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Maryland has higher car insurance requirements than most states — its average rate of $173 per month is higher than the national average partly because of this.
Going without the minimum coverage isn’t the best idea since it can result in expensive penalties. Fortunately, there are still savings out there — and the best way to save is by comparing quotes from multiple companies.
We analyzed quotes from dozens of the best Maryland auto insurance companies to find the lowest rates for different driving profiles, coverage levels, and other rating factors. Keep reading to find out which companies offer the cheapest auto insurance for drivers like you.
Key Takeaways:
- GEICO is often the cheapest company in MD for different ages and driver profiles.
- Maryland drivers must have 30/60/15 liability insurance, plus personal injury protection and uninsured/underinsured motorist coverages.
- Driving without insurance could mean up to $2,500 in fines, vehicle registration suspension, and jail time.
In This Article:
How Much Is Car Insurance in Maryland
Maryland drivers pay an average monthly cost of $173 for car insurance. Maryland’s average rate is 34% higher than the national average, and the neighboring states of Delaware, Pennsylvania, Virginia, and West Virginia all boast cheaper average rates.
Let’s take a closer look at how its rates stack up.
| State | Average Rates | State Rank |
|---|---|---|
| Maryland | $173 | 44th cheapest |
| Delaware | $164 | 42nd |
| Pennsylvania | $142 | 36th |
| Virginia | $113 | 24th |
| West Virginia | $109 | 19th |
| National average | $129 | – |
Higher minimum coverage requirements and more expensive vehicle repair costs contribute to Maryland being one of the most expensive states in the country for auto insurance. But the good news is we’ve found the cheapest insurance companies in Maryland for different driver profiles, as outlined in the sections to come.
Find the Cheapest Rates Maryland Has to Offer
Maryland Auto Insurance Requirements
Maryland has the following auto insurance requirements:
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
- Identical coverage limits for uninsured motorist coverage
- $2,500 in personal injury protection (PIP)
Although Maryland allows you to waive PIP, John Scalley, agency owner of Scalley Insurance Agency in Millersville, Maryland, doesn’t recommend it.
“You can use PIP to cover medical bills and lost wages if you’re injured in an accident as a driver, passenger, or pedestrian, regardless of fault,” Scalley says. “The overall cost of PIP is small compared to other coverage on an auto policy. PIP provides first-dollar coverage, which can go towards your health insurance deductible.”
Maryland’s Cheapest Car Insurance Companies
The state average auto insurance rate in Maryland is $173 per month. With these higher-than-average premiums, finding ways to save is crucial.
Let’s take a look at which companies offer the cheapest average rates in all of Maryland.
| Company | Monthly Premium |
|---|---|
| GEICO | $76 |
| Kemper | $105 |
| Erie | $130 |
| Penn National | $143 |
| State Farm | $144 |
GEICO offers some of the cheapest car insurance rates in the Old Line State, averaging $76 monthly. However, it might not be the cheapest option for everyone.
We analyzed Maryland auto insurance companies to find the lowest rates for the top rating factors — such as age and driving record — in the sections below.
Our team analyzed thousands of rates from dozens of the top insurance companies in Maryland. Using that data, we listed the five cheapest options for Maryland drivers based on several key factors, such as age, coverage level, driving history, and more. All the rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in Maryland. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.
Cheapest State-Minimum Car Insurance: GEICO
How much insurance coverage you choose affects how much you pay in Maryland. And the minimum mandated coverage levels in your state make up the cheapest possible policies.
Maryland drivers are required to carry at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $15,000 in property damage liability coverage. The state also mandates the same coverage amounts in uninsured motorist coverage, as well as $2,500 in personal injury protection.
We’ll go into those requirements more later, but first, let’s take a look at which companies offer the cheapest state-minimum liability coverage in Maryland.
| Company | Monthly Premium |
|---|---|
| GEICO | $54 |
| Erie | $93 |
| Cumberland Mutual | $96 |
| Kemper | $97 |
| Penn National | $109 |
GEICO is the cheapest insurance company for state-minimum coverage car insurance, with average rates of just $54 per month. Minimum coverage offers basic protection if you’re on a budget, but it doesn’t protect your vehicle.
Low-income and uninsured drivers can also get minimum liability coverage from the government-backed Maryland Automobile Insurance Fund (MAIF). However, average rates are higher, at $102 monthly.
Cheapest Full-Coverage Insurance: GEICO
Buying full coverage is more expensive, but it protects you and your vehicle if you’re involved in an accident, regardless of fault. Full coverage usually includes state-minimum liability, comprehensive, collision, and, in Maryland, personal injury protection and uninsured motorist coverage.
| Company | Monthly Premium |
|---|---|
| GEICO | $97 |
| Kemper | $114 |
| Erie | $167 |
| Penn National | $178 |
| State Farm | $178 |
You can get the lowest rates for full coverage from GEICO, which averages $97 per month. GEICO is one of the few insurers offering mechanical breakdown insurance, providing valuable coverage for drivers on a budget.
Kemper is another cheap option, costing only $17 more per month than GEICO.
Cheapest Car Insurance in Maryland by Age
Age is one factor that greatly affects your auto insurance rates in Maryland. Young drivers are the riskiest to insure since they have the least driving experience, which means they pay more than other age groups for auto insurance.
We compared different age brackets to help Marylanders find the cheapest Maryland insurance company for each group.
Teens
Teen drivers are the most expensive age group to insure. Despite making up just 5.1% of licensed drivers, young drivers were involved in 8.5% of fatal accidents in 2020, according to NHTSA data.
However, teens who maintain a clean driving record typically see their rates drop around age 25.
The table below shows Maryland’s cheapest car insurance companies for 18-year-old drivers.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $169 | $324 |
| Erie | $208 | $384 |
| Kemper | $253 | $437 |
| State Farm | $288 | $494 |
| Progressive | $316 | $495 |
Maryland teens can find the cheapest rates for both liability and full coverage from GEICO. It offers savings opportunities for young drivers, such as discounts for good grades, clean driving records, and being part of student organizations.
Seniors
Retirement is an exciting time for many reasons, and approaching retirement age has the added incentive of the cheapest car insurance rates around. Maryland seniors can get even lower rates if they drive less than when they commuted to work.
The table below shows the most affordable insurance companies for 65-year-old drivers in Maryland.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $60 | $107 |
| Cumberland Mutual | $92 | $182 |
| Erie | $97 | $176 |
| Kemper | $99 | $182 |
| Penn National | $109 | $173 |
Retirees looking to save as much money as possible should consider GEICO. With average rates of just $60 per month for liability-only and $107 for full coverage, GEICO can help keep your budget in check. Some can save even more with GEICO’s Prime Time contract, which is available to Maryland drivers 50 and older with no recent accidents or moving violations.
Cheapest Maryland Insurers by Driving Record
Your driving record is the most important factor determining your auto insurance policy rates. Traffic violations and accidents can cause your premiums to increase — though the amount can vary by insurance company.
If you’ve recently gotten an infraction on your driving record, knowing which Maryland car insurance company is the cheapest can help keep rate increases to a minimum.
We break down the cheapest Maryland auto insurance companies for each type of driving record below.
Drivers with clean records
Being a good driver is the best way to get low rates in Maryland. A good driver has a clean driving record with no accidents or tickets in the last three to five years.
Let’s take a look at which companies offer the best rates for Maryland drivers with clean records.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $54 | $97 |
| Erie | $93 | $167 |
| Cumberland Mutual | $96 | $191 |
| Kemper | $97 | $114 |
| Penn National | $109 | $178 |
GEICO once again offers cheap car insurance in Maryland if you’re a good driver. Practicing safe driving habits can pay off even more if you participate in GEICO’s DriveEasy program. This telematics program tracks your driving habits and rewards you for making safe decisions behind the wheel.
Drivers with a recent ticket
Getting a speeding ticket or moving violation increases your car insurance rates by an average of 23%, according to Compare.com data. We analyzed rates for Maryland drivers with one speeding ticket to find the cheapest insurance companies, as shown in the table below.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $67 | $122 |
| Erie | $106 | $192 |
| State Farm | $118 | $192 |
| Kemper | $119 | $140 |
| Cumberland Mutual | $133 | $269 |
If you have a recent speeding ticket conviction, GEICO might be the best option for cheap auto insurance in Maryland. Its average rates are $67 per month for state-minimum policies and $122 for full coverage.
To avoid further rate hikes, prevent tickets by obeying traffic laws, driving at a safe speed, and avoiding distracted driving.
Drivers with a recent accident
If you cause an accident in Maryland, expect a rate increase at your next renewal. The national average premium increase after an at-fault accident is 43%, according to Compare.com data.
The table below shows Maryland’s most affordable insurance companies for a driver with one at-fault accident.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $89 | $165 |
| Cumberland Mutual | $128 | $225 |
| Erie | $134 | $241 |
| State Farm | $135 | $218 |
| Progressive | $159 | $254 |
GEICO also has the cheapest rates for Marylanders after an at-fault accident. If you have a clean driving record for at least five years before the accident, you could even earn accident forgiveness from GEICO. This benefit can prevent a surcharge on your insurance policy, avoiding the large rate increase many drivers see after causing an accident.
Drivers with a DUI
A DUI conviction in Maryland comes with a rate increase and other severe consequences. You can face up to a six-month license suspension and may even get dropped by your insurance company.
National average rates increase by an average of 92% after a DUI conviction, according to Compare.com data, so finding the cheapest rates is even more important if you’ve recently been convicted of driving under the influence.
The table below shows the cheapest auto insurance companies for a Maryland driver with one DUI.
| Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $74 | $136 |
| Kemper | $97 | $115 |
| Erie | $106 | $192 |
| State Farm | $118 | $192 |
| Cumberland Mutual | $133 | $269 |
GEICO offers the cheapest liability-only car insurance rates for Maryland drivers with a DUI on their record, averaging $74 monthly. On the other hand, Kemper is the most affordable for full coverage, with average rates at $115 per month. Kemper offers coverage perks to customize your full-coverage package, such as vanishing deductible, gap insurance, and new car replacement.
The Cheapest Cities for Car Insurance in Maryland
Where you live can affect how much you pay for car insurance. Medical expenses, vehicle repair bills, weather events, and crash statistics can cause rates to vary substantially from one ZIP code to the next.
Let’s take a look at 10 Maryland cities with the cheapest average rates.
| City | Monthly Liability Rates |
| Frederick | $67 |
| Bethesda | $69 |
| Hagerstown | $72 |
| Salisbury | $78 |
| Rockville | $81 |
| Elkton | $82 |
| Westminster | $83 |
| Germantown | $84 |
| Lutherville Timonium | $86 |
| Gaithersburg | $91 |
The Old Line State’s cheapest cities for auto insurance are Frederick ($67 per month), Bethesda ($69), and Hagerstown ($72). These cities have lower population densities than places like Laurel or College Park, which can contribute to their cheaper car insurance premiums.
Frederick has significantly lower motor vehicle theft rates than cities like Baltimore and a much smaller population, which helps make it the cheapest city in Maryland for auto insurance.
Maryland’s Best Auto Insurance Companies in 2024
No single insurance company is best for every driver. Many factors affect what you pay for auto insurance, so your rate and coverage options will vary by insurance company. That said, the companies we chose may not be the best for every situation, so you should always shop around and compare quotes to find the best policy for you.
We chose the following three companies based on a combination of factors, including average rates, coverage options, available auto discounts, and customer ratings and reviews.
Best overall value: GEICO
Average premium: $76 per month
Compare.com rating: 4.65 out of 5
J.D. Power Customer Satisfaction Index: 818 out of 1,000
GEICO offers a wide variety of insurance products and affordable rates. It also has the cheapest car insurance policies for Maryland drivers, according to our analysis. But the company scores lower than the industry average for customer satisfaction and claims satisfaction.
The company has affordable coverage for just about every driver profile, including teens and seniors. GEICO offers a variety of discounts, including vehicle equipment, multi-car, and good driver discounts, to help you save even more on your insurance costs.
Best for discounts: State Farm
Average premium: $144 per month
Compare.com rating: 4.90 out of 5
J.D. Power Customer Satisfaction Index: 843 out of 1,000
State Farm may not be the cheapest insurer, but it’s among the top insurers in the United States. The company has an above-average J.D. Power customer service satisfaction score and positive reviews for its mobile app. State Farm also offers some of the best discounts in the industry.
The insurer is especially affordable for teen and young drivers in Maryland — its liability and full-coverage rates are the fourth-cheapest option, according to our analysis. Maryland drivers can lower their auto insurance premiums by enrolling in one of its telematics programs (Drive Safe & Save and Steer Clear) or by taking advantage of discounts, including accident-free, good student, and student away-at-school discounts.
Best for drivers with spotty records: Progressive
Average premium: $109 per month
Compare.com rating: 4.73 out of 5
J.D. Power Customer Satisfaction Index: 814 out of 1,000
Progressive is an affordable option for high-risk drivers in Maryland with an at-fault accident, speeding ticket, or DUI on their records. Its rates for teen drivers are also competitive, but the company rates low for overall customer satisfaction, according to J.D. Power.
You can find great coverage options and save with the insurer’s teen driver and good driver discounts. Progressive also rewards you for safe driving through its Snapshot program and accident forgiveness if you maintain a clean driving record.
How to Get Cheap Car Insurance in Maryland
Follow these five tips to get cheaper car insurance in Maryland:
- Improve your credit score. “Data proves that drivers with better credit tend to have fewer claims,” says Scalley. Raising your credit score can save you as much as $150 per month on your insurance premiums, according to Compare.com data.
- Drive fewer miles. Driving less can lower gas costs and help keep your insurance premiums low.
- Bundle your policies. Scalley says, “You can bundle your car insurance with home insurance, life insurance, business insurance, or umbrella coverage to get large discounts.”
- Raise your deductibles. “Increasing your comprehensive and collision deductibles can lower your premiums,” Scalley adds.
- Shop frequently and compare quotes. Comparing car insurance quotes from different companies can help you get the best rate in Maryland.
See Maryland’s Best Rates
More About Maryland Car Insurance
Maryland requires more coverages than some other states, which is why its premiums are more expensive. With that said, you don’t want to skimp on coverage and should consider buying even higher limits to protect yourself financially.
Let’s look at Maryland’s penalties for driving without insurance and SR-22 requirements.
Penalties for driving without auto insurance in Maryland
Even though auto insurance is required in Maryland, an estimated 14.1% of drivers go without it, according to the Insurance Information Institute. The Maryland MVA has steep penalties for driving without auto insurance:
- Vehicle registration suspension with a $25 restoration fee
- $150 fine for the first 30 days, $7 per additional day
- Up to one year of jail time
- $1,000 fine
You can only register new vehicles or restore your suspended registration once you’ve paid all penalties. And if you’re caught again, your jail time can increase to up to two years.
SR-22 auto insurance in Maryland
Maryland is one of the few states that don’t require you to file an SR-22 form with the Motor Vehicle Administration. In other states, insurance companies must provide this form to the state to prove you have minimum auto insurance coverage.
But if you move to Maryland from another state with an SR-22 requirement, you must still comply with your prior state’s SR-22 rules. Ohio, for example, requires an SR-22/bond to be written for the state to fulfill your suspension requirement.
Maryland Auto Insurance FAQs
Getting cheap car insurance in Maryland can be easy when the right information is available. We answered some of the most common questions Marylanders ask about auto insurance.
Which company typically has the cheapest car insurance in Maryland?
GEICO, Kemper, Erie, Penn National, and State Farm are the cheapest auto insurance companies in Maryland, according to Compare.com data. Getting quotes from at least three Maryland insurance companies can help you find the cheapest company for your unique profile.
How much is car insurance in Maryland?
The average cost of car insurance in Maryland is $173 per month, according to Compare.com data. But many personal factors, such as your age, claims and driving history, credit score, and marital status, can affect your cost of auto insurance.
Why is car insurance so expensive in Maryland?
Car insurance rates can increase for a number of reasons, including inflation, rising repair and parts costs, and costs associated with totaled vehicle claims. Maryland’s higher insurance requirements are a big contributor to its higher rates.
What are some of the best car insurance companies in Maryland?
We found that some of the best car insurance companies in Maryland include GEICO, Kemper, and Erie. Each insurer offers affordable premiums below the state’s monthly average of $173. These insurers also have solid coverage options, a variety of discounts, and high Compare.com ratings.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Rating Methodology:
Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:
- Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
- Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
- Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
- Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
- Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.
Sources
- CarMD, “2022 State Repair Cost Rankings,” Accessed May 15, 2024.
- Insurance Information Institute, “Automobile Financial Responsibility Laws By State,” Accessed May 15, 2024.
- Maryland Department of State Police, “Crime in Maryland 2020 Uniform Crime Report,” Accessed May 15, 2024.
- Maryland Department of Transportation, “Maryland Impaired Driving Laws,” Accessed May 15, 2024.
- Maryland Insurance Administration, “A Consumer Guide to Auto Insurance,” Accessed May 15, 2024.
- National Highway Traffic Safety Administration, “Young Drivers Traffic Safety Facts 2020 Data,” Accessed May 15, 2024.
- World Population Review, “Maryland Cities by Population (2024),” Accessed May 15, 2024.
- Maryland Insurance Administration, “Insurance FAQs,” Accessed May 15, 2024.
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