Why Is Car Insurance So Expensive in Maryland?
Maryland is the fifth-most expensive state for auto insurance. The average Maryland car insurance rate is $2,127 per year, which is more expensive than the national average of $1,424 per year. Premiums in Maryland can be pricey due to personal factors or state-specific reasons, like highway density and the percentage of the population that lives in urban areas.
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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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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.
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.
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.
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.
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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
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- StateAverage Driver (40-Year-Old)16-Year-Old25-Year-Old
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
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- StateNo ViolationSpeeding TicketAccidentDUI
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
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- StateExcellent Credit ScoreFair Credit ScorePoor Credit Score
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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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.
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.
Bundle your home & auto policies
Many insurance companies let you bundle your home and auto insurance to save on monthly premiums.
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.
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.
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.
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.
About the Author
- Maryland.gov. "Insurance Requirements for Maryland Vehicles." Accessed April 20, 2022.