Cheapest Car Insurance in Maryland (2021)

Are you driving in Maryland? You and your neighbors could be paying as low as $44 a month for car insurance.

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Cheapest Car Insurance in Maryland (2021)

Drivers in Maryland pay an average of $113 a month for minimum-coverage auto insurance. Of the largest car insurance companies operating in Maryland, USAA has the lowest average rate of $44 a month for auto insurance.

Maryland's average auto insurance rates come in higher than the national average of $87 a month. This makes it even more important for you to find the cheapest car insurance quote you can. 

That's where we can help. We looked at the rates, policy offerings and customer satisfaction trends of the top providers in Maryland to help you find your best, cheapest car insurance policy.

We'll cover:

How much is car insurance in Maryland?

The cost of minimum-coverage car insurance in Maryland is $113 a month. That's 30% higher than the national average of $87 a month. The state average for full-coverage car insurance is $211 a month. That's 19% higher than the national average of $178.

Average minimum and full-coverage monthly rates
  Minimum coverage Full coverage
U.S. $87 $178
Maryland $113 $211
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Maryland's higher rates are largely due to the state's high minimum car insurance requirements and the large number of uninsured drivers in the state. Both of these factors affect all drivers in Maryland to some degree. Other factors that may affect your car insurance rates include:

  • Your driving history.
  • The make and model of your car.
  • The area where you live.

Best, cheapest car insurance in Maryland

In looking at the seven most popular car insurance companies in Maryland, USAA has the cheapest average rates for both minimum-coverage and full-coverage auto insurance, followed by Erie and State Farm.

 
 

In addition to examining rates, we also looked into these Maryland car insurers' policy offerings and customer relations. Here's what we found.

USAA: cheapest rates and best for military members

USAA has the lowest average minimum-coverage car insurance rate in Maryland, $44 a month. That's 61% lower than the average rate in Maryland of $113. USAA's average full-coverage rate is $93 a month, 56% cheaper than the state average of $211.

Comparing USAA's average monthly car insurance rates
  Minimum coverage Full coverage
National $87 $178
Maryland $113 $211
USAA $44 $93
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

USAA is often considered the best in the insurance industry. On top of low rates, it usually has the highest levels of customer satisfaction in whichever state they operate. In J.D. Power's 2021 U.S. Auto Insurance Study, USAA received the highest rating in the Mid-Atlantic region — 896 out of 1,000. This gives an excellent indication of USAA's ability to retain and renew policy holders.

The main downside of USAA is the limited scope of people they cover. USAA only provides insurance to active and veteran members of the Armed Forces, as well as their families. But if you are serving in the military, USAA has some policy offerings specific to you. For instance, it provides auto insurance around the world if you are stationed overseas. And you can get a discount if you keep your car on base.

Erie: second-cheapest rates and best long-term savings

Erie holds second place in Maryland for the cheapest minimum and full-coverage auto insurance rates. Its average minimum-coverage rate is $58 a month, and full-coverage is $121 a month.

Comparing Erie's average monthly car insurance rates
nbsp; Minimum coverage Full coverage
National $87 $178
Maryland $113 $211
Erie $58 $121
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Where Erie really stands out is with the money you can save with the company over time. With its Rate Lock program, your premium stays the same unless you make specific changes to your car insurance policy, such as adding or removing a vehicle or changing your address. Furthermore, Erie has great benefits that can save you even more money.

  • If you've had an Erie car insurance policy for at least three years, you can avoid a surcharge after your first at-fault accident.
  • Your deductible is reduced by $100 every year you go without an accident, up to $500.

Erie has an excellent history of customer care as well. J.D. Power gave the company a score of 856 out of 1,000 in its 2021 U.S. Auto Insurance Study for the Mid-Atlantic region, well above the average regional rating of 842. Furthermore, Erie has a rating of 0.5 in the NAIC Complaint Index. With a national average Complaint Index of 1.0, Erie does very well on this front.

State Farm: third-cheapest rates and best discounts

State Farm has an average car insurance rate in Maryland of $69 a month for minimum-coverage and $122 a month for full-coverage.

Comparing State Farm's average monthly car insurance rates
  Minimum coverage Full coverage
National $87 $178
Maryland $113 $211
State Farm $69 $122
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

State Farm car insurance policyholders have many opportunities to lower their rates with a wide variety of discounts. These potential savings include:

  • After three consecutive years with State Farm and no accidents, you may qualify for a discount that may even increase if you stay accident-free.
  • Are you a student? If you maintain a 3.0 GPA or are in the top 20% of your class, you may save up to 25% on your car insurance rate.
  • Covering multiple cars on your auto insurance policy can save you up to 20% on your annual premium.
  • If you bundle your car insurance policy with your home, renters, condo or life insurance, you can save up to 17% on your insurance bill. 

Car insurance requirements in Maryland

Maryland state law requires all resident drivers to maintain these minimum auto insurance limits:

  • Bodily injury per person: $30,000
  • Bodily injury per accident: $60,000
  • Property damage liability per accident: $15,000

While the required limits may seem adequate, long hospital stays or legal cases can hit them quickly. Given the high cost of cars now, $15,000 will probably not cover full replacement if you total another person's vehicle. If you hit your liability coverage limit, you'll have to pay the rest out of your own pocket. To avoid this scenario, consider raising your car insurance limits to the following: 

  • Bodily injury per person: $100,000
  • Bodily injury per accident: $300,000
  • Property damage liability per accident: $100,000

Methodology

We used Quadrant Information Services to generate thousands of car insurance quotes from every ZIP code in Maryland from the following providers: 

  • Allstate
  • Erie
  • GEICO
  • NAICO
  • Progressive
  • State Farm
  • USAA

Our sample driver was a 35-year-old with a clean record who drives a 2012 Honda Accord LX 13,500 miles per year.

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