With Maryland’s high traffic density, frequent auto thefts, and many uninsured drivers, the state’s typical auto insurance premium is about $107 above the national average. Of course, that varies depending on many factors. If you live in a city, have a history of accidents, or drive a commonly stolen vehicle, you could see your costs rise dramatically.
That said, it is possible to score a below-average rate as well. You just have to do your homework to find out which company offers you the best deal on the highest level of coverage. We’ve done some of the legwork for you, but you’ll still have to compare quotes to find out which will offer you the most coverage at the best price.
How We Found the Best Maryland Auto Insurance
We used a similar methodology to the one in our national auto insurance review. First, we determined which were the largest companies in the state by market share. Then, we checked with financial strength ratings agencies like A.M. Best to ensure that they would have the resources to pay out when you need to file a claim. After that, it came down to what coverage options and endorsements each company has to offer.
We made sure they have all the basic coverages a driver will need, and we gave bonus points for unique protections that can’t be found elsewhere. We also looked into customer satisfaction ratings from J.D. Power and Consumer Reports to ensure that there won’t be any unpleasant surprises when the time comes to file a claim. Then, we called up local agents and got some quotes for ourselves to get a sense of their pricing and discounts.
Cheapest Car Insurance Companies in Maryland
Average Annual Premium by Company
|Car Insurance Companies||Average Annual Premium|
Quadrant car insurance rate data as of 07/01/2019.
Average Annual Premium by Credit Tier
|Credit Rating Tier||Average Annual Premium|
|Average Across Credit Rating Tiers||$1,425|
Quadrant car insurance rate data as of 07/01/2019.
The cheapest auto insurance companies in Maryland are GEICO, USAA, and Erie Insurance. Compared to the national average, Maryland has higher than average premium prices. Maryland is one of the smallest states by area, and also has one of the highest population densities in the country. This means cramped drivers and lots of them, increasing the risk of accidents. This population density rises even more if you are located in a city like Baltimore. Cities are also areas where car crimes, like theft or vandalism, become more likely. Be sure to look into options like comprehensive coverage to keep your car as worry free as possible.
The 4 Best Auto Insurance Companies in Maryland
Erie Insurance gave us our cheapest quote in Baltimore, and its rates are usually pretty affordable throughout the rest of the state as well. Unfortunately, there aren’t many discounts, so there isn’t much you can do to lower your rate if it’s high. You can save by bundling home and auto, being a safe driver, paying in full, and having safety devices installed on your vehicle, but beyond that, your only option for lowering premiums is choosing a higher deductible.
There are several endorsements available to help you customize your policy, including several that you won’t find with most other insurers. These include pet injury coverage, property protection coverage and new car replacement. You can also sign up for Diminishing Deductible. Every year you go without an accident, your collision deductible will decrease by $100 up to a maximum discount of $500.
The one area where Erie falls a little short is with its liability coverage limits. While companies like State Farm let you purchase up to 500/500/500, the most you can get with Erie is 250/500/100. In the case of a severe accident, this may not be enough coverage, so if you’re interested in higher limits, you may be more comfortable with State Farm.
According to the J.D. Power and Consumer Reports surveys, Erie is one of the best insurance companies you can work with. It received a perfect 5/5 from J.D. Power and a 94 from Consumer Reports — far and away the highest ratings on this list. Hopefully, you won’t ever have to file a claim, but if you do, these ratings are a good indication that the process will be smooth and headache-free.
State Farm gave us our most expensive quote, coming in about $150 more expensive than Erie’s. Those higher premiums translated to a lower score for customer satisfaction from J.D. Power — 3/5 compared to Erie’s 5/5. Still, State Farm boasts an impressive A++ financial rating from A.M. Best, meaning you can feel completely confident in its ability to pay out any claims. And while it’s known for being a little pricier than the other companies on this list, but it may still be worth a look if you’re interested in a policy with high liability coverage limits. You can purchase up to 500/500/500 coverage, which should be enough to cover even the most serious accident.
State Farm doesn’t offer as many endorsements as some of the other companies on this list, but it does have ridesharing coverage for Uber and Lyft drivers, and collision and comprehensive coverage for your vehicle. Like all insurers, State Farm requires you to pay a separate deductible for this. Comprehensive options range from $50 to $2,000, but the minimum collision deductible is $200, which is high compared to the rest of the industry.
There are also some discounts available to help you bring your costs down. There are standard savings, like bundling home and auto,, insuring multiple vehicles and maintaining a clean driving record. Young drivers can reduce their rates by being a good student, being a student away at school, and completing a driver training program. Signing up for State Farm’s Drive Safe & Save or Steer Clear programs will also net you some savings.
Allstate is another good choice if you’re interested in a policy with high coverage limits. You can purchase up to 500/500/500 of liability coverage, which is the most that any insurance company offers. While Allstate earned an impressive A+ financial stability rating from A.M. Best, it was in the middle of the pack when it came to customer satisfaction, receiving an 88/100 from Consumer Reports and a 3/5 from J.D. Power.
Collision and comprehensive coverage is also available and may be required by your lender if you have a lease or loan on the vehicle. There are 11 deductible options, ranging from $50 to $2,000, and you can opt for no comprehensive deductible if you’d like.
Allstate was our second-most affordable quote, coming in just $12 per month higher than Erie. It’s able to keep its rates pretty affordable thanks to its many discounts. There are savings for new car owners, vehicle safety features, paperless billing, enrolling in autopay, and bundling home and auto. If your driving record qualifies you for Allstate’s Safe Driving Club, you’ll earn additional savings as well.
In addition to having the most discounts, Allstate also holds the record for the most endorsements. Some of its most impressive offerings are custom parts coverage, new car replacement and property protection, which are pretty rare in the industry. These options do cost extra, however, so your premiums will be higher if you choose to add them.
Nationwide scored in the middle of the pack in our quote analysis, and its minimum deductibles are high compared to the other companies on this list. While many companies enable you to choose no deductible for comprehensive claims, Nationwide requires at least $100 and collision deductibles start at $250. Deductible options go as high as $5,000, so Nationwide is a good choice if you’re willing to accept a higher deductible in exchange for much lower premiums.
Nationwide offers some unique discount options, including its Family Plan. This allows all members of your household to take advantage of any discounts that you’ve earned. It’s a great option for families with teen drivers who are often expensive to insure. Like Erie, Nationwide also has a Vanishing Deductible endorsement that lowers your deductible by $100 every year you go without an accident (up to a maximum discount of $500).
While Nationwide didn’t perform badly in J.D. Power and Consumer Reports’ surveys, its customer service was notably a step below the rest. It received a 3/5 from J.D. Power for overall customer satisfaction, and Consumer Reports gave it an 88, mostly based on its policy offerings and price. But this isn’t a guarantee that you’ll run into problems when you need to file a claim.
Guide to Maryland Auto Insurance
Uninsured drivers are a big problem in Maryland
If you’re caught without insurance, you’ll be fined $150 for the first 30 days and $7 per day for every day thereafter. You could also lose your vehicle’s registration or even your license. But that doesn’t stop more than 12% of the state’s drivers from flouting the law.
This is a red flag for insurance companies because even if you are not at fault, your insurance company could still end up paying for the damages if you get into an accident with an uninsured driver.
Make sure you purchase enough uninsured and underinsured motorist coverage. Try to go with more than the minimum 30/60/15 coverage required by law. A good rule of thumb is to purchase as much uninsured/underinsured motorist coverage as your liability coverage.
Purchase comprehensive coverage
Maryland has the sixth-highest rate of auto thefts in the nation, so you should make sure you purchase comprehensive coverage. If you have a lease or loan, your lender will require it of you, but it’s a good idea anyway. Comprehensive coverage pays to repair or replace your vehicle if it was damaged in a non-collision-related accident. It also covers auto thefts. Theft is especially common in cities, so if you live in one, you can expect your auto insurance rates to be much higher than someone who lives in a rural area.
- Honda Accord
- Dodge Caravan
- Toyota Camry
- Honda Civic
- Nissan Altima
- Ford Pickup (Full Size)
- Toyota Corolla
- Hyundai Sonata
- Chevrolet Pickup (Full Size)
- Jeep Cherokee/Grand Cherokee
If you drive one of these vehicles, you can also expect to see higher auto insurance rates.
You can waive your personal injury protection (PIP)
Maryland state law requires drivers to purchase $2,500 of personal injury protection (PIP), but there is an option to waive this if you’d like to reduce your premiums. You may only refuse coverage for yourself, any drivers listed on your policy, and family members 16 and older. Children under 16 and pedestrians struck by a vehicle are still entitled to collect PIP even if you waive it for yourself.
Think carefully before you give it up, though. PIP pays for medical expenses and lost time at work due to a car accident, even if you were the one at fault. Your traditional auto insurance policy doesn’t do this. Medical bills get expensive quickly, and while you might be saving a little on your auto insurance premiums each month, you could end up costing yourself a lot in the long term if you get injured in an accident.
If you do decide to forego PIP coverage, you must fill out a waiver and submit it to the Maryland Department of Insurance.
Maryland Auto Insurance FAQ
What are average auto insurance rates in Maryland?
Maryland’s auto insurance rates are on the higher side — you’ll pay about $1,116 per year, compared to $1,009 in the rest of the country. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. You can use our tool at the top of the page to find your best rates.
What are Maryland’s minimum auto insurance requirements?
In Maryland, you must have at least:
- $30,000 bodily injury coverage per person
- $60,000 bodily injury coverage per accident
- $15,000 property damage coverage per accident
This is often abbreviated as 30/60/15 coverage. Maryland is one of the few states to also require its residents to carry uninsured and underinsured motorist coverage in the same quantities listed above. Residents must also purchase $2,500 of personal injury protection (PIP), though this can be waived under certain conditions.
How much coverage should I purchase?
Maryland’s minimums are high compared to the rest of the nation, but that doesn’t mean you should stop there. It’s not uncommon for car accidents to exceed the state minimum coverage, especially if someone is injured. Our recommendation: Purchase as much liability coverage as you can comfortably afford, so you won’t be on the hook financially in the event of an accident.
If you’re looking to save on your auto insurance, don’t skimp on coverage; shop around instead. Every company looks at the same factors when determining premiums — your location, your driving record, your vehicle — but they weigh them all differently, and that can result in very different prices.
The Best Maryland Auto Insurance: Summed Up
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 insurers are required to file with state Departments of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.