Cheap Car Insurance in Maryland

The easiest way to find the cheapest car insurance in Maryland is by shopping comparatively.

Start by requesting quotes from several insurance providers, then take your time to research their policy offerings, financial strength, and customer reviews.

While finding cheap insurance is important, especially when you’re on a limited budget, it’s just as crucial to identify an insurance provider that can process your claim reliably and in a reasonable amount of time.

When it comes to pricing car insurance policies, your insurance provider considers several factors about you and the vehicle you drive, such as the make, model, year, and condition of your car’ as well as your age, gender, driving history, and geographic location.

Several characteristics of where your home is located are considered as well, including theft rates and traffic conditions in your area.

The information included below is meant to help you understand how providers calculate insurance rates so you can ask the right questions and obtain the lowest prices.

How Much is Car Insurance in Maryland?

marylandGetting an idea of the average price of car insurance in your area helps you understand if the quoted prices for your insurance policy are reasonable.

According to the National Association of Insurance Commissioners, the average cost of car insurance in Maryland increased approximately $68 between 2011 and 2015, which is about average for states in its area.

When compared with surrounding states, the average price of insurance premiums in Maryland is average as well, but when compared with the countrywide average, it’s slightly higher.

Average Cost of Car Insurance in Maryland   $1116.45
Average Cost of Car Insurance in District of Columbia   $1330.73
Average Cost of Car Insurance in Delaware   $1240.57
Average Cost of Car Insurance in West Virginia   $1025.78
Countrywide Average Cost of Car Insurance   $1009.38

It’s important to keep in mind that the make and model of your vehicle aren’t the only things that your insurance company looks at when calculating your rates.

It also factors in some characteristics pertaining to your geographical location, which we’ll elaborate on below.

Traffic Conditions

The traffic density and fatal accident rates in your area help insurance providers calculate risk when they determine your premiums.

It’s important to remember, though, that state averages aren’t always accurate representations of the statistics in metropolitan areas or rural areas with extremely low populations.

Urban areas are generally above average, whereas sparsely populated areas are typically below average.

According to the National Association of Insurance Commissioners 2017 report, Maryland’s traffic density (1,764,374) is calculated as the number of miles traveled by registered vehicles in the state against the miles of highway throughout the state.

It’s considerably higher than the U.S. average of 724,348. Maryland’s small size contributes to its higher traffic density.

In 2016, each registered vehicle traveled an average of 14,371 miles in Maryland, slightly more than the national average of 12,010.

Fatal accidents in Maryland occur at a rate of 0.11 per 1,000 cars.

Throughout the U.S., the fatal accident rate is slightly higher at 0.13 per the same amount of cars.

Vehicle Theft Rates

The Insurance Information Institute keeps track of the states with the most and the least auto thefts each year, and according to its 2017 report, Maryland hasn’t made either of these lists.

In 2016, there were an estimated 196.7 auto thefts per 100,000 residents in Maryland, according to the FBI.

The U.S. average is slightly higher, at 236 auto thefts per 100,000 residents.

Insurance providers may set lower comprehensive insurance rates thanks to these lower theft rates.

When shopping for a new vehicle, it’s best to find one that has low theft rates, especially if you’re hoping to secure the cheapest car insurance in Maryland.

The National Insurance Crime Bureau’s Hot Wheels Report indicates that the most commonly stolen vehicles in Maryland are the Honda Accord and Dodge Caravan.

Some other common theft targets in Maryland include the Toyota Camry, Honda Civic, and the Nissan Altima.

Population Density

Maryland’s population density may have an indirect effect on your premiums.

Areas with high population densities have more vehicles, more car accidents, and thus higher auto theft rates.

Throughout the U.S., the population density averages 95 persons per square mile.

Maryland is a small state geographically, but it’s located in the densely populated area surrounding the nation’s capital and therefore has a population density of 611 persons per square mile, which is significantly higher than the national average.

This may help explain Maryland’s higher than average insurance rates.

Disposable Income

There is a definite link between high disposable incomes, expensive vehicles, and insurance rates.

Insurers often increase rates to account for higher losses due to an area’s prevalence of expensive automobiles.

According to the National Association of Insurance Commissioners (NAIC), Maryland’s per capita disposable income per person in 2014 was $46,875, considerably higher than the national average of $40,859.

Companies with the Cheapest Car Insurance in Maryland

When you’re shopping for car insurance, it’s essential to first obtain quotes from a minimum of three different companies, and to research the customer reviews and policy offerings for each one.

By shopping around and taking the time to compare several providers, you’re more likely to choose a company that can offer you adequate coverage for your driving habits, and pay out your claim reliably and on time in the event of an accident.

It’s also wise to research each company’s financial strength and credit ratings.

Good ratings let you know that the insurance company has the available funds to pay your claims, even in the face of a colossal disaster necessitating high-volume claims processing.

Of course, you can also find a great insurance policy by shopping with insurance providers with strong reputations, such as one of the following:

Progressive:

Progressive has been insuring drivers in America since 1931 and has grown exponentially since its founding.

It now protects over 18 million drivers in the U.S. and Australia, offering its policyholders a wide variety of coverage and discount options.

It’s known for helping drivers insure their vehicles at affordable prices, particularly with its Name Your Price Tool which lets consumers set their rate.

Liberty Mutual:

Liberty Mutual offers several appealing inducements to its auto insurance policyholders, including a New Car Replacement program, a 12-month rate guarantee, and customizable coverage options that include reimbursements for sound systems and rental cars.

Travelers:

Travelers is the oldest insurance company in the U.S.

It began selling life insurance in the mid-1800s and has since expanded to sell home and auto insurance throughout the U.S. and several other countries across the globe.

Its auto insurance policies include roadside assistance, loan gap coverage, rental reimbursements, and competitive pricing.

USAA:

USAA sells home and auto insurance policies to members of the military and their immediate families at competitive prices.

It offers several discounts to policyholders including student and bundled policy discounts.

USAA has high customer satisfaction ratings and a favorable credit rating, indicating good financial strength.

What is Mandatory for Car Insurance in Maryland?

Most states have minimum auto insurance requirements.

According to the Maryland Insurance Administration, all vehicles and drivers in the state are required to carry both liability and uninsured/underinsured motorist coverage.

Insurance providers in the state must offer all drivers a minimum of $2,500 in personal injury protection coverage.

However, drivers do have the right to waive this type of insurance.

There are certain limits the government requires drivers to maintain for each type of mandatory insurance.

In Maryland, these minimums are as follows:

Liability Insurance:

  • $30,000 for injuries per person
  • $60,000 for total injuries per accident
  • $15,000 for property damage

Uninsured/Underinsured Motorist:

  • $30,000 for injuries per person
  • $60,000 for total injuries per accident
  • $15,000 for property damage

Drivers in the state are required to submit a signed Maryland Insurance Certification form when they register their vehicle or renew their registration.

This document is the only acceptable proof of insurance throughout Maryland.

It must be presented at the request of a police officer or the Maryland Vehicle Administration, and failure to do so can result in suspension of vehicle registration or driver’s license, as well as fines.

Carrying false proof of insurance can result in jail time.

How to Reduce the Cost of Your Car Insurance in Maryland

Although insurance can seem like a hefty expense, it doesn’t always have to be.

There are several ways that you can reduce your costs so that you’re receiving the cheapest car insurance in Maryland.

Some of the best ways to reduce your rate include:

  • Lower optional insurance on older vehicles
  • Bundle your insurance policies across home and life
  • Pay in full when you purchase your policy or set up automatic payments
  • Increase your deductible, though this means you’ll pay more out of pocket in case of an accident

Most of Maryland’s top insurance companies offer their policyholders discounted rates to reward them for things such as good driving, low mileage, vehicle safety features, and even having a teen driver on the policy with good school grades.

When you’re ready to purchase your insurance policy, make sure you keep the following information on hand so that you’re able to receive the best rate possible and receive any available discounts that your provider offers:

  • Vehicle information for all vehicles you wish to insure, including the make, model, year, condition, vehicle identification number, and overall value
  • Detailed information for all drivers in your household including their date of birth, driving history, and school grades for any student drivers (both high school and college)
  • Information about your home including address, detailed information regarding your parking situation, and your approximate budget

What Can Increase the Cost of Your Car Insurance in Maryland

Just as there are ways to reduce your insurance rates, there are also factors that can increase your premiums.

These go beyond the conditions in the area where you live and your age or gender.

Some of these include:

Make and model of your vehicle:

Vehicles that are common theft targets in your state or have high values attached to them often have higher insurance rates because of the high level of financial risk to your insurance provider.

A two-seater sports car will, therefore, cost more to insure than a four-door sedan.

Safety and crash test ratings:

The IIHS and NHSTA perform safety and crash tests on hundreds of new vehicles each year.

Choosing to drive a car that has been rated poorly in these tests or has not been tested at all usually means that you pay higher insurance premiums.

Driving Record:

Disobeying traffic laws by speeding, running traffic lights or stop signs, or driving while under the influence usually results in hefty fines and suspensions.

Traffic violations also lead to increases in insurance rates, and in more severe cases, a loss of your policy.

Take your time while driving and follow all mandated rules to keep your policy in good standing.

The above information should help you in your quest for the cheapest car insurance in Maryland.

Remember to ask about discount opportunities and bring three competitive quotes to the bargaining table.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.