Cheap Car Insurance Companies In Maryland

The average semiannual cost of car insurance in the state of Maryland is $927.79. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Maryland across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/2/2024

The Maryland car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in MD. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Maryland Minimum Liability Coverage

Maryland state law requires all drivers to carry minimum auto insurance coverage. The minimum liability coverage amounts in Maryland are:

• Bodily Injury Liability: $30,000 per individual and $60,000 per accident. This covers injuries and medical expenses for others involved in an accident caused by the insured driver.
• Property Damage Liability: $15,000. This covers damage to other vehicles and property resulting from an accident caused by the insured driver.

In addition to these requirements, Maryland requires drivers to have Personal Injury Protection (PIP) coverage to cover medical expenses for injuries suffered by the insured driver and any passengers in their vehicle. The minimum PIP coverage amount is $2,500 per individual.

Penalties for Driving Without Insurance in Maryland

In the state of Maryland, driving without insurance is illegal and carries both financial penalties and legal consequences. Maryland law requires all drivers to carry minimum liability insurance coverage on any registered vehicle. Driving without insurance is a misdemeanor criminal offense punishable by fines, license suspension, vehicle registration revocation, and possible jail time.

If you are caught driving without insurance in Maryland, you will likely face the following penalties:

• A fine between $150 and $1,000 for the first offense. Fines increase for subsequent offenses, potentially reaching $2,000.
• License suspension for at least 45 days and up to one year for the first offense. Subsequent offenses result in longer suspensions up to three years.
• Vehicle registration and license plate revocation for at least 45 days and up to one year. The vehicle registration will not be reinstated until you show proof of insurance and pay any fines.
• Court fees and surcharges of several hundred dollars on top of the base fine amounts.
• Possible jail time of up to 30 days for the first offense, and up to one year in jail for repeat offenses. However, jail time is generally reserved only for the most severe cases.

Auto Insurance Rates in Maryland

Maryland auto insurance rates vary considerably between drivers and insurance companies. Several factors influence the cost of car insurance in Maryland, including your driving history, vehicle type, credit score, age, gender, and location. However, there are some things you can do to help lower your rates.

The most significant factor impacting your auto insurance premiums is your driving record. Traffic violations, at-fault accidents, and drunk driving incidents will all cause your rates to increase. Maintaining a clean driving record for several years is the best way to keep your premiums lower.

The make, model, and year of your vehicle also impact rates. Newer vehicles and luxury brands tend to have higher insurance costs due to the expense of repairs and replacement parts. Consider purchasing a used economy vehicle to save on insurance.

Your credit score is another rating factor used by some insurers, though not all. People with higher credit scores typically pay lower premiums since they are viewed as lower risk. You can check your credit report and score for free once a year to identify areas for improvement.

Young drivers under 25 typically pay the highest car insurance rates due to their inexperience and higher accident rates. As you gain more years of safe driving, your premiums will likely decrease.

Low Cost Car Insurance Programs and Discounts in Maryland

Car insurance costs can add up quickly, but Maryland drivers have options to save money on premiums. Multiple programs and discounts are available for those who qualify.

• Maryland Auto Insurance Plan (MAIP) – This program provides coverage for high-risk drivers who have trouble obtaining standard insurance policies. Premiums are higher than average but can still be more affordable than other options. To qualify, you must be denied coverage by at least two standard insurers within 60 days.
• Discounts for Good Students – Insurers typically offer discounts of 15% to 25% for students who maintain a B average or higher. Proof of GPA is required, so retain report cards or transcripts. The discount applies until age 25 in most cases.
• Discounts for Multiple Policies – Bundling home and auto policies with the same insurer can result in savings of 5% to 15%. Some companies also offer multi-vehicle or multi-driver discounts for insuring more than one vehicle or driver on a single policy.
• Discounts for Defensive Driving Courses – Completing a defensive driving or accident prevention course can earn a discount of up to 10%, depending on the insurer and the length of the course. Keep your course completion certificate handy.
• Discounts for Senior Drivers – Drivers aged 55 and older often qualify for discounts due to lower risk profiles. However, not all insurers offer senior discounts so compare rates from multiple companies.

Maryland Car Insurance Statistics

Maryland residents are required by law to carry auto insurance coverage. According to the latest available statistics, Maryland drivers maintain some of the highest car insurance rates in the country. Here are some key facts:

• Collision coverage: The average annual premium for collision coverage in Maryland is $787, which is 68% higher than the national average of $468. Collision coverage repairs or replaces your vehicle if it’s damaged in an accident.
• Comprehensive coverage: Maryland drivers pay an average of $427 per year for comprehensive coverage, which is 63% more than the $262 national average. Comprehensive insurance covers damages from events other than collisions, like theft, vandalism, flooding and falling objects.
• Bodily injury liability: Drivers in Maryland pay an average of $557 per year for bodily injury coverage, compared to the national average of $384. This coverage helps pay for injuries that you cause to other people in an accident.
• Property damage liability: Marylanders pay an average of $321 annually for property damage liability insurance, compared to the $247 national average. This coverage helps reimburse others for property damage you cause in an accident.
• Uninsured/underinsured motorist coverage: Marylanders pay an average of $319 per year for uninsured/underinsured motorist coverage, much higher than the $236 national average. This coverage helps pay for your injuries if you’re in an accident caused by an uninsured or underinsured driver.

While Maryland’s higher population density and more congested roadways contribute somewhat to higher insurance rates, auto insurers point to fraud and high claim costs as major factors driving up premiums for Maryland drivers.

The Largest Maryland Car Insurance Companies

Allstate Insurance Company

Allstate is one of the largest insurance companies in the United States and the largest car insurance provider in Maryland. Allstate offers a wide range of insurance products for auto, home, life, and business. The company is known for bundling policies to offer customers discounts and has a strong reputation for customer service.

State Farm Insurance

State Farm is the second largest car insurance provider in Maryland. As the largest auto and homeowner’s insurer in the U.S., State Farm provides a full suite of insurance and financial services products. The company is known for offering competitive rates, multi-policy discounts, and superior customer service.

GEICO

GEICO is the third largest car insurance provider in Maryland. GEICO is well known for offering affordable rates and providing customers with 24/7 online services. The company has a strong reputation for quick and easy claims processing. GEICO offers a variety of insurance products including auto, motorcycle, RV, and boat insurance.

Progressive Insurance

Progressive is the fourth largest car insurance company in Maryland. Progressive is known for offering a wide range of coverage options and usage-based policies. The company has a strong reputation for innovation and using technology to provide customers with convenient self-service options.

Liberty Mutual Insurance

Liberty Mutual is the fifth largest car insurance provider in Maryland. The company offers a full suite of insurance products including auto, home, life and business insurance. Liberty Mutual is known for offering multi-policy discounts and superior customer service. The company has a reputation for paying claims quickly and fairly.

USAA

USAA provides insurance and financial services to military members, veterans, and their families. While USAA is not open to the general public, it is the sixth largest car insurance provider in Maryland due to its large military customer base. USAA is known for offering very competitive rates and superior customer service. The company has a strong reputation for paying claims accurately and promptly.