Cheap Maryland Low-Income Car Insurance for Families and Individuals

Maryland does not have a government car insurance program for low-income drivers. MoneyGeek researched the most affordable car insurance companies in Maryland to assist low-income drivers in saving money. We found that Erie has the cheapest car insurance in Maryland for low-income families and individuals.

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Last Updated: 4/19/2022
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Your income does not influence your car insurance premium. The two most significant factors in determining car insurance rates in Maryland are adding a teen driver to the policy and the age of the driver.

MoneyGeek found the cheapest options for low-income individuals and families with good credit scores or poor credit scores.

Is There Car Insurance for Low-Income Families and Individuals in Maryland?

In Maryland, there is no government car insurance program for low-income individuals and families. Drivers know car insurance is a requirement; however, the Insurance Research Council reports that 14.1% of Maryland drivers are uninsured. For some, it could be the cost that keeps them from purchasing car insurance.

State minimum coverage is your best option for low-income car insurance in Maryland. Pay-per-mile insurance in Maryland might be a viable option for low-income drivers looking to save money that don't have high mileage.

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Does Maryland Have a Government Program to Support Low-Income Drivers with Insurance?

Car insurance assistance for low-income drivers is not available in Maryland. You must shop and compare quotes from several companies to find the best deal.

MoneyGeek researched the most affordable car insurance options in Maryland to help low-income drivers find cheap policies that meet their needs while saving them money.

The Cheapest Maryland Car Insurance Companies for Low-Income Drivers

Auto insurance companies cannot take your income into consideration when calculating your car insurance rates in Maryland, but other criteria, such as your age and credit score, are, and they may relate to your low income.

Minimum coverage car insurance is often the cheapest option for low-income drivers in Maryland. MoneyGeek found that Erie has the best rates for different types of low-income drivers.

MoneyGeek also researched the most affordable car insurance for a variety of age groups and families with low incomes.

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The Cheapest Maryland Car Insurance Companies for Low-Income Families

While income has no effect on car insurance rates, low-income families should be aware that their credit score does. In Maryland, MoneyGeek’s sample single parent rates vary by around $2,736 per year depending on a poor or good credit score. And charges for a couple with a kid vary by roughly $3,486 per year for a poor credit score versus a good credit score.

On average, the most affordable insurers in Maryland for a couple with a kid and a poor credit score are:

  • Erie: $6,711 per year
  • Allstate: $6,923 per year

At around $4,879 per year, USAA is the cheapest choice for couples with a kid and poor credit. But, USAA is solely for military personnel and their families.

If you're a single parent with a kid and have poor credit, your two best car insurance options are:

  • Erie: $4,906 on average per year
  • Travelers: $5,286 on average per year

Single parents with a kid, poor credit, and a military background may be eligible for USAA, costing around $3,598 per year.

Low income does not mean poor credit. View the table below to find the cheapest option for your profile.

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  • Company
    Annual Rates
  • USAA
    $2,240
  • Erie
    $3,054
  • Travelers
    $3,291
  • Allstate
    $3,754
  • MetLife
    $4,090
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The Cheapest Maryland Car Insurance Companies for Low-Income Individuals

MoneyGeek’s average 40-year-old driver in Maryland pays around $796 more per year with a poor credit score over a good credit score.

MoneyGeek found that the cheapest insurance companies for adult low-income drivers in Maryland are:

  • Erie: $1,533 per year on average
  • Travelers: $1,688 per year on average

At roughly $1,114 annually, USAA is the most affordable choice for eligible military personnel and their families.

A poor credit score isn't necessarily a direct indication of a low income. For an adult driver with good credit, Erie charges around $954 annually, Travelers costs about $1,051 a year, and USAA is around $694 a year.

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  • Company
    Annual Rates
  • USAA
    $694
  • Erie
    $954
  • Travelers
    $1,051
  • Allstate
    $1,099
  • GEICO
    $1,239

The Cheapest Maryland Car Insurance Companies for Low-Income Students

Young student drivers in Maryland pay more for car insurance due to inexperience. As a result of their low income, students' car insurance payments take up a large portion of their budget, even if income doesn’t affect a college student's premium.

On average, the following Maryland car insurance providers offer the cheapest rates for student drivers with poor credit:

  • Erie: $3,648 per year
  • Travelers: $4,017 per year

Students from military families may save money by insuring their cars with USAA, the least expensive option, at around $2,652 annually.

Poor credit isn't a given just because you have a low income. With a good credit score, student drivers in Maryland may expect to pay around $2,271 with Erie, roughly $2,501 per year with Travelers, and about $1,651 annually through USAA.

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  • Company
    Annual Rates
  • USAA
    $1,651
  • Erie
    $2,271
  • Travelers
    $2,501
  • Allstate
    $2,615
  • GEICO
    $2,950

The Cheapest Maryland Car Insurance Companies for Low-Income Seniors

Senior drivers' insurance rates tend to be higher than middle-aged drivers, and their credit scores also affect rates. Poor credit scores result in an increase in insurance rates of around $878 per year for a 70-year-old MoneyGeek sample driver in Maryland compared to one with good credit.

The companies with the most cost-effective average rates for senior drivers in Maryland with poor credit are:

  • Erie: $1,574 per year
  • MetLife: $1,887 per year

USAA is the cheapest choice for senior drivers with a military background in Maryland at around $1,176 a year.

Senior drivers with a low income do not automatically have poor credit. Erie costs around $980, while MetLife charges roughly $1,175 for a senior driver with good credit in Maryland. If eligible, USAA is around $732 annually.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $732
  • Erie
    $980
  • MetLife
    $1,175
  • Allstate
    $1,304
  • GEICO
    $1,319

Does Income Affect Car Insurance Rates in Maryland?

Car insurance companies in Maryland do not consider your income when determining your premium. Other things that could relate to income, though, may come into play.

For example, young drivers in Maryland pay more for car insurance than middle-aged drivers because of inexperience — insurance companies see them as a higher risk for accidents. These drivers are likely to have a lower income since they are just starting their careers, so the higher premium affects their budget a great deal.

When determining the cost of car insurance in Maryland, MoneyGeek found the factors insurance companies weigh the most heavily that could relate to low income:

  • Adding a teen driver.
  • Age of driver.
  • Credit score.

Other factors Maryland car insurers consider when calculating premiums are car model and coverage levels.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    The biggest factor in Maryland is the addition of a teen driver, making a policy 3.2x more expensive.

  • Age of Driver

    In Maryland, premiums for young drivers may be 2.4x higher than for middle-aged drivers.

  • Credit Score

    A driver’s poor credit score may cause them to pay 2.1x more than with a good credit score.

  • Car Model

    Insurance might be 2.0x more expensive depending on the model of the car.

  • Coverage Levels

    Purchasing full coverage insurance costs 1.7x more than the state minimum.

Frequently Asked Questions About Low-Income Car Insurance in Maryland

When you’re ready to search for low-income car insurance in Maryland, you may encounter questions. MoneyGeek answers the most frequently asked questions below to help you with Maryland low-income car insurance for individuals and families.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Maryland using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Maryland.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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