When it comes to getting low rates on auto coverage, shopping around is key. Prices can swing dramatically from one insurer to the next and depend on personal factors such as age, marital status and credit rating. To help drivers simplify their shopping and find cheap car insurance in Maryland, NerdWallet researched the three lowest estimates in the state for the following groups:
- Good drivers
- Young drivers
- Families with a teen driver
- Drivers with poor credit
- Drivers with one at-fault accident
- Retired drivers
Cheapest for good drivers
For drivers with no accidents, DUIs or moving violations; range: $808 to $1,695 a year
price
- $808/year
price
- $1,034/year
price
- $1,482/year
Among the three cheapest insurers, the average was $1,108 per year. While USAA scored significantly lower rates than the competition, only retired or active military and their families are eligible. For non-military shoppers, both Erie and Geico offer plentiful discounts and similar coverages. Erie’s service area is much smaller than Geico’s, however, meaning drivers may have to switch companies if they move out of Maryland.
Cheapest for young drivers
For drivers in their early 20s; range: $448 to $1,346 a year
price
- $448/year
price
- $885/year
price
- $1,028/year
Drivers in their early 20s, given their leaner coverage needs compared to older motorists, can score relatively cheap car insurance in Maryland. USAA notched an average premium that was about half its nearest competitor’s, but again, only retired or active military and their families qualify. Among the other two cheapest options, Erie distinguishes itself with an unusually high number of young driver discounts, including discounts for living with parents, being insured under a parent’s policy, taking a driver safety course and attending college full time.
Cheapest for families with a teen driver
For middle-aged couples with one teen driver; range: $987 to $11,650 a year.
price
- $987/year
price
- $1,165/year
price
- $2,110/year
USAA also came out as the cheapest option for families with a teen on the policy. USAA is only available to active or retired military and their families. For non-military folks, our research found that Erie wasn’t much more, about $15 per month extra. With a massive range of quotes for this category overall — nearly $11,000 between lowest and highest — shopping around is especially crucial.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range: $808 to $4,241 a year
price
- $808/year
price
- $1,413/year
price
- $1,482/year
Per Maryland law, insurers aren’t allowed to refuse or cancel a policy based on drivers’ credit scores, but they can use credit as a factor in pricing. USAA, which ranked as the cheapest option in our study, actually had the same average quote for drivers with poor credit as those with no credit issues. Given the same circumstances, Erie’s average premium was about $400 a year higher. Clearly each insurer handles credit scores a bit differently, which is why comparing estimates from a variety of companies is so beneficial.
Cheapest for drivers with one at-fault accident
Range: $994 to $3,945 a year
price
- $994/year
price
- $1,359/year
price
- $2,037/year
Having an at-fault accident on your record may lead to a higher premium. Exactly how much higher depends largely on the insurer. Both USAA and Erie showed increases in the range of $150 to $300 a year above their quotes for accident-free drivers, while Geico raised its premium by nearly $600. If you have an at-fault accident on your record, you may want to look for insurers that offer accident forgiveness, which could prevent rates from climbing after your first at-fault incident (or first in a while).
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting; range: $691 to $2,584 a year
price
- $691/year
price
- $873/year
price
- $1,099/year
Given their years of experience and reduced annual mileage, retired drivers should have little trouble finding cheap car insurance in Maryland. But there’s still plenty to save by shopping around. Our research showed roughly a $2,000 per year gap between the lowest and highest average quotes, proving retired drivers have as much incentive to compare quotes as their younger counterparts.
Minimum car insurance requirements in Maryland
Maryland drivers must carry liability insurance. This protection covers others’ injury treatment or property damage, up to your chosen limit, when you’re at fault for an accident.
The minimum coverage levels are:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Experts recommend buying more than the bare minimum to help ensure you have enough coverage in case of a severe crash and don’t have to pay out of pocket. You may also want to consider optional coverages such as collision, comprehensive and uninsured motorist coverage for a more balanced policy.
Check out NerdWallet’s guide to state car insurance requirements for more detail on the various parts of your Maryland auto policy.
Alternative car insurance in Maryland
Drivers who have been denied coverage by at least two car insurance companies could qualify for a policy through the Maryland Auto Insurance Fund. The organization was created to help drivers who can’t obtain standard insurance because of a checkered accident history, poor credit rating or other factors.
For more help finding Maryland auto coverage at the most competitive price, try NerdWallet’s anonymous car insurance comparison tool to possibly cut hundreds from your premium.
Methodology
For most categories, NerdWallet averaged rates for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits and 100/300 uninsured motorist coverage limits. We used a 2012 Toyota Camry in all cases.
To test rates for families with teen drivers, we used a 46-year-old woman and 47-year-old man with a 16-year-old son. Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage levels. The range described includes quotes retrieved by NerdWallet from the six largest insurers in the state. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com
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