Cheapest auto insurance in Maryland: Erie
Erie is the cheapest car insurance company for minimum liability, according to our rate analysis. A minimum policy is one that only meets state requirements, and it is the cheapest form of insurance you can get. Premiums from Erie average $591 per year across the quotes we considered.
Find Cheap Auto Insurance Quotes in Maryland
Minimum liability car insurance policies have the cheapest premiums; however, they could end up costing you more in the long run if you need to file a claim.
If you only carry the minimum state-required coverages, then you may have to pay out of pocket for repairs after an expensive accident.
Cheapest company for full coverage: Progressive
The average cost of full coverage auto insurance in Maryland is $2,386 per year, or $199 per month, but drivers could find cheaper rates by comparing car insurance companies.
For cheap full-coverage insurance in Maryland, we recommend Progressive for most people. Progressive rates are 22% cheaper than the statewide average for a full coverage policy. The second cheapest is State Farm with an annual premium of $2,081 for our sample driver.
Auto insurance policies with full coverage include liability insurance as well as comprehensive and collision coverage. This means you are covered for damage caused in an accident where you are at fault. Collision coverage pays for damage to your own vehicle.
While minimum coverage policies cost less than full coverage car insurance, not having comprehensive and collision coverage, as well as having lower coverage limits, could leave you without adequate protection in an accident.
The difference between full and minimum coverage policies in Maryland is $1,305 per year on average.
Cheap car insurance for drivers with prior incidents
In most cases, when you get into an accident or receive a citation for a traffic violation, you will see your costs increase for auto insurance. We took a look at these increases in Maryland for those who have received a DUI (driving under the influence) citation or those who have been in one at-fault accident. With this in mind, we found the cheapest full coverage car insurance for drivers who:
Find Cheap Auto Insurance Quotes in Maryland
Cheapest for drivers with an accident: State Farm
Maryland drivers with an accident on their driving record can find the cheapest full coverage auto insurance quotes at State Farm. State Farm has full coverage auto insurance rates for drivers with an accident history that are 28% cheaper than the state average.
Cheapest car insurance for people with a speeding ticket: Progressive
Similar to an accident, getting a speeding ticket can significantly increase your auto insurance premiums. Drivers in Maryland who have been caught speeding could find the cheapest full coverage car insurance with Progressive. Compared to the average cost for people with a speeding ticket, Progressive's rates are $485 cheaper.
Cheapest car insurance for drivers with a DUI: State Farm
Driving under the influence is a serious traffic offense and can also increase auto insurance rates when you go to renew or purchase insurance. In Maryland, drivers may find the best rates with State Farm, which has an average annual premium of $2,290 for full coverage.
Cheapest car insurance for drivers with poor credit: Progressive
Having below-average or poor credit can lead to auto insurers viewing you in a negative light and increasing your premiums. For drivers with a poor credit history, we found that Progressive offers the cheapest auto insurance rates at $2,090 per year on average for full coverage.
Cheapest car insurance for married drivers: Progressive
If you are married, you may be able to get slightly cheaper auto insurance rates when looking for coverage. We found that married drivers can save an average of $12 per year compared to those who are unmarried. If you're a married driver in Maryland, Progressive has the lowest rates for full coverage on average, followed closely by State Farm and Erie.
Cheapest car insurance for young drivers: Erie
The average cost of minimum coverage car insurance for young drivers in Maryland is $3,059 per year, or $255 per month — which is about $1,979 more expensive than it is for older drivers.
Car insurance for young drivers is often much more expensive than it is for most people. The average cost of full coverage car insurance for younger drivers is $6,998 per year, nearly three times higher than it is for others.
Young drivers shopping for the cheapest car insurance in Maryland could find the best rates with Erie or Progressive. Erie has by far the cheapest rates within Maryland — over $1,000 cheaper than the state average for full coverage.
USAA is excluded from rankings because it is only available to current and former military members and their families.
Cheapest for young drivers with one accident: Progressive
Accidents nearly always cause the cost of car insurance to increase significantly, which means premiums for younger drivers who have been in an at-fault accident can be many times more expensive than for most drivers. The most affordable car insurance for young people who have been in an accident comes from Progressive, which is over $2,200 cheaper than average for full coverage.
Cheapest for young drivers with one speeding ticket: Progressive
Speeding will almost always cause your auto insurance premiums to increase, though not as drastically as for drivers who experience an at-fault accident. Young drivers with one speeding ticket could find cheap rates from Progressive at an annual rate of $6,919 for full coverage.
Best auto insurance companies in Maryland
The best insurer in Maryland is USAA, when considering its customer service and claim satisfaction ratings from our survey of current customers.
Unfortunately, USAA is not a widely available insurer. In this case, State Farm and Allstate are both viable options based on our survey of the best auto insurance companies in Maryland.
Percentage of respondents overall extremely satisfied with most recent claim
Percentage of respondents who rated customer service as "excellent"
Overall rank takes both claim satisfaction and customer service rankings into account.
In addition, we found that Geico had a strong NAIC complaint index score, as well as above-average claims satisfaction based on its J.D. Power rating. Below, you can find all the top rating statistics for each company within Maryland.
NAIC complaint index (lower is better)
J.D. Power claims satisfaction score (higher is better)
AM Best financial strength rating
All the companies we looked at had a financial strength rating from AM Best of A or better, meaning AM Best believes they have an "Excellent" or "Superior" ability to pay out claims.
Cheapest car insurance in Maryland by city
The cost of insuring a car is different for drivers, depending on where they reside. In this section, we'll take a detailed look at the city level to see which companies have the lowest rates — in this case, for a full coverage policy.
We found that full coverage car insurance rates in Maryland can vary by as much as $2,017 per year, depending on where you live in the state. Typically, auto coverage costs are greater in large cities, where accidents and auto theft are more common.
Average annual cost
Percentage difference from average
Auto insurance rate changes by company in Maryland
Maryland auto insurance companies decreased premiums by an average of 2.5% during 2020. The largest such decrease was by State Farm, which cut insurance rates by 14.6% across all of its driver profiles.
Rates in 2020 fell for the first time in five years due to the coronavirus pandemic, which forced many individuals to travel less and reduce their driving. With this, auto insurance claims fell to record low levels, allowing auto companies to offer cheaper car insurance.
Premiums written (millions) 2019
Rate change 2019
Rate change 2020
Maryland state minimum auto insurance requirements
Maryland's financial responsibility law mandates that drivers carry both liability insurance and uninsured motorist coverage.
These coverages offer financial protection in the event you harm someone else or damage their property in an accident, as well as cover any damage caused to you in an accident with an uninsured driver.
According to state law, drivers in Maryland are required to carry these coverages with the following minimum limits:
Maryland car insurance requirements
Minimum coverage limits
|Bodily injury (BI)||$30,000 per person/$60,000 per accident|
|Property damage (PD)||$15,000 per accident|
|Uninsured/underinsured motorist BI (UM/UIMBI)||$30,000 per person/$60,000 per accident|
|Uninsured/underinsured motorist PD (UM/UIMPD)||$15,000 per accident, $250 deductible|
|Personal injury protection (PIP)||$2,500 minimum|
Additionally, your insurer is required to include personal injury protection (PIP), which protects you against bodily injury in an accident regardless of who was at fault.
The minimum PIP Maryland drivers are required to carry is $2,500, though you may choose, in writing, a limited PIP option that essentially waives coverage.
- A limited PIP policy prevents you from receiving PIP benefits under any PIP policy issued in the state of Maryland.
- If you carry limited PIP coverage and are injured in an accident while driving your friend's car, for instance, you cannot receive PIP reimbursement through the car insurance policy affiliated with that vehicle.
- Limited PIP costs less and is worth considering if you have health insurance that covers car accidents.
Although your auto insurance policy may meet Maryland's minimum coverage requirements, it may not be best suited to your needs. We recommend that all Maryland drivers consider opting for higher coverage limits, as minimum coverage may not be enough to fully cover damages in a costly accident.
Recap of the cheapest auto insurance in Maryland
- Minimum coverage: Erie
- Full coverage: Progressive
- After an at-fault accident: State Farm
- After a speeding ticket: Progressive
- After a DUI: State Farm
- Poor credit history: Progressive
- Very good credit history: State Farm
- Married couples: Progressive
- Young drivers: Erie
- Young drivers with one accident: Progressive
- Young drivers with a speeding ticket: Progressive
Frequently asked questions
Who has the cheapest car insurance in Maryland?
Erie has the best prices for minimum coverage car insurance in Maryland, according to our analysis. The average rate from Erie is $590 per year. Drivers looking for full coverage should look to Progressive, which charges an average of $1,863 per year.
How much car insurance do I need in Maryland?
The state of Maryland requires drivers to have $30,000 in bodily injury coverage per person, $60,000 per accident, $15,000 in property damage coverage, and $10,000 in personal injury protection. Drivers also must have $30,000/$60,000 in uninsured/underinsured motorist bodily injury coverage and $15,000 in uninsured/underinsured motorist property damage coverage, with a $250 deductible.
How much does car insurance cost in Maryland?
The average minimum coverage auto insurance policy in Maryland costs $1,081 per year. That price goes up to $2,386 for a full coverage policy.
Is Maryland a no-fault state for auto insurance?
Maryland is not considered a no-fault state, meaning damages after an accident are paid out though liability coverage. That said, the state does require drivers to carry a small amount of personal injury protection coverage, which is traditionally part of no-fault insurance systems.
We collected thousands of rates from ZIP codes across Maryland for the largest 10 insurers. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
|Bodily liability||$50,000 per person/$100,000 per accident|
|Personal injury protection||$10,000|
|Property damage||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
For our minimum-coverage policy, we quoted a policy with the minimum required limits in Maryland, above.
For other rates analyses (age, credit score, accident history and marriage status) the base policy listed above was alternated to reflect the new driver.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.