Best Car Insurance in Maryland (2023)

Finding the best car insurance in Maryland can be tricky. What’s “best” for you depends on your situation; but a company’s coverage options, financial strength, customer service, and pricing are usually important factors.

Getting a policy that fits your needs and budget in Maryland is important — especially when considering the state’s average monthly cost of $308, which is more than double than the national average of $148. Here’s what you need to know about comparing car insurance in Maryland and how to shop for the best one for you.

Best car insurance companies in Maryland

Finding one car insurance company that’s right for everyone is impossible. Your ideal insurer will depend on various factors like your budget, driving history, and type of coverage you need.

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Best car insurance overall in Maryland: Allstate

Allstate is Insurify’s top choice for auto insurance in Maryland. It has several benefits, including various coverage options and a user-friendly website and mobile app. The online tools make managing your policy, filing a claim, or making policy changes quick and easy.

The company has an IQ Score of 4.1 and received solid ratings for customer satisfaction from J.D. Power's annual U.S. Auto Insurance Study for the mid-Atlantic region.^[1] Allstate also has a solid financial rating, indicating its ability to pay out future claims.

Maryland drivers pay an average monthly cost of $239 for liability-only insurance with Allstate. However, it has various discounts and benefits available to its customers, making it a good choice for Maryland drivers who want reliable coverage and digital account management.

Allstate pros and cons

Best cheap car insurance in Maryland: USAA

USAA is a great option for Maryland drivers looking to balance affordability with quality coverage and customer service. Not only does it offer the cheapest auto insurance in the state, but its IQ Score of 4.5 reflects its commitment to providing high-quality service.

Budget-savvy drivers will find USAA’s policies appealing, with an average monthly cost of $104 for liability-only coverage. It also offers various discounts to help you save even more money on your policy — the company reports an average annual savings of $725 when switching to USAA.

USAA ranks above average for overall customer satisfaction in J.D. Power’s 2022 U.S. Auto Insurance Study in the mid-Atlantic region.^[1] You’ll also find online and mobile tools and 24/7 support, giving you access to the help you need when you need it.

USAA pros and cons

Best for affordability in Maryland: State Farm

When it comes to car insurance, finding the best value for your money is crucial. State Farm is a trusted and well-known insurance provider offering affordable coverage and boasting an IQ Score of 4.4. It’s a good indicator that the company places a high priority on quality, reliability, and financial stability.

You’ll find various discounts and benefits, like safe driving and bundling discounts, emergency road service, and car rental and travel expense coverage. The insurer also has competitive pricing. Customers pay an average of $134 per month for liability-only coverage, which is lower than some of its competitors.

State Farm pros and cons

Best car insurance for commuters in Maryland: Progressive

If you’re a frequent commuter, the more time you spend on the road means a higher likelihood of an accident.^[3] Progressive’s Snapshot program can help alleviate some of that stress with lower insurance rates. Avoiding hard braking and driving during off-peak hours can improve your chances of getting a better insurance premium.

Progressive has a 4.0 IQ Score and very few customer complaints, according to the NAIC complaint index, demonstrating its commitment to providing top-notch service to its customers. Policyholders pay an average monthly cost of $210 for liability-only insurance, which is lower than the state average. Drivers can also access many discount options, such as loyalty discounts, driver discounts, and discounts for how you get a quote and buy a policy.

Progressive pros and cons 

Best car insurance for families in Maryland: Erie

Erie offers various discounts and benefits that cater specifically to the unique insurance needs of families. The multi-policy discount is a prime example, providing families with savings of up to 20%. It can make a huge difference, since families often have multiple vehicles to insure and may also need homeowners or renters insurance.

Erie is first for customer satisfaction in J.D. Power’s annual U.S. Auto Insurance Study for the mid-Atlantic region.^[1] The insurer also has a below-average complaint index from the NAIC, won awards for its claims service, and earned an IQ Score of 4.4. 

With a low average monthly premium of just $152 for liability-only coverage, Erie is an excellent choice for families seeking affordable coverage without sacrificing quality.

Erie pros and cons

Best car insurance for college students in Maryland: Liberty Mutual

If you’re a college student, you have a chance to save on your auto insurance with Liberty Mutual. The insurer offers two different discounts for students. First, its good student discount lowers your rates if you have a GPA equivalent of B or better. Then, you can save even more with the student away at school discount if you go to college away from home and don’t drive much.

The average monthly premium is just $181 for liability-only coverage. However, Liberty Mutual ranks below average for overall customer satisfaction in the mid-Atlantic region, according to J.D. Power’s 2022 U.S. Auto Insurance Study.^[1] Liberty Mutual’s NAIC complaint index is also three times higher than expected, which may mean frustrating customer service.

Liberty Mutual pros and cons

Best car insurance for luxury car owners in Maryland: Travelers

Travelers is the top choice for luxury car owners in Maryland. The company’s Premier New Car Replacement coverage pays for a brand-new car of the same make and model if you total your new car within the first five years. It also includes gap coverage, which helps protect you in case the insurance payout isn’t enough to pay off your loan.

The premium is cheaper than the state average, at $122 per month for liability-only coverage. Travelers has an IQ Score of 4.2, above-average scores in customer satisfaction, and the lowest complaint index of all the insurers on this list, with just one complaint filed in Maryland over the past three years.^[1]

Travelers pros and cons

Best car insurance for high-risk drivers in Maryland: GEICO

GEICO offers some of the lowest rates in Maryland, even for high-risk drivers. The average monthly premium for drivers with accidents, DUIs, or tickets is $219, which is 40% less than the state average of $308.

The company has a 4.2 IQ Score. However, J.D. Power ranks GEICO below average for customer satisfaction, and the NAIC reports an above-average complaint index, with 77 complaints filed in Maryland in the past three years. Overall, these factors suggest that some customers may not be entirely happy with the service they receive from GEICO.

GEICO pros and cons

Best car insurance for retirees in Maryland: Nationwide

If you’re like most retirees who drive fewer miles than the average motorist, Nationwide's pay-per-mile coverage through its SmartMiles program is worth considering. Your monthly premium could be lower than the company’s average full-coverage rate of $267 if you don’t spend much time on the road.

Nationwide scores just below average for customer satisfaction, according to J.D. Power’s U.S. Auto Insurance Study.^[1] However, the NAIC reports a better-than-average complaint index, and it has an IQ Score of 4.1. It seems customer experiences tend to be positive, although some complaints may still arise from time to time.

Nationwide pros and cons

How Insurify rates the top auto insurers

Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company. 

Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the Insurify Quality Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

How to shop for the best car insurance in Maryland

While shopping for car insurance in Maryland, keep a few things in mind. “Drivers need to consider the company they plan on working with as well as the agency. There are many independent insurance brokerages as well as ‘captive agencies,’” says Jesse Cunningham, an independent licensed insurance agent and owner of insurance platform Bauple in Maryland.

While independent insurance agents may sell policies from different insurance companies, “captive” agents work for one insurance company and sell only its policies.^[5] Cunningham says that either independent or captive agents can be good options. When getting a quote from an independent brokerage, he recommends making sure you're comfortable with the people you talk to since they’re handling your policy, filing claims, and more.

Here are other factors to help you decide on an insurance provider:

• Coverage options: Don’t settle for an insurer that only offers basic coverage. Look for a company that has various options, so you can hit the road with peace of mind.

• Financial strength: Choose an insurer with a strong financial rating so you can be confident the company has the resources to pay out claims.

• Customer service: You deserve responsive service and quick claims processing from an insurer  that values you as a customer.

• Rates: Keep your budget in check by comparing rates from multiple car insurance companies and finding the one that offers the best value for your needs.

• Reputation: Look at customer reviews and complaints. It can also be helpful to look at ratings from third-party organizations, like J.D. Power.

How to get the cheapest car insurance in Maryland

Your driving record, location, age, marital status, and prior insurance coverage are a few factors that affect your rate.^[6]

"Do not settle for the first quote out of convenience,” says Cunningham. “On top of that, managing your credit score and making sure you don’t get into accidents [or] tickets will ensure the best and cheapest car insurance possibilities.”

Here’s what else to you can do to lower your car insurance costs in Maryland:^[7]

• Compare quotes. Get more than one quote before buying a policy. Shop around and compare rates from at least three insurance companies to find the best deal.

• Up your deductible. A higher deductible can lower your premiums. Just be sure to have the cash on hand to cover the higher deductible if you need to make a claim.

• Ask for discounts. Affordable car insurance shouldn’t be hard to find. Look for discounts like multi-policy, safe driver, and low mileage.

• Drive safely. Keep your driving record clean and free of accidents and violations to avoid costly rate increases.

Minimum car insurance requirements in Maryland

Knowing the minimum requirements for car insurance can help you protect yourself and other drivers on the road.

"Note that these are very low limits, and you will still be financially responsible if you cause more property damage or bodily injury expenses above your policy limit," says Cunningham.

Here are Maryland’s minimum car insurance requirements:^[6]

Liability-only vs. full-coverage insurance in Maryland

Liability auto insurance in Maryland is mandatory for all drivers. The minimum coverage pays for injuries and damages you cause to other drivers and their vehicles. Having liability-only insurance makes sense if you drive older or less expensive cars that may not be worth the cost of full coverage, drive infrequently, or are on a tight budget.

For more protection, consider full-coverage insurance. It’s a catch-all phrase that typically includes collision to cover damages to your vehicle and comprehensive coverage for other non-collision claims, such as theft and vandalism. Full coverage is a smart option if you drive in high-traffic areas, have a loan or lease on your car, or own a more expensive vehicle.

Prices can vary among car insurance companies, which is why it’s important to compare quotes to find the best price that also meets your coverage needs. The table below shows the average liability-only and full-coverage premiums for car insurance companies in Maryland.

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Maryland car insurance rates by driving and accident history

Your driving history can greatly influence your car insurance rates.^[6] A spotty driving record indicates you’re riskier and more likely to cause an accident. For example, a history of speeding tickets, driving under the influence, or an at-fault accident can lead to higher rates than a clean record.^[8]

To give you an idea of how much difference it can make, here’s a breakdown of average monthly quotes for the cheapest car insurance in Maryland based on driving and accident history.

SR-22 insurance in Maryland

SR-22 insurance isn’t a type of insurance policy. Instead, it’s a form that verifies you have insurance.^[9] Drivers usually need an SR-22 after a serious infraction, so you’ll likely see a hefty spike in your insurance rates. GEICO, State Farm, and Nationwide typically offer coverage for drivers who need SR-22 forms on file.

Maryland doesn’t seem to require SR-22 forms for people who drive while uninsured or with serious driving violations. Instead, the state may impose fines, suspend drivers’ licenses, prohibit drivers from registering any more vehicles, and more.^{[10] [11]}

Maryland car insurance quotes by credit tier

Your credit score can affect how much you pay for Maryland car insurance.

“There is a correlation between low credit scores and filing more claims,” Cunningham says. “Policyholders with lower credit scores typically pay higher premiums.”

Drivers with excellent or good credit scores are usually eligible for lower rates. If you have a poor credit score, try to improve it by paying bills on time, reducing debt, or disputing errors on your credit report. Boosting your credit score can help you qualify for lower premiums on your car insurance policy and save money in the long run.^[12]

Even though car insurers in Maryland can use your credit score to set premiums, state law prevents them from using your credit score to deny coverage, increase rates, cancel your policy, or not renew your policy. Furthermore, insurance companies in Maryland must disclose how much your credit score influenced your premiums.^[6]

Car insurance quotes in Maryland cities

Where you live plays a major role in your car insurance rates. Premiums can change from city to city and even from one neighborhood to another. For example, you’ll pay less on average for coverage if you live in Rockville than Upper Marlboro, as shown in the table below.

Weather patterns, crime rates, and cost of living can all affect rates. Generally, accidents and theft are more likely to occur in urban areas, which can drive up your premiums. Rural drivers are more likely to enjoy lower rates because of less traffic and fewer accidents.^[3]

Least expensive cities in Maryland

Most expensive cities in Maryland

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Maryland car insurance rates by driver age

Young drivers, especially teenagers, are riskier to insure than older drivers because they lack experience on the road.^[3] It’s a prime example of how age can affect insurance rates. In Maryland, teens and drivers under 25 pay the highest amounts. You’ll generally see your rates go down as you get older.

Maryland car insurance FAQs

Insurify Insights

How Maryland Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Maryland below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Maryland drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Honda Accord

Most Popular Car in Maryland

#22

State with the Most Speeding Tickets Rank

#21

State with the Moving Violations Rank

#43

State with the Most DUIs Rank

#49

State with the most Suspended Licenses

• Accidents in Maryland

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Maryland is the #6 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #6
  • Percent of drivers in Maryland with an accident: 10.3%
• DUIs in Maryland

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Maryland is the #43 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #43
  • Percent of drivers in Maryland with a DUI: 1%
• Reckless Driving in Maryland

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Maryland is the #47 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #47
  • Percent of drivers in Maryland with a reckless driving offense: 0.8%
• Rude Driving in Maryland

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Maryland is the #48 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #48
  • Percent of drivers in Maryland with a rude driving violation: 0.9%
• Speeding in Maryland

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Maryland is the #22 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #22
  • Percent of drivers in Maryland with a speeding ticket: 8.8%
• Failure to Yield Rates in Maryland

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Maryland is the #34 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #34
  • Percent of drivers in Maryland with a failure to yield violation: 0.1%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.