Why Is Car Insurance So Expensive in Maryland?


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Updated: May 20, 2024

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Maryland's average premiums are more expensive than the national average car insurance rate of $1,424 per year. These rates are based on a 40-year-old driver with a clean driving record and full coverage.

Auto insurance in Maryland is relatively expensive because of its high highway and urban population density. Prices also increase because the state requires uninsured/underinsured protection (UM/UIM).

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Key Takeaways

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Maryland’s insurance rates are expensive because of its high state minimum coverage, requiring a 30/60/15 liability limit and uninsured/underinsured motorist coverage.

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The state has a relatively high highway and urban population density, which translates to a greater potential for car accidents and, thus, higher car insurance costs.

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While premiums are expensive in Maryland, MoneyGeek found ways to save, like bundling with other insurance types.

Why Maryland Car Insurance Rates Are So Expensive

Several factors affect car insurance rates in Maryland, which is among the most expensive states for auto coverage. One is the state's higher-than-average highway density. Maryland also requires drivers to carry mandatory uninsured motorist coverage, and Maryland state minimum coverage limits are relatively high.

High Highway Density

Maryland has the highest highway density rate in the country at 17.6, meaning there were 17.6 million miles driven per highway mile in the state. States that have many dense highways are more likely to have vehicular crashes. Therefore, more drivers file claims, increasing the cost of car insurance in Maryland.

Higher-than-Average Uninsured and Underinsured Drivers Rates

Maryland has an uninsured driver rate of 14%. Costs could be much higher after a collision with an uninsured or underinsured driver. If you drive uninsured, you could end up paying $2,500 in fines, according to Maryland.gov.

Higher-than-Average Vehicle Theft Rates

MoneyGeek’s data shows that in Maryland, there is a vehicle theft rate of 186, meaning there were about 186 instances of motor vehicle theft per 100,000 people in the most recent year where data was available. Auto insurance rates increase when theft rates are high since drivers are more likely to file claims.

Extensive State Minimum Requirements

Compared to other states, Maryland law requires a high state minimum requirement with a 30/60/15 liability limit. Due to this increased cost, insurance companies tend to raise rates across the state.

Unlike other states that only require liability insurance, Maryland law requires drivers to have uninsured and underinsured motorist coverage. If you’re in an accident with an uninsured driver, you’re covered.

Why Might Car Insurance in Maryland Be Expensive for You?

Although Maryland’s auto insurance rates are expensive due to factors specific to the state, personal factors can also affect your premiums. Your location, insurance provider, driving record, age, credit score and car model play a role in the cost of your car insurance.

Where You Live

Your zip code can influence your insurance premiums in Maryland. While Maryland rates are more expensive than the national average, you could pay either more or less because of where you live.

Insurance Company

You may want to find a suitable insurer that offers a balance of quality service at a reasonable price, or you may be more focused on cost savings. MoneyGeek conducted thorough research to find the best and cheapest auto insurance companies in Maryland.

Our guides can help you choose an insurance provider based on your unique needs and priorities. To get a close estimate of your rates for auto insurance, you can use MoneyGeek’s Maryland car insurance calculator.

Compare Auto Insurance Rates

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Age

Car insurance rates are also influenced by how old you are. Most insurance companies consider drivers under 25 years old to be high-risk drivers. In contrast to a 40-year-old driver, their 25-year-old counterparts pay $256 more in annual premiums on average, and teens can pay almost three times as much.

Average Car Insurance Rates by Age in Maryland
State
Average Driver (40-Year-Old)
16-Year-Old
25-Year-Old

Maryland

$2,127

$6,340

$2,383

Driving Record

Drivers with clean driving records pay significantly cheaper rates because they are less likely to file a claim. In turn, DUI offenders or those with traffic violations pay higher premiums. In the table below, you’ll find that drivers with a DUI pay over $1,000 more for a policy than people with no driving violations.

Average Car Insurance Rates by Driving Record in Maryland
State
No Violation
Speeding Ticket
Accident
DUI

Maryland

$2,127

$2,506

$2,970

$3,178

Credit Score

Additionally, credit scores can affect how much your car insurance will cost. Individuals with poor credit are perceived to be more likely to file a claim, and insurers raise rates accordingly. In Maryland, individuals with poor credit pay almost $2,000 more than those with excellent credit.

Average Car Insurance Rates by Credit Score in Maryland
State
Excellent Credit Score
Fair Credit Score
Poor Credit Score

Maryland

$1,868

$2,893

$3,826

Car’s Make and Build

MoneyGeek found that the older your car, the cheaper it is to insure. Drivers with sports cars usually pay higher premiums than drivers of sedans or minivans. MoneyGeek’s Maryland car insurance calculator allows you to compute rates according to your individual needs.

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Rates updated:

Jul 12, 2024

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What Is the State Minimum Requirement of Maryland?

When stacked against other states, minimum requirements in Maryland are comparably extensive. Drivers in Maryland need to be covered for the following:

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

If you want to see how Maryland stacks up against states like California or Texas, you can check how much car insurance is mandatory in each state.

How to Save on Car Insurance in Maryland

Even if Maryland’s average annual premiums are higher than the national average, there are ways Maryland drivers can find savings. MoneyGeek found that you can sometimes lower your premiums if you bundle car insurance with other insurance, shop around for quotes, find discounts with your insurer, increase your deductibles, try pay-per-mile insurance or remove coverage you don’t need.

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    Shop around & compare quotes

    It’s wise to choose a policy that best suits your needs, and shopping around for a quote can help you do just that. You can use MoneyGeek’s tool to find a top-rated auto insurer.

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    Bundle your home & auto policies

    Many insurance companies let you bundle your home and auto insurance to save on monthly premiums.

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    Ask about discounts

    There are many kinds of deals, so it’s important to find a car insurance discount that is appropriate for you. Car insurance companies commonly offer discounts based on your age, driving behavior or car telematics.

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    Increase your deductible

    It’s possible to lower your monthly premium by increasing your car insurance deductible. Keep in mind that if you need to file a claim, you’ll pay more out-of-pocket.

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    Consider pay-per-mile insurance

    Consider a pay-per-mile insurance policy to find savings if you drive fewer than 12,000 miles per year or don’t drive often.

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    Assess how much coverage you really need

    Comprehensive and collision coverage may not fit everyone’s needs. Figure out how much insurance coverage you need so you have the right amount of protection.

Frequently Asked Questions

Drivers in Maryland may wonder why Maryland car insurance is so expensive, so MoneyGeek broke down several reasons why. We also listed auto insurance companies that might fit your needs.

Why is car insurance so expensive in Maryland?
What is the state minimum requirement in Maryland?
How much is the average cost of Insurance in Maryland?
How much is the cheapest insurance in Maryland?
What is the best insurance carrier in Maryland?

About Mark Fitzpatrick


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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick 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.


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