5 Best Maryland Auto Insurance Providers (2021)

If you are shopping for Maryland auto insurance, you know how hard it can be to find the right car insurance provider. You could pick one of the first auto insurance companies you find, but you might overpay – or you could receive coverage that doesn’t actually fit your needs.

To help make your decision easier, our team reviewed the best car insurance providers in the U.S., and in the process, we found some that provide the best car insurance for Maryland drivers.

Whenever you shop for auto insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

To get started, enter your zip code in our tool below to start comparing personalized car insurance quotes:

In this article: 

Cheapest Car Insurance Companies In Maryland

According to our rate estimates, USAA offers the cheapest full coverage car insurance premiums in Maryland — with an average annual rate of $845. Progressive offers the second cheapest premium at an average annual rate of $1474. 

What Is The Average Cost Of Maryland Auto Insurance?

According to the NAIC, Maryland car insurance rates in 2018 averaged $1,212 per year. This is only significantly higher than the national average of $1,056, placing Maryland in the 12th spot out of all of the U.S. states for automobile insurance. 

Here’s a breakdown of the coverage costs for car insurance in Maryland that year according to the Insurance Information Institute:

*Most drivers carry liability coverage but not necessarily other types of auto insurance. Total average annual expenditure measures what Maryland drivers actually spent on auto insurance in 2018.

Annual Maryland Car Insurance Estimates By Age

Age can be a huge factor in how much auto insurance will cost. For Maryland, 24-year-old drivers can pay up to 43 percent more for car insurance than 35-year-old drivers.

Annual Maryland Car Insurance Estimates By Gender

Even though there isn't a drastic difference in average annual car insurance rates for men and women in Maryland, men still may pay up to 1 percent more than women.

Annual Maryland Car Insurance Estimates For Drivers With Bad Credit

Drivers with fair credit may pay up to 21 percent more for car insurance than drivers with good credit, and costs for drivers with poor credit can rise up to 59 percent.

Annual Maryland Car Insurance Estimates For Bad Drivers

Having a clean driving record can you save you up to 78 percent in car insurance costs. Those with a speeding ticket may pay up to 25 percent more, and those with an at-fault accident can be up to 69 percent more.

Top 5 Maryland Auto Insurance Providers

To find the best Maryland auto insurance, we went through our top providers' list and re-examined these companies in light of Maryland laws and guidelines. We also reviewed average rates for Maryland drivers to determine which company offers the lowest auto insurance rates. Here is what we found.

*Not all companies were included in our rate estimates for each state. You may also notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking for this article looks specifically at what insurance providers are best for auto insurance in Maryland.

#1 USAA Auto Insurance: Top Pick 

Military service members in Maryland can find the lowest rates through USAA car insurance. This coverage also applies to veterans and family members. In most circumstances, USAA has the lowest rates of any insurance company.

Another aspect of USAA that is worth noting is the exceptional customer service. Long-term customers can’t say enough good about the policies. Here is one customer review.

“I have been with USAA for years with no problems. USAA is the best.”

-Andre Gould via TrustPilot

Aside from what the customers think, J.D. Power further proves how much this company cares about its policyholders. With the 2020 U.S. Auto Claims Satisfaction Study and the 2020 U.S. Auto Insurance Study, USAA ends up on top consistently. The insurance provider also received an A++ (superior) rating from AM Best for financial strength, which is the highest rank possible. That means that USAA can meet its financial burden from covering so many policies with ease.

Along with standard coverage choices, you can also get these policies from USAA.

• Gap insurance: For financed cars, this is usually required by the lender. It covers that additional amount from the actual cost value of the motor vehicle to the balance on the car loan. USAA doesn’t offer this policy for leased cars.
• Car replacement assistance (CRA): This plan gives you 20 percent more than the ACV of your vehicle after it is declared a total loss.
• Accident forgiveness: When paying for this protection, your rates won’t go up after one accident. Plus, if you don’t have an accident for five years, USAA automatically puts this on your policy at no cost to you.
• Rental reimbursement: Opt for this plan if you want rental car coverage after an accident.
• Roadside assistance: You can purchase this service which helps you when you need a tow, fuel delivery, tire changes, jump-starts, and lockout support.

While USAA does provide Glass Coverage, it doesn’t appear to be available in Maryland. With that said, this company offers more than its fair share of protection to Maryland drivers. If you qualify, it makes complete sense to contact the company for a quote.

To learn more about the auto insurance provider, check out our review of USAA auto insurance.

#2 Erie Car Insurance: Runner-Up

For drivers that can’t qualify for USAA, our next best option is Erie car insurance. Most drivers in other states can’t receive coverage from Erie, but Maryland residents lucked out. For civilians not in military service or related to a service member, you likely will find your lowest rates from Erie Insurance.

In fact, the minimum liability insurance and full coverage terms aren’t that much higher than USAA. Now it’s time to look at the provider’s reputation. Several customers rave about the support received. 

Here’s what a customer had to say. 

“Erie has been my auto insurance provider for since I got my first car and has been my parents before me for 30+ years. We have had nothing but positive things to say about Erie and their customer service. My family has been hit several times over the last decades and has had some run-ins with the icy North East weather. Erie has always taken care of everything for us and kept us well informed. They also have always had the best value for dollar/coverage around. I have had more than one competitor salesman hangup when they hear I have Erie.”

-Christopher L. via BBB

Erie also performed well in the 2020 U.S. Auto Claims Satisfaction Study and the 2020 U.S. Auto Insurance Study. It has an A+ Better Business Bureau (BBB) rating and an A+ from AM Best for financial strength.

Here are some unique policy options available through Erie auto insurance for Maryland.

• Rate lock: With this protection, your insurance rates are locked in until you add/remove drivers or add/remove vehicles.
• Diminishing deductible: Every year that you don’t file a claim, you receive a lower deductible by $100. This occurs until you reach the $500 limit.
• Accident forgiveness: There is no additional surcharge after an at-fault accident, as long as you’ve been an Erie customer for at least three years.
• Pet injury coverage: Receive up to $500 for pet veterinary care if it was injured during an accident.
• New car protection: If your car is 24 months old or newer and is declared a total loss, Erie replaces it with a new model instead.
• Better car protection: If the car is 24 months old or newer and is declared a total loss, Erie pays for a model two years newer or pays off the auto loan.
• Rental car coverage: This plan is included with comprehensive coverage, but you can pay extra to add upgrades such as an SUV instead of a sedan or for luxury cars.

If you are shopping for car insurance quotes, it makes sense to add Erie to the list of providers you check out.

To learn more about the auto insurance provider, check out our review of Erie auto insurance.

#3 State Farm Auto Insurance

Our third choice for an auto insurance provider in Maryland is State Farm Insurance, one of the largest insurance companies in the U.S. It ranks 36th on the Fortune 500 list and has over 83 million policies and accounts, writing over $40 billion in premiums in 2019 alone according to the National Association of Insurance Commissioners (NAIC). 

We recommend State Farm if you are looking to bundle your auto insurance policy with home or life insurance to save money. You can also find options for State Farm motorcycle insurance, boat insurance, ATV insurance, motorhome insurance, and more.

State Farm car insurance also has some additional coverage options:

• Rental and travel expense coverage: With Car Rental Expense, State Farm will cover a rental car while your car is being repaired after a covered claim (up to the limits you choose). With Travel Expenses, State Farm will pay for meals, lodging, and transportation (up to $500) if you get in an accident more than 50 miles from home and can’t get home. It also covers a return trip to pick up your car. Finally, State Farm auto insurance can pay up to $500 toward a deductible after having an accident in a rental car.
• Rideshare coverage: If you drive for Uber or Lyft, you should add this option to your policy. That’s because a standard auto policy doesn’t cover commercial use of your vehicle. You are usually covered by the rideshare company when you are driving to pick up a person or drop them off, but you aren’t covered when you are waiting to accept a trip from the app.
• State Farm roadside assistance: State Farm offers emergency road service that includes one hour of labor at the breakdown site, towing to the nearest repair shop, fluid delivery, jump-starts, spare tire installation, and lockout services.

State Farm is very appealing for budget-conscious drivers, as the company offers a good selection of discounts, which include: 

• Safe driving discounts: You can get discounts for having a clean driving record, no accidents or moving violations for three years, completing a defensive driving course, putting your kids through driver’s ed, and being a good student away at school.
• Safe vehicle discounts: With State Farm, you can get discounts for having a modern vehicle with safety features and anti-theft mechanisms. However, at a certain point, high-tech safety features may cost more to repair and can increase overall rates.
• Loyalty discounts: You can also get up to 20 percent off by insuring multiple vehicles, and 17 percent off by bundling auto with another policy like homeowners insurance or life insurance.

Reviews of State Farm insurance are largely positive. It has an A++ from AM Best and received 3.0 out of 5.0 from J.D. Power for claims servicing. Overall, State Farm auto insurance customers are happy with their coverage and enjoy affordable rates.

To learn more about the auto insurance provider, check out our review of State Farm auto insurance.

#4 Allstate Auto Insurance

Another car insurance provider that we recommend is Allstate. Now one of the largest publicly held personal property and casualty insurance companies in the United States, Allstate serves more than 16 million American households. But unlike some other national car insurance companies, Allstate auto insurance works through a network of local agents to provide coverage.

Allstate has a Superior financial strength rating with AM Best and an A+ rating with the BBB. In addition to these basic types of coverage, Allstate auto insurance offers:

• Rideshare insurance for those who drive for ride-for-hire services like Uber or Lyft
• Classic car insurance for those with antique vehicles, custom builds, and hot rods
• Mexican travel insurance for policyholders who drive their cars into Mexico
• Custom parts coverage for those who have installed aftermarket parts or sound equipment

There are a number of ways to get discounted rates for your Allstate auto insurance, including bundling with other policies like Allstate motorcycle insurance, home insurance, renters insurance, and more. Other discounts include:

• New car discounts for the first owners of a vehicle
• Multi-car and multiple-policy discounts for customers who bundle home and auto insurance policies
• Student discounts for drivers under 25
• Anti-lock brake and anti-theft discounts for equipped cars
• Early signing discounts for policyholders who sign early
• EZ pay plan discounts for policyholders who use Allstate’s automatic withdrawal feature
• Allstate eSmart^® discounts for policyholders who go paperless
• FullPay^® discounts for customers who pay their full premium at one time
• Safe driving discounts for policyholders who meet safe driver requirements

To learn more about the auto insurance provider, check out our review of Allstate auto insurance.

#5 Geico Auto Insurance

Another company that we recommend for Maryland drivers is Geico. This provider is the second-largest auto insurance company in the U.S. and is known for its affordability and smooth claims experience, providing auto insurance to millions of people.

Geico has an A++ rating from AM Best for financial strength, an A+ rating from the BBB, and a score of 3.0 out of 5.0 from J.D. Power for claims servicing. The company also has plenty of five-star reviews online from happy customers.

Overall, Geico auto insurance provides the six types of standard car insurance, as well as roadside assistance coverage for a small fee – Geico’s website says you can get it for as little as $14 per year. Compared to AAA’s cost of $50 to $100 per year, that’s a pretty good deal. Here’s what you get with Geico’s roadside assistance:

• Jump-starts
• Spare tire installation
• Towing to a repair shop
• Lockout services up to $100

We recommend Geico for Maryland auto insurance because of its many extras and discounts, allowing you to personalize your auto insurance to your needs. It is also one of the most affordable auto insurance companies, after USAA.

To learn more about the auto insurance provider, check out our review of Geico auto insurance.

What Are Maryland's State Requirements?

Did you know that each state sets its own rules about insurance coverage? Most states require a combination of property damage liability, bodily injury liability, and occasionally personal injury protection (PIP). A few states also require underinsured motorist coverage plus uninsured motorist coverage.

In Maryland, the state's car insurance requirements correspond to the following minimum coverage levels:

• $30,000/$60,000 bodily injury liability per person/per accident
• $15,000 property damage liability per accident
• $30,000/$60,000 uninsured/underinsured motorist coverage per person/per accident
• $15,000 uninsured/underinsured property damage coverage per accident

These limits apply strictly to the other person’s property and injuries. If you cause an accident in Maryland, none of these policies are going to cover your expenses. Furthermore, Maryland is an at-fault state. That term means whoever caused the accident is responsible for the physical damages.

If you choose minimum coverage auto insurance, you might be held personally liable if you cause additional damage beyond those limits. All it takes is for you to cause an accident and total a car valued at more than $15,000, and you will find yourself in a financial mess. That’s why it’s not typically wise to have minimum coverage with your Maryland auto insurance policy.

Instead, you should consider increasing the limits and adding some of these coverages as well.

In addition, it is a misdemeanor to drive without auto insurance in Maryland, according to the Maryland MVA. You could have to pay up to $2,000 (court fees included). The state can also confiscate your tags and suspend or revoke your license, plus you could do jail time.

It’s not wise to drive without protection, especially when you can find cheap car insurance from some top providers.

Use our tool below to start comparing Maryland auto insurance quotes:

Alternative Auto Insurance In Maryland

If you can’t find Maryland auto insurance coverage because of a poor driving record or other problems, your only other option is the Maryland Auto Insurance Fund (MAIF). The coverage is going to cost much more, so you will want to focus on becoming a safe driver to lower your rates over time.

The provider offers the same coverage options and terms as mainstream insurers. While it works similar to the standard auto insurance companies, Maryland Auto doesn’t take into account your credit score. The company also allows you to pay the policy in full, pay in installments, or finance the premium with a third-party lender.

What Is It Like Driving In Maryland?

Maryland boasts of more than four million licensed drivers. What’s interesting about the demographics of Maryland is that more than 600,000 of those drivers are 65 or older.  In 2018, the number of fatal crashes decreased to 71, in comparison to 93 for the previous year, according to the Maryland Motor Vehicle Administration.

At 15-and-three-quarters years old, a teen can get a learner’s permit in Maryland. That teenager driver must then complete 60 hours of training with a licensed driver 21 years or older. The minimum age to receive the provisional license is 16-and-a-half years old.

While the teen is under the age of 18, there may not be any other non-family member passengers under the same age. Then, the driver may have the provisional license converted to a full driver’s license at the age of 18.

How To Find Cheap Maryland Auto Insurance Quotes

If you want to find cheap car insurance coverage in Maryland, we have a few tips for you.

• Comparison shop: We always recommend getting a minimum of three auto insurance quotes. This shopping process helps you find the best deal. Don’t be afraid to shop periodically to make sure you are still with the best provider.
• Look at discounts: Each company has its own list of available discounts. Make sure you get everything you qualify for.
• Consider the car you insure: Some vehicles cost more to insure, while some models are the cheapest cars for insurance. Before you buy a car, get a quote to see where it will stand.
• Work on your credit: Having good credit gets you a lower rate because you are seen as responsible. Pay your bills on time and improve your credit score.
• Play with policy terms: Change the deductible and coverage limits to see if you can find a better rate. Just don’t alter the policy in a way that will hurt you after an accident.

It might take you an hour to get all of the rates you want, but it will be well worth it when you see the savings you have been missing. 

You can use the tool below to collect and compare auto insurance quotes from providers available in your state:

Methodology

In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

• Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
• Availability: We consider availability by state as well as exclusions for specific groups of drivers.
• Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
• Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
• Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
• Technology: Auto insurers with mobile apps, advanced online services, and telematics are more likely to meet consumer needs.

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