Best car insurance companies in Maryland
Fact-checked with HomeInsurance.com
In Maryland, the average driver pays $1,787 annually for full coverage car insurance. In comparison, the national average car insurance premium is $1,555 a year. Some of the key factors that impact car insurance rates in Maryland include:
- About 12.4% of drivers in Maryland are uninsured
- There were 474 fatal crashes in Maryland in 2018
- Maryland has high liability coverage requirements
Every driver in Maryland pays a different rate for car insurance based on various factors unique to each person. Some might pay more or less than the state-wide average based on their driving record, for example. The table below highlights the average cost of car insurance (full and minimum coverage) in Maryland for drivers with a clean driving record, one speeding ticket and one accident:
|Clean record||1 speeding ticket||1 accident|
Top 5 insurance providers in Maryland
- Geico – best for cheap rates
- Erie – best for comprehensive coverage
- Progressive – best for discounts
- Allstate – best for young drivers
- USAA – best for military members
|Company||J.D. Power Score||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A- (Excellent)||Responsible payer, safe driving club||$1,795|
|GEICO||3/5||A++ (Superior)||Federal employee, emergency deployment||$1,563|
|Erie||3/5||A+(Superior)||Vehicle storage, diminishing deductible||$1,618|
|Maryland Auto Insurance||N/A||N/A||Pay in full, claims-free||$3,285|
|Progressive||3/5||A+ (Superior)||Snapshot program, distant student||$1,661|
|State Farm||3/5||A++ (Superior)||Drive Safe & Save program, Steer Clear program||$2,148|
|USAA||5/5||A++ (Superior)||Vehicle storage on base, annual mileage||$1,893|
Geico – best for cheap rates
Geico is our top recommendation for Maryland drivers who are looking for cheap car rates. The average full coverage car insurance policy from Geico costs $1,563 per year, which is cheaper than the statewide average annual rate of $1,787. The company also offers a wide variety of discounts to help Maryland drivers save even more, on top of already-competitive rates.
Erie – best for comprehensive coverage
Erie is a regional insurance provider that is known for offering all-encompassing and highly-customizable coverage. Erie’s standard full coverage car insurance policies come with unique coverages, like pet insurance, a glass repair deductible waiver, locksmith services and roadside assistance, to name a few. Erie also has a rate lock guarantee and a disappearing deductible program to round out your coverage.
Progressive – best for discounts
In Maryland, the average driver pays $1,661 per year for a full coverage policy from Progressive. But drivers can lower their premium even more by taking advantage of Progressive’s multitude of discounts. Progressive customers can save money by enrolling in the Snapshot program, bundling their policies, paying in full, having continuous coverage and maintaining good grades as a student.
Allstate – best for young drivers
Allstate is our top recommendation, in particular, for young Maryland drivers or students. With Allstate’s teen driver discount, unmarried drivers under 25 years old qualify for several exclusive discounts. Drivers can also get a lower premium by getting good grades, completing Allstate’s teenSMART® driver education program or being in school at least 100 miles away from where their car is garaged.
USAA – best for military members
USAA only sells insurance to active-duty service members, veterans and their immediate family, which is why it’s our top recommendation for military members. Maryland drivers who meet USAA’s criteria will be hard-pressed to find a better insurance company. USAA is highly regarded for its quality customer service, affordable policies and military-specific coverages.
Car insurance in Maryland by city
Car insurance rates in Maryland are different for every ZIP code. The table below includes the average cost of full coverage and minimum coverage car insurance in the biggest Maryland cities:
|City||Full coverage annual rate||Minimum coverage annual rate|
The average cost of full coverage car insurance in Baltimore is $2,268 per year, which is significantly higher than the statewide average rate of $1,787 a year. Car insurance is expensive in Baltimore, likely because it’s the most populated city and has a high crime rate.
Car insurance in Columbia is pretty affordable in comparison. The average full coverage policy costs $1,726 annually, which is cheaper than the statewide rate and significantly lower than Baltimore. Columbia is the second-largest city in Maryland, with a population of 103,663, but has a lower crime rate.
Drivers in Germantown pay $1,682 a year for full coverage car insurance, on average. Germantown’s population is under 100,000 and the city is pretty safe. As a result, car insurance rates in this city are cheaper than average compared to the rest of the state.
Car insurance rates in Silver Spring are slightly above average, where drivers pay $1,899 for full coverage insurance. Silver Spring has a high crime rate compared to many other Maryland cities, which can contribute significantly to higher insurance rates.
Frederick Maryland is the cheapest major city for car insurance in Maryland. The average driver pays just $1,449 a year for a full coverage policy, which is well below the statewide average. Because Frederick has a small population and a low crime rate, insurance costs are much more affordable for most drivers.
Maryland car insurance considerations
Drivers in Maryland should consider the state’s severe weather risks when shopping for car insurance. Being near the East Coast, Maryland is particularly susceptible to hurricanes, tornados, flooding and winter storms on a regular basis, which can damage or destroy vehicles. Having the right insurance coverage can protect cars from weather and other risks.
As with most states, car insurance is legally required in Maryland. Drivers must carry a minimum amount of insurance in order to legally operate their car; failing to meet insurance requirements when driving is illegal and can incur serious penalties.
Maryland minimum liability requirements
Drivers in Maryland are required to carry liability insurance, with minimum policy limits listed at 30/60/15. Here is what minimum coverage car insurance in Maryland includes:
- $30,000 bodily injury liability coverage per person
- $60,000 bodily injury liability coverage per accident
- $15,000 property damage liability coverage per accident
Drivers who purchase the minimum required coverage will pay the lowest rate, but there is no guarantee that Maryland’s minimum liability coverage will cover the full cost of an accident. For example, if a driver causes $30,000 in property damage, they would be responsible for paying the remaining $15,000 out-of-pocket in Maryland. As a result, most car insurance companies recommend that drivers purchase more coverage than what is required.
How we chose the best car insurance providers in Maryland
To choose the best insurance companies in Maryland, we started by finding the biggest providers in the state by market share, then evaluated each based on third-party ratings, financial strength, discounts, coverage options, customer service reviews and its average annual premiums in Maryland.
Other car insurance providers in Maryland to consider
In addition to the five best auto insurance companies in Maryland, there are a few other insurance providers that drivers should consider:
Maryland Auto Insurance
Maryland Auto Insurance is the new Maryland Auto Insurance Fund (MAIF). The company specializes in non-standard auto insurance for high-risk drivers. If you can’t get insurance from a preferred provider because of a DUI, poor driving record or low credit score, Maryland Auto Insurance can help you get coverage that meets state requirements.
State Farm is a well-known insurance provider in Maryland and around the country. The company’s average policies are on the more expensive side, with an average annual rate of $2,148 for full coverage insurance. However, State Farm offers a variety of discounts, good digital tools and efficient claims handling.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of ZIP codes across all 50 states and Washington, D.C., using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-old male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.