Maryland Auto Insurance: Understanding The Unique System

Maryland auto insurance is mandatory and drivers are required to carry liability, uninsured and underinsured motorist coverage, and personal injury protection. The average cost of car insurance in Maryland is $1,305 per year, which is 15% less than the US average. However, the cost of car insurance depends on various factors, such as age, location, and driving history. Marylanders can choose from a range of insurance companies, including Geico, USAA, State Farm, Progressive, and Erie, which offer various coverage options, discounts, and features.

Maryland auto insurance discounts

• Multi-policy discounts: You can often get a discount by bundling two or more insurance policies with the same company, such as combining condo or home insurance with auto insurance.
• Multi-vehicle discounts: Insuring multiple vehicles under the same policy or combining auto insurance policies with family or friends can lead to savings.
• Military discounts: Some companies offer discounts for active military members, veterans, and their families.
• Senior discounts: Discounts are typically available for policyholders who are 55 or older.
• Homeowner discounts: If you own a home, you may be eligible for a discount on your auto insurance.
• Good student discounts: Students under 25 who are full-time high school or college students and maintain good grades (a B average or higher) are often rewarded with lower insurance rates.
• Good driver discounts: Drivers with a clean driving record (no at-fault accidents, DUIs, or speeding tickets) can usually get a discount.
• Defensive driving discounts: Taking a defensive driving course can result in a discount on your auto insurance.
• Driver training discounts: Completing a driver training course can also help lower your insurance rates.
• New car discounts: Insurers may offer discounts for newer car models, typically three years or newer.
• Safe car discounts: If your vehicle has safety features like anti-theft technology, you may be eligible for a discount.
• Paperless discounts: Opting to receive your documents electronically can sometimes lead to savings.
• Pay-in-full discounts: Paying your policy in full upfront may result in a discount.
• Accident-free discounts: Maintaining an accident-free driving record can earn you a discount on your monthly premium.
• Student away at school discounts: Some insurance companies offer discounts if your student driver attends school more than 100 miles away and only drives the insured vehicle during school vacations.
• Multiple automobiles discounts: Insuring multiple private-passenger automobiles primarily driven by persons residing at the same address can lead to savings.
• Passive restraint discounts: Vehicles equipped with factory-installed airbags or other passive restraint systems that meet federal safety standards may be eligible for a discount.
• Safe driver discounts: Programs like Drive Safe & Save offer discounts based on your driving behaviour, with higher discounts for safer driving.
• Steer Clear discounts: For drivers under 25 who have completed a safe driving program and maintained a clean driving record.
• Anti-theft device discounts: Installing an anti-theft device in your car may make you eligible for a discount.
• Safe driver discounts: Maintaining a safe driving record for at least five years can result in a discount.
• Recurring bill pay discounts: Setting up monthly recurring bill payments from your bank account may qualify you for a one-time discount.

Maryland auto insurance laws

Maryland's auto insurance laws require drivers to maintain a certain amount of car insurance coverage to remain legal. The state follows a fault-based insurance system, meaning the driver at fault in an accident is responsible for paying for the other party's "damages," including medical bills, car repairs, lost wages, and pain and suffering.

The minimum coverage requirements in Maryland are:

• $30,000 for bodily injury per person
• $60,000 for bodily injury per accident
• $15,000 for property damage per accident

Drivers must also carry uninsured motorist coverage with identical minimum requirements to protect against accidents caused by uninsured or underinsured drivers.

Additionally, personal injury protection (PIP) is required unless waived in writing. PIP covers medical expenses and lost income for the insured and their passengers, up to $2,500 per person, regardless of fault.

Maryland takes its insurance laws seriously, and driving without insurance can result in severe penalties, including fines, imprisonment, and license plate confiscation.

Maryland auto insurance rates

The state's minimum coverage requirements include bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and personal injury protection. The minimum coverage level in Maryland is $655 per year, which is 22% more expensive than the nationwide average.

Maryland residents with a poor credit history can take advantage of the state's ban on using credit history in the insurance underwriting process, which means it won't affect their auto insurance rates.

Safe drivers can benefit from discounted rates, with some companies offering savings of up to 30%. Additionally, young drivers between the ages of 16 and 25 typically pay higher rates due to their lack of experience. In Maryland, teen drivers between 16 and 19 pay an average of $4,433 per year, which is significantly higher than the national average.

When it comes to insurance companies, Liberty Mutual, GEICO, and State Farm are among the most popular choices in Maryland. Liberty Mutual offers customizable coverage, while GEICO provides highly-rated digital tools and State Farm has a strong presence of local agencies.

Maryland auto insurance companies

Maryland requires drivers to have auto insurance, and driving without it is a misdemeanor criminal offence. The average cost of car insurance in Maryland is $2,544 per year for full coverage and $906 per year for minimum coverage.

Geico

Geico is one of the cheapest car insurance companies in Maryland, with an average rate of $1,245 per year or $104 per month. It has a strong industry reputation and wide selection of coverage options and add-ons. It also has highly-rated digital tools and a long list of potential discounts. However, it has a below-average customer satisfaction score from J.D. Power and its quotes process could be more efficient.

USAA

USAA provides the lowest prices for high-quality car insurance in Maryland, but only for military members, veterans and their families. It has excellent customer satisfaction scores and strong industry standing. It also offers military-specific benefits such as discounted on-base car storage.

Erie Insurance

Erie Insurance is only available in 12 states, including Maryland. It offers some of the lowest rates for certain drivers in the state, a wide variety of discounts and a comprehensive selection of coverage options. However, its claims process has mixed reviews.

State Farm

State Farm is the largest auto insurance company in the U.S. and offers coverage in 48 states, including Maryland. It has an extensive agent network and highly-rated digital tools. It also offers significant discount opportunities for teen drivers and students. However, it does not offer gap coverage and may not be an option for drivers with a DUI conviction.

Progressive

Progressive offers some of the lowest rates for specific types of motorists, such as drivers with poor credit. It has a strong industry reputation and excellent financial strength. However, its ranking for claims satisfaction is below the industry average and its rates can be high for drivers in certain situations.

Maryland auto insurance requirements

Maryland has specific auto insurance requirements that drivers must meet to remain legal. These include maintaining a certain amount of car insurance coverage and carrying proof of this coverage while driving. The state's minimum liability insurance is listed as 30/60/15, which means $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $15,000 in property damage coverage per accident. This coverage pays for injuries, lost wages, and pain and suffering that the policyholder causes to another driver or their passengers in an accident, as well as damage to the other driver's vehicle.

In addition to liability insurance, Maryland also requires drivers to have uninsured/underinsured motorist coverage and personal injury protection (PIP). The minimum limits for uninsured/underinsured motorist coverage are the same as those for liability, while PIP coverage provides up to $2,500 per person for medical expenses and lost income for the policyholder and their passengers, regardless of who is at fault in the accident.

While these are the minimum required limits, it is recommended that drivers consider higher coverage amounts to better protect their assets and financial well-being. Additionally, lenders may require additional coverage, such as comprehensive and collision coverage, if the vehicle is leased or financed.

Maryland takes its insurance laws seriously, and driving without insurance can result in penalties such as fines, imprisonment, and license plate confiscation. Therefore, it is important for drivers in Maryland to understand and comply with the state's auto insurance requirements.

Frequently asked questions