average for claims satisfaction.
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 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 rates, 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?
Amica Mutual, Geico, Progressive, State Farm and USAA offer the best car insurance in Maryland. Each of these carriers also provides a variety of discounts to help keep costs down.
What is the average cost of car insurance in Maryland?
The average cost per year is $858 for basic liability coverage and nearly $1,800 a year 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 and how often and how far you drive. Drivers should check with their insurance agent to find out more about what factors may impact their premium.