Maryland Car Insurance

Last Updated on August 25, 2020

Maryland drivers can purchase car insurance from dozens of different providers. Providers vary widely in terms of price and customer service. However, Maryland car insurance prices tend to be fairly competitive across major providers.

If you’re looking for the cheapest car insurance in Maryland, then our analysis suggests that GEICO, USAA, Selective Insurance, Nationwide, and Cumberland Insurance offer some of the lowest prices in the state. MAIF Insurance, IFA Auto Insurance, Cincinnati Insurance, and Allstate, among others, also offer competitive prices.

The Best Car Insurance for Teen Drivers in Maryland

maryland car insuranceAdding a teenage driver to your car insurance plan can be expensive. You can expect car insurance premiums to increase significantly after adding a teen driver to your insurance plan.

Generally speaking, all major car insurance companies in Maryland make it easy to add a teen driver to your insurance plan. Some companies make it more expensive than others, although you can expect a significant increase at all major insurance companies.

Fortunately for parents, you don’t need to apply for additional car insurance in Maryland when your teen driver has a learner’s permit. In Maryland, teen drivers can get a learner’s permit 3 months before they turn 16. As long as your teen driver has a learner’s permit, and they’re abiding by the rules of that learner’s permit, you don’t need to purchase additional car insurance. You can continue using your ordinary car insurance policy.

Once your teen driver gets a full license, however, you will need to upgrade your car insurance if you want your teen driver to legally drive your vehicle. Teen drivers who are at least 16.5 years of age with a learner’s permit can apply for a provisional driver’s license in Maryland. Talk to your car insurance company about adding a teen driver to your insurance plan.

Baltimore Drivers Pay the Most for Car Insurance

Baltimore is the largest city in Maryland. Understandably, drivers in Baltimore pay some of the highest car insurance prices in the state. Drivers in an urban area will almost always pay more for car insurance than drivers in rural areas. You’re more likely to get into an accident when driving in a city. Crime rates also tend to be higher in more densely-populated areas.

Generally speaking, auto insurance prices are competitive across the state of Maryland. Even if you live in the heart of Baltimore, you can still find cheap prices on car insurance. However, drivers in smaller cities and more rural areas of the state will typically pay lower rates for car insurance. Drivers in Annapolis, for example, will pay significantly less for car insurance than drivers in Baltimore.

Keep in mind that your ZIP code plays a key role in the price of car insurance – particularly comprehensive coverage. If you park your car in a crime-prone ZIP code overnight, for example, then it’s more likely to be damaged, vandalized, or stolen than if you parked it in a safer ZIP code. Your ZIP code has a significant impact on the price you pay for car insurance in Maryland.

Auto Insurance Requirements In Maryland

The state of Maryland offers fairly standard and straightforward auto insurance liability regulations. Liability coverage protects drivers when an accident in which they are at fault causes financial issues for the other motor vehicle operators and passengers. This includes coverage for property damage and bodily injury they may cause. The minimum liability levels set by Maryland law are 20/40/15 (see the chart below).

Maryland also requires that drivers obtain uninsured motorist coverage as part of their car insurance policies. This coverage will help with any expenses incurred if you are involved in an accident with a vehicle operated by someone without insurance. The minimum requirements are also 20/40/15 (see the chart below).

Last, but not least, Maryland requires a minimum of $2500 PIP if you opt-in (personal injury protection). This coverage helps with any medical expenses or lost wages, no matter who is at fault. Some drivers with excellent health insurance can waive this portion and save on premiums. One caveat would be that most health insurance companies will not cover lost wages or any passenger injury costs.

Collision and comprehensive add-ons are available options for auto insurance policies in Maryland.

Coverage Type Required? Minimum Coverage Amount Required
Bodily Injury Liability Yes $20,000 per person
$40,000 per accident
Property Damage Liability Yes $5,000
Uninsured Motorist Bodily Injury No $20,000 per person
$40,000 per accident
Underinsured Motorist Bodily Injury No $50,000 per person
$100,000 per accident
Uninsured Motorist Property Damage No $15,000
Personal Injury No $2,500 per person named in the policy

Auto Insurance Requirements for Leased Vehicles in Maryland (MD)

Most leasing companies in Maryland typically require drivers of leased vehicles to maintain insurance coverage which exceeds the minimums set by Maryland state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

  • Bodily injury liability coverage: $100,000 per person/$300,000 per accident
  • Property damage liability coverage: $50,000
  • Comprehensive and collision coverage: $500 maximum deductible

Maryland Auto Insurance State Contact Information

Maryland Motor Vehicle Administration 
6601 Ritchie Highway, NE
Glen Burie, MD 21062
Maryland Insurance Administration 
525 St. Paul Place
Baltimore, MD 21202-2272
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