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Last updated on May 15, 2020

Best Maryland Car Insurance Companies

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Maryland has a higher than average annual premium for car insurance. So it makes sense that Maryland drivers want to save as much as possible when shopping for their insurance. We’ve reviewed the state’s top providers, and found Erie Insurance to have the best balance of cost and coverage. 

We compared financial strength, customer satisfaction, coverage options, and price to determine the best carriers for Maryland drivers. Additional carriers were evaluated and included below.

The 5 Best Car Insurance Companies in Maryland

 Erie InsuranceGeicoState FarmNationwideUSAA
 Our reviewOur reviewOur review
AM Best Financial Strength RatingA+A++A++A+A++
J.D. Power 2019 Overall Customer Satisfaction Score(Mid-Atlantic Region)5/54/53/52/55/5
Avg. Annual Premium$1,044$558$1,289$1,136$906

Quadrant car insurance rate data as of 07/01/2019

Erie Insurance


ERIE Insurance
ERIE Insurance


Pros

  • High customer satisfaction ratings
  • Cheaper than average

Cons

  • Doesn’t accept online accident claims

Erie Insurance is Maryland’s highest-rated provider in overall customer satisfaction. Erie offers its customers some of the cheapest rates in the state. Customers can save even more with the company’s discounts.

Those who prefer handling things online may not appreciate Erie Insurance’s lack of online capabilities. You can submit auto glass claims through the website, but you have to take care of all other business over the phone with an Erie Insurance agent. 

Geico


Geico

Pros

  • Intuitive website and mobile app
  • Well-priced auto insurance

Cons

  • Fewer than average local agents

Geico offers customers a great digital experience. The Geico website is very user-friendly and easy to navigate. Customers say the same about the Geico mobile app. You can access your insurance, contact roadside assistance, and submit photos alongside claims.

Geico also offers Maryland customers the cheapest average annual premium that we analyzed. Adding to the savings is its vast array of possible discounts. One issue some customers have is a lack of local agents. Since Geico focuses so greatly on its online offerings, there are fewer people to contact in person.

State Farm


State Farm
State Farm


Pros

  • Financially strong
  • Several discount options

Cons

  • More expensive

State Farm has a superior financial rating from AM Best. This means that the company is financially secure and very capable of paying out customer claims.

State Farm’s annual average premium is one of the more expensive ones we looked at. That said, there are several discounts available for Maryland drivers to offset the higher price of its policies.

Nationwide


Nationwide
Nationwide


Pros

  • On Your Side policy review
  • Thorough resource center

Cons

  • Lower customer satisfaction

Nationwide offers the On Your Side review, which is a free annual review of your policy. This allows Maryland auto insurance customers to assess whether their coverage still works best for them. Nationwide also offers a comprehensive resource center to help answer any questions customers have.

The overall customer satisfaction for Nationwide is below average, according to J.D. Power. The company only scored 2 out of 5 stars for the Mid-Atlantic Region.

USAA


USAA

Pros

  • Exceptional customer service
  • Competitive rates

Cons

  • Only available to the military community

USAA is only available to current military members, veterans, and their families. This means that not all Maryland drivers can consider it an option.

For those who are eligible, the company is an appealing choice. It rated very highly on the J.D. Power customer satisfaction survey. It also offers competitive rates, with one of the lowest average annual premiums that we looked at. 

The Cheapest Car Insurance Companies in Maryland

Largest Companies by Market Share in MarylandAverage Annual Premium 
GEICO$558
USAA$906
Erie Insurance$1,044
Nationwide$1,136
Progressive$1,147
State Farm$1,289
Allstate$1,505
Esurance$1,799
Metropolitan Insurance$1,805
Encompass$1,924

Car Insurance by Credit Rating

Credit Rating tierAverage Annual Premium 
Poor$1,912
Below Fair$1,635
Fair$1,428
Average$1,316
Good$1,218
Excellent$1,038
Average Across Credit Rating Tiers$1,425

Top 3 Cheapest Car Insurance Companies in Maryland

  • Geico – $558
  • USAA – $906
  • Erie Insurance – $1,044

Top 3 Most Expensive Car Insurance Companies in Maryland

  • Encompass – $1,924
  • Metropolitan Insurance – $1,805
  • Esurance – $1,799

The three cheapest car insurance companies in Maryland are Geico, USAA, and Erie Insurance. The three most expensive companies are Encompass, Metropolitan Insurance, and Esurance. We based our average rates on general profiles. To find the best coverage that your budget allows, we recommend reaching out to several companies for personalized quotes.

Guide to Car Insurance in Maryland

Maryland Minimum Liability

Minimum liability refers to the smallest amount of insurance you can purchase to legally drive. There are two categories of liability: bodily injury and property damage. These cover repair and medical costs for yourself and the other parties, if the police determine you’re at fault for an accident. 

In Maryland, minimum liability breaks down as:

  • $30,000 bodily injury coverage for one person
  • $60,000 bodily injury coverage for two or more people
  • $15,000 property damage coverage per accident

You’ll often see these numbers written as 30/60/15, the shorthand for minimum liability.

Don’t Settle for the Minimum

While minimum coverage may seem tempting, you should purchase the full amount that your budget allows for. If you’re in an accident involving a luxury car, chances are your minimum liability won’t cover all expenses. That means you’ll be making up the difference from your own pocket. If you’re prepared with a heftier policy, you’re less likely to be stuck with that bill.

How We Found the Best Maryland Car Insurance Companies

To find the best auto insurance in Maryland, we started with the state’s largest companies by market share. We analyzed their financial stability ratings from AM Best, S&P, and Moody’s. We paired this with customer satisfaction ratings from J.D. Power to determine the quality of service. Finally, we compared the coverage and discounts offered by each company. 

We worked with Quadrant Information Services to provide data on auto insurance rates by company and credit score. Quadrant makes this information available using rate data that insurers are required to file with the state Department of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes. 

Maryland Car Insurance Companies FAQ

What are the average auto insurance rates in Maryland?

The average cost of car insurance in Maryland is about $1,256. The premiums in Maryland are higher than the national average of $1,134.

What are the minimum requirements for car insurance in Maryland?

Maryland’s minimum liability coverage is 30/60/15.

How much auto insurance coverage should I purchase?

You should always purchase the highest amount that comfortably fits your budget. Minimum coverage can leave you paying out of pocket if you’re deemed the at-fault party in an accident. More comprehensive coverage is the best way to keep yourself and others protected.

About the Authors

Lorraine Roberte

Lorraine Roberte Contributing Writer

Lorraine Roberte is a South Florida-based personal finance writer. Her work has been published on sites such as Thrive Global, Elephant Journal, Red Tricycle and Tweak Your Biz.