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.

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.

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.

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.

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.

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.

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.

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:

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.