Cheapest Car Insurance for Low-Income Drivers in Maryland (October 2024)


Progressive is the cheapest car insurance for individual drivers with low income and poor credit history in Maryland at $76 per month. For families with low income, Kemper offers a rate of $69 per month. Maryland does not have state-backed car insurance programs for families and individuals with low income. Finding the most affordable provider and exploring available discounts can help manage costs.

Although minimum coverage will help you drive legally, it has downsides. For example, it may not cover all damages in an at-fault accident.

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Cheapest for Individuals With Low Income

Progressive is the cheapest car insurance provider in Maryland for individual drivers with low income and poor credit history. Its average minimum coverage premium is $76 per month or $908 per year.

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Cheapest for Families With Low Income

Kemper is the cheapest car insurance provider in Maryland for families with low income. Its average minimum coverage premium is $69 per month or $822 per year.

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Cheapest for Senior Drivers With Low Income

Progressive is the cheapest car insurance provider in Maryland for seniors with low income and poor credit scores. Its average minimum coverage premium is $81 per month or $974 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the Maryland Insurance Administration to get the cheapest average costs for drivers with low income in Maryland.

20,151Quotes Analyzed
 
9Companies Compared
 
54ZIP Codes

Does Maryland Offer Low-Income Insurance?

Car insurance companies in Maryland do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations can increase your rates significantly. To find the cheapest rates, it's essential to compare quotes from several insurance companies. This helps you see the range of options and choose the most affordable one.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Pay-per-mile insurance is also the best option to save for drivers who rarely drive. MoneyGeek rounded up the cheapest insurers for drivers with low income in Maryland to help you save.

Minimum Car Insurance Requirements in Maryland

To drive legally in Maryland, you must have car insurance that adheres to the state's minimum car insurance requirements. Your policy should include at least the following coverage amounts:

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

Choosing the right car insurance policy involves understanding the differences between a liability-only car insurance policy, which covers damages to others if you're at fault in an accident, and a full coverage car insurance policy. The latter includes collision and comprehensive coverages, safeguarding your vehicle against various incidents, such as theft or natural disasters.

Assessing the risks and benefits of different coverages will help determine the best policy for your situation.

Cheapest Car Insurance for Individuals With Low Income in Maryland

Having a poor credit history can lead to higher car insurance premiums, especially for drivers in Maryland with low income. Insurers may view a low credit-based insurance score as a higher risk, resulting in increased rates.

The cheapest car insurance companies for drivers with low income and poor credit in Maryland are:

  • Progressive: $908 per year; $76 per month
  • Nationwide: $1,000 per year; $83 per month

Drivers with good insurance credit can get the cheapest car insurance in Maryland from:

  • State Farm: $703 per year; $59 per month
  • Travelers: $765 per year; $64 per month

Maintaining at least state minimum coverage is vital, as driving without insurance in Maryland is illegal. Violations can result in a misdemeanor charge, suspension of your driver’s license and vehicle registration and fines ranging from $175 to $1,000, among other penalties.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Progressive$908$76
Nationwide$1,000$83
GEICO$1,215$101
Kemper$1,386$116
Travelers$1,453$121
State Farm$1,453$121
Allstate$1,745$145
Erie$1,816$151
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Cheapest Car Insurance for Families With Low Income in Maryland

Income does not directly influence car insurance premiums, but your family setup plays a role. In Maryland, a single parent with a teen pays up to $1,573 more annually than married couples with a teen, who benefit from rates cheaper by the same amount per year.

The most affordable car insurance companies for married couples with a teen in Maryland are:

  • Kemper: $822 per year; $69 per month
  • Progressive: $940 per year; $78 per month

For single parents with a teen, the cheapest options are:

  • Progressive: $1,686 per year; $140 per month
  • Kemper: $2,095 per year; $175 per month

Family type impacts car insurance rates, with single parents facing higher premiums than married couples. This difference underscores the importance of a solid credit history, which is key to securing more affordable car insurance.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
Kemper$822$69
Progressive$940$78
GEICO$1,116$93
Travelers$1,193$99
Nationwide$1,427$119
Allstate$1,496$125
State Farm$1,549$129

Cheapest Car Insurance for Seniors With Low Income in Maryland

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you have a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

  • Progressive: $81 per month; $974 per year
  • Nationwide: $96 per month; $1,157 per year

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. Maryland has specific guidelines for seniors getting car insurance to ensure they meet certain requirements.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Progressive$974$81
Nationwide$1,157$96
GEICO$1,277$106
State Farm$1,547$129
Kemper$1,756$146
Erie$1,848$154
Travelers$1,943$162
Allstate$2,090$174
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in Maryland?

Income doesn't directly affect car insurance rates in Maryland. However, if a low income leads to a poor credit record, it can result in higher rates. Conversely, a good credit record can help you get lower rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

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    Driving Record

    At-fault accidents and moving violations increase rates for drivers. Insurers see these as indicators of risky behavior, leading to higher premiums.

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    Age and gender

    Age and gender can influence car insurance rates. Younger drivers and males often face higher premiums due to statistically higher accident rates.

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    Credit history

    Credit history can affect car insurance rates. Insurers use credit-based insurance scores to predict the likelihood of filing claims.

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    Location

    Where you live can impact your car insurance rates. Urban areas with higher traffic and crime rates often result in higher premiums.

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    Vehicle type

    The type of vehicle you drive affects your car insurance rate. Luxury and sports cars usually cost more to insure due to higher repair costs.

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    Coverage levels

    Different coverage levels impact the cost of car insurance. More comprehensive coverage will lead to higher premiums than state minimum coverage.

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    Insurance company

    Different insurers have different methodologies and discounts, so it's important to compare quotes to find the best rate.

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    Claims history

    A history of filing a claim can lead to higher rates as it indicates a higher risk to insurers. If you can afford to pay for your own repairs, it might pay not to file a claim.

How to Save on Car Insurance in Maryland

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Maryland is possible with the right strategies. Here are some tips to lower your premiums:

  1. 1
    Choose minimum coverage

    Opting for state-mandated minimum coverage can help you save while meeting legal requirements. This ensures you adhere to legal mandates without overextending your budget.

  2. 2
    Comparison shop

    Getting quotes from multiple insurers helps compare rates and discounts, potentially leading to the lowest rates available. Shopping locally might uncover the best deals for you.

  3. 3
    Look for discounts

    Insurance companies offer discounts for being a good student, having a safe driving record, being a military member or bundling your auto policy with other insurance.

  4. 4
    Increase your deductible

    Choosing a higher car insurance deductible for collision or comprehensive coverage lowers your monthly premium. Ensure you can afford the deductible in case of an accident.

  5. 5
    Consider pay-per-mile insurance

    Pay-per-mile insurance could be an excellent option if you're a low-mileage driver. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

  6. 6
    Bundle your policies

    If you need additional insurance like homeowners or renters insurance, bundling them with your auto policy can lead to discounts. The best home and auto bundles can save around $496 yearly.

  7. 7
    Drive a cheaper car

    Your car's make, model and year influence your insurance costs significantly. Driving the cheapest cars to insure can save you hundreds annually.

FAQ: Low-Income Car Insurance in Maryland

Finding affordable car insurance rates for drivers with low income in Maryland can be challenging. Here are answers to some of the most commonly asked questions about low-income car insurance in the Old Line State.

Does Maryland have a state-backed low-income car insurance program?

How can low-income families get affordable car insurance in Maryland?

Does your income affect the cost of car insurance in Maryland?

What are the benefits of usage-based telematics programs for drivers with low income in Maryland?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.