Why Is Car Insurance So Expensive in Maryland?

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).

• Why Maryland Car Insurance Is Expensive
• Why Maryland Car Insurance Might Be Expensive for You
• Maryland State Minimum Requirements
• How to Save on Maryland Car Insurance

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.