The best, cheapest car insurance in Maryland

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Best car insurance company in Maryland

In Maryland, the average premium for car insurance is $1,746 a year or $145 a month, which is the 32^nd highest in the country – Louisiana was number one.

For drivers looking for cheap car insurance in Maryland, GEICO, Nationwide, Travelers, Kemper Insurance and others on our list are great options, offering plenty of coverage options at affordable rates.

Our research found Erie Insurance offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. Erie Insurance was our top scorer and was awarded 4.37 out of 5 stars.

GEICO finished second in our rankings with a score of 4.3 stars and Travelers was third at 4.14 stars.

The best car insurance companies in Maryland

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Maryland

GEICO has the cheapest average rate in the state at $1,262 a year.

While GEICO is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In Maryland, as mentioned earlier, the cheapest policy is GEICO with an average rate of $1,262 a year. Nationwide follows with an average premium of $1,363 a year or $114 a month and Travelers with premiums of $1,523 a year or $127 a month.

Allstate is the most expensive insurer with an average premium of $3,108.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Maryland

Full coverage car insurance in Maryland

As noted, the rates above are for full coverage car insurance. Residents of Maryland will often be advised to get full coverage, which includes both liability protection as well as collision and comprehensive. Liability helps pay medical and legal bills for injuries or damages you are responsible for after an accident. However, liability doesn’t cover damage to your vehicle or your injuries.

Collision will pay to repair your vehicle if it is damaged after colliding with another vehicle or object. Comprehensive covers perils such as fire, theft, flooding, vandalism and more.

You can find out more about liability, collision, and comprehensive coverage here.

Shopping for car insurance in Maryland

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Maryland by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Erie Insurance is the cheapest insurer in Maryland for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $4,011 which is 202% more expensive than the most affordable coverage for seniors at $1,330 and 70% more than young drivers’ best rate of $2,357.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in Maryland

Seniors in the state pay more for coverage than all other driver groups, except for teens. Nationwide is the most affordable option for seniors with a yearly premium of $1,330 or $111 a month. GEICO was the second cheapest at $1,418 and Travelers rounded out the top three at $1,738.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Maryland

Car insurance for young drivers in Maryland

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, Travelers is the cheapest insurer for drivers in their early 20s with an average premium of $2,357 a year or $196 per month.

GEICO was the second cheapest insurer at $2,461 and Erie Insurance will insure a young driver in Maryland for $2,566 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in Maryland

Car insurance for teen drivers in Maryland

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For Maryland teens, Erie Insurance is the most affordable option with a premium of $4,011 a year or $334 a month. GEICO is the next most affordable at $4,685 a year or $390 a month followed by Kemper Insurance running $4,909 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

The chart below shows average premiums for teens in Maryland:

Average rates for teens in Maryland

Average cost of car insurance in Maryland

Maryland is the 32^nd most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,746.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which Maryland ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Gwynn Oak is the most expensive area for coverage with an average premium of $2,447 a year.

Here are the most expensive ZIP codes in Maryland for car insurance:

Most expensive ZIP codes in Maryland

Which Maryland ZIP codes are the cheapest for car insurance?

The cheapest ZIP codes for car insurance in Maryland tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Maugansville has the most affordable ZIP code in Maryland with an annual premium of $1,428.

Least expensive ZIP codes in Maryland

Cheapest car insurance for high-risk drivers in Maryland

If you have an incident on your driving record, you may be considered a high-risk driver, and you will pay more for coverage. A speeding ticket, at-fault accident, or DUI can send your premium skyrocketing.

When we ran the numbers, we found that a speeding ticket in Maryland will push the average rate to $2,643 and an at-fault accident will push it to $3,304.

An accident will stay on your record for at least three years so you will be paying a higher premium for quite a while after an accident.

A DUI will usually result in a massive increase and could push your premium into unaffordable territory. If you are convicted of a DUI, your rate on average will climb to $3,356 a year. A DUI will be reported to insurers for three years, and if you are a commercial driver, it stays on your record for 55 years.

The table below shows the average increase for drivers with various incidents on their record:

How much rates increase in Maryland after a traffic incident

Minimum car insurance requirements in Maryland

Most states require drivers to carry a minimum amount of liability car insurance, and Maryland is no exception. Drivers are required to carry 30/60/15 in liability coverage, which translates into:

• $30k for injury/death per person
• $60k for injury/death per accident
• $15k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Maryland.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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