INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Maryland for 2024

Updated Oct. 19, 2023
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USAA is generally the cheapest car insurance in Maryland for both full coverage and minimum liability policies.

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From blue crabs to historical landmarks, Maryland is an appealing place to live. But its appeal comes at a price; it’s a state with a high cost of living.

The higher cost of living is reflected in Maryland’s auto premiums too. The average cost of car insurance in Maryland is $1,717 per year, compared to the national average of $1,582. How much you’ll pay for coverage depends on several factors, including your location, age, credit history, and more. 

In this article

Key takeaways

  • The average cost of car insurance in Maryland is $1,717 per year for full coverage or $1,106 per year for state-minimum coverage.
  • Excellent credit could help you save over $1,000 per year on car insurance.
  • Young drivers pay an average of $5,036 per year for insurance.

How much does car insurance cost in Maryland?

According to the Insurance Research Council, about 14% of drivers in Maryland are uninsured. Thanks to this and Maryland’s higher cost of living, Maryland’s average rates for full coverage insurance are $1,717.

It’s even worse for teens and young adults. The average rate for younger drivers is nearly three times the state average, costing around $5,036 per year.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,717/year $1,106/year USAA
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$5,036/year $1,873/year $2,543/year

Average cost of car insurance in Maryland by provider

Many companies are licensed to issue car insurance policies in Maryland. Rates and coverage options vary by insurer. Available companies range from national brands like Nationwide and Allstate to smaller, regional companies like Erie Insurance, which is only available in a few states.

In Maryland, USAA has the cheapest premiums for both full and state-minimum policies. However, USAA isn’t available to everyone; you must be a veteran, a current military member, a pre-commissioned officer, or the spouse or child of a qualifying member to qualify.

For those that aren’t eligible for USAA coverage, Travelers was the cheapest for full coverage insurance with an average rate of just $1,433 per year. If you’re looking for state-minimum coverage, Erie was the cheapest after USAA, with an average cost of $865 annually.

Provider Full coverage Minimum liability coverage
Allstate
$1,999/year
$1,163/year
Erie $1,552/year
$865/year
GEICO $1,505/year
$931/year
Nationwide $1,848/year $1,357/year
Travelers $1,433/year $936/year
Progressive $1,698/year $1,209/year
State Farm $1,451/year $1,017/year
USAA $973/year $528/year

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How does credit score affect car insurance rates in Maryland?

Although insurance companies cannot refuse to underwrite a policy based on credit in Maryland, the state allows insurers to use credit scores to determine premiums. The state permits companies to charge a surcharge as high as 40% based on drivers’ credit histories.

We found that those with excellent credit will pay significantly less per year for car insurance than drivers with poor credit.

Credit health Avg. annual premium
Poor (550-649) $3,020/year
Average (650-699) $2,709/year
Good (700-749) $2,192/year
Excellent (750+) $1,891/year

Average car insurance rates for high-risk drivers in Maryland

High-risk drivers, meaning those more likely to file a claim or be involved in accidents, will pay significantly more for car insurance than drivers with clean driving records. 

In Maryland, one at-fault accident can cause your premiums to increase by $865, while a DUI will increase your premiums by $1,142.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,717/year $2,582/year $865
DUI $1,717/year $2,859/year $1,142
Speeding ticket $1,717/year $2,179/year $462

*Assumes clean driving record with good credit

How does age affect car insurance rates in Maryland?

Like many other states, Maryland insurers charge higher premiums for younger drivers. For example, an 18-year-old will pay more than double the premiums of a 25-year-old. Those 60 or older will pay less; the average premium for a 60-year-old is about $1,992 per year.

Age Avg. annual premium
18 $5,181/year
25 $2,209/year
30 $2,187/year
40 $2,229/year
60 $1,992/year

Maryland car insurance rates by city

Where you live can affect your car insurance premiums, particularly if you live in a densely populated area. And the higher the crime rates are, the more you’ll pay for car insurance.

In Maryland, car insurance is the most expensive in Baltimore, costing an average of $2,717 per year. According to NeighborhoodScout, the city has a crime index of three, making it one of the most crime-heavy cities in the country.

City Avg. annual full-coverage premium
Baltimore $2,717/year
Bowie $2,257/year
Gaithersburg $2,034/year
Rockville $1,926/year
Frederick $1,720/year
Annapolis $1,601/year

MD’s minimum car insurance requirements

Car insurance is required for drivers in most states, and Maryland is no different. All drivers are required to have car insurance that meets the following minimums:

  • $30,000 in bodily injury coverage
  • $60,000 in bodily injury coverage for two or more people
  • $15,000 in property damage insurance

How to save money on car insurance in Maryland

Although the cost of car insurance in Maryland can get expensive, there are ways to reduce your premiums:

  • Increase your deductible: Your deductible plays a significant role in affecting your premiums. The deductible is how much you have to pay for damages or injuries before your insurance kicks in; the higher the deductible, the lower the premium.
  • Ask about discounts: Talk to your agent about discounts you may be eligible for, such as good student discounts, multi-policy discounts, or safe driving discounts.
  • Enroll in usage-based insurance (UBI): With UBI coverage, companies use an app or telematics device to monitor your vehicle usage and driving habits. By switching to UBI, safe drivers and those with short commutes may save substantial money.
  • Shop around: As you saw above, rates can vary between companies. You could qualify for coverage that is hundreds less from another company. You can request quotes from the best car insurance companies to find out if you can save money by switching insurers.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in MD

Is car insurance expensive in MD?

On average, car insurance is more expensive in Maryland than in other states. The average full coverage policy costs $1,717 per year in Maryland, compared to the national average of $1,582.

How much is car insurance per year in MD?

The average cost of car insurance in Maryland is about $1,717 per year for full coverage insurance. For state-minimum coverage, the average cost is $1,106.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.