If you’re one of Maryland’s 4.5 million drivers or have plans of moving to the state, you will need insurance to drive legally. There are dozens of large and small auto insurance providers in Maryland that offer a variety of plans, specialized insurance options, and auto insurance perks.
If you’re not sure what kind of policy you need or what specializations certain providers offer, look no further. Below we’ll break down the best providers in Maryland based on average rates, additional coverage options, savings, and more.
Summary of the Best Auto Insurance in Maryland
- 1.
Best Auto Insurance in Maryland Overall: Allstate
- 2.
Best Auto Insurance for Active Military and Veterans in Maryland: USAA
- 3.
Best Auto Insurance Add-ons in Maryland: Liberty Mutual
- 4.
Best Affordable Auto Insurance in Maryland: State Farm
Comparison of the Best Auto Insurance in Maryland
| Insurance company | Average annual rate | Bundling discount | Senior discount | Good student discount | Safe driver discount | Low mileage discount | J.D. Power auto claims satisfaction study (out of 1,000)1 | Review |
|---|---|---|---|---|---|---|---|---|
| Allstate | $1,673 | Yes | No | Yes | Yes | Yes | 889 | Allstate review |
| USAA | $1,151 | Yes | No | Yes | Yes | Yes | 890 | USAA review |
| Liberty Mutual | $1,637 | Yes | No | Yes | Yes | No | 870 | Liberty Mutual review |
| State Farm | $1,419 | Yes | No | Yes | Yes | Yes | 882 | State Farm review |
Detailed List of the Best Auto Insurance in Maryland
1. Best Auto Insurance in Maryland Overall - Allstate
855-909-2371
What We Like Most:
- Three ways to earn a student discount
- Pay-per-mile option for drivers with low mileage
- No waiting period to purchase accident forgiveness
Allstate is one of the oldest, most financially reputable, and most popular providers (the fourth-largest) in the country.2 It has one of the highest home bundling discounts among any provider (25 percent), which can be a huge benefit if you’re one of Maryland’s 67 percent residents who are homeowners.3 Additionally, Allstate has the second-highest J.D. Power claims satisfaction score on our list and plenty of unique coverage options for your ancillary needs.
Who It's Best For
Homeowners
Teens and their parents
Safe drivers
People with new cars
Who It's Not Best For
Military members
Excellent Savings for Homeowners
If you’re a homeowner, you can benefit from the highest home bundling discount on our list (up to 25 percent). Allstate also offers bundling discounts for:
- Home and auto insurance
- Renters and auto insurance
- Renters and motorcycle insurance
- Life and auto insurance
DID YOU KNOW?
Maryland has the highest percentage (72 percent) of housing-unit owners (condos, townhomes, apartments, etc.) in the U.S.
Here are a few other ways you can save with Allstate:
- New-car discount: If you’re the first owner of a new vehicle and your car is either the current-year model or the last-year model, you could qualify for this discount.
- Smart student discount: If you’re a full-time student (or parent of a student), you could earn savings by fulfilling the following requisites:
- Maintains a B-average or a GPA of 2.7 or above
- Stores your vehicle 100 miles away from where you attend school
- Completes the teenSMART driver education program
- Safe driver discount: You need to complete a defensive driving course and be accident-free for six months to earn this discount.
- Vehicle equipment discount: You can earn this discount by integrating an anti-theft device or other safety features (like adaptive headlights or anti-lock brakes) to your vehicle.
- FullPay discount: You can save on your premium if you pay your policy in full or have made all your payments on time for the past year.
Great Coverage Add-ons
In addition to offering all the coverage you need to meet Maryland’s minimum state requirements, Allstate coverage add-ons allow you to extend your limits and benefits. Here’s the full list of optional coverage you can integrate into your plan:
- Mexico coverage: Visiting Mexico soon? Allstate works with insurance companies in Mexico to help cover medical bills and car repairs if you’re involved in a car accident during your stay.
- Roadside assistance: You can add 24/7 roadside assistance to your plan for tows, jump starts, flat tires, lockouts, and other emergencies. Allstate roadside memberships start at $8 per month or $89 per year.
- Uninsured motorists coverage/underinsured motorists coverage: If you get into an accident with someone who doesn’t have enough insurance (and they’re at fault), you won’t pay out of pocket. Maryland has the 16th-highest rate of uninsured drivers in the country (14 percent), so we definitely recommend integrating this add-on if you can afford it.4
- Rental reimbursem*nt: If your car is being repaired under a covered insurance claim, rental reimbursem*nt will help you pay for a rental or public transport.
- Windshield and glass: Your Allstate policy comes with Auto Glass Claim Express, which gives you access to over 7,200 vetted repair shops to repair your windshield and car glass.
- Personal umbrella policy (PUP): An umbrella policy provides you with additional coverage beyond your bodily injury, personal injury protection (PIP), or property damage liability limits.
Plans for Low-Mileage Drivers
On average, Marylanders drive about 11,000 miles per year, slightly higher than the national average of 9,700.5 If you can drive less than 10,000 miles per year, however, there’s a good chance you can pay less for auto insurance with Allstate’s Milewise program.
Milewise is a pay-per-mile program that charges you based on how many miles you drive per month. Here’s an example of what your rate could look like with Milewise:
| Daily flat rate | Per-mile rate | Number of miles per day | Total daily cost |
|---|---|---|---|
| $1.50 | $0.06 | 25 | $3 |
If you drive 25 miles a day on average, you’re looking at a rate of about $90 a month (or $1,080 a year). This is much lower than both the average cost in Maryland ($1,201) and for Allstate’s ($1,673).
That being said, your daily flat rate and per-mile rate will vary based on your location, driving history, and personal background, so be sure to speak with an agent to get a more accurate estimation. For example, someone with good credit and a clean driving record will have better luck finding cheap car insurance than someone with bad credit and a bad record. Your ZIP code may also play a factor, as cities in the state have higher rates than suburban or rural Maryland.
Compare car insurance quotes from different providers to find out the cheapest car insurance company for you.
2. Best Auto Insurance for Active Military and Veterans in Maryland - USAA
855-908-2751
What We Like Most:
- Cheapest rates for teens on a family policy or on their own
- Special discount for teens transitioning off their parents’ policy
- Strong customer service and claims process
USAA is our top pick for active military members, veterans, and their families in Maryland. It has the highest J.D. Power claims satisfaction score, the lowest rates among any large provider, and excellent services unique to military members (we’ll take a closer look at those services below). If you’re one of the 425,000 servicemembers, veterans, or military families in Maryland, you can sign up for USAA’s exclusive membership today.6
Who It's Best For
Safe drivers
Military members preparing for deployment
Military members, veterans, and their families
Rideshare drivers
Who It's Not Best For
Non-USAA members
People with electric or hybrid cars
Coverage Designed for Military Members
If you’re deployed overseas or in a different state, you can keep your vehicle in Maryland and save with a USAA storage discount. Here are the three main saving opportunities USAA offers for deployed military members.
| Discount | Saving percentage maximum | Requirement |
|---|---|---|
| Storage discount | 60% | Must keep your vehicle in storage while you’re deployed |
| Comprehensive garage discount | 15% | Must have comprehensive coverage and keep your vehicle stored on a military base |
| Low-mileage discount | Varies based on how much you drive | Must maintain a low monthly mileage rate (good for members coming in and out of Maryland between deployments) |
You can also extend your USAA policy with you on deployment if you plan on driving overseas. USAA can cover you in the following overseas regions/countries:
- Azores
- Belgium
- Cuba
- France
- Germany
- Greece
- Guam
- Italy
- Netherlands
- Portugal
- Puerto Rico
- South Korea
- Spain
- U.S. Virgin Islands
- United Kingdom
FUN FACT:
Maryland has nearly 30,000 active duty military members, which makes up almost 3 percent of all U.S.-based personnel.7
Excellent Third-Party Ratings
Third-party rating systems are some of the only reliable methods to evaluate the creditworthiness, financial stability, and customer service quality of insurance providers. USAA is consistently one of the highest-ranked, reviewed, and rated auto insurance companies.
- AM Best rating: AM Best, which rates the financial strength and creditworthiness of insurance companies, gives USAA an A++ (Superior) rating.8 An A++ rating is the highest score AM Best gives to insurance providers.
- J.D. Power U.S. Auto Insurance Study: J.D. Power notes USAA’s customer satisfaction ratings in every region it studies. It gave USAA an 890 out of 1,000 for customer claims satisfaction, which outranks every insurance company on our list, making it a top-10 provider in the U.S.
- Standard and Poor’s: Standard & Poor’s (S&P) assigns letter grades to companies based on their degree of investment risk. S&P gives USAA a rating of AA+, the second-highest rating it provides. This is a good indication that USAA will repay its debts with little risk of default.
Rideshare Insurance
Not all insurance providers offer rideshare insurance, but you’ll need the additional coverage if you’re driving for a rideshare company like Uber or Lyft. Rideshare companies provide you some protection through Transportation Network Company (TNC) insurance, but there are situations when you might not be insured (like when you’re waiting for a rideshare request). Rideshare insurance provides you with the added layer of protection you need in that gap in coverage.
3. Best Auto Insurance Add-ons in Maryland - Liberty Mutual
855-831-8320
What We Like Most:
- Save up to 30 percent with driver monitoring program
- Cheap average rates
- Over 2,000 local agents throughout the U.S.
Liberty Mutual is the sixth-largest writer of property and casualty insurance, offering customers a long list of discounts, customizable plans, and unique add-ons, like teacher and Mexico insurance. Additionally, it offers excellent commercial and fleet auto insurance for business owners in Maryland.
Who It's Best For
Teachers
People who need SR-22s
People who want gap insurance
People who want to manage insurance from their phones
Who It's Not Best For
People looking for the cheapest rates
Several Add-Ons
Liberty Mutual has 12 optional coverages that you could add to your plan. Although you don’t need additional coverage to drive legally in Maryland aside from the state’s car insurance requirements, we recommend getting full coverage car insurance with the highest limits you can afford and as many add-ons as you need. Here’s the full list; it includes above and beyond the state minimum:
| Add-on Type | Description |
|---|---|
| Collision coverage | Collision coverage helps pay for damages to your vehicle when it collides with objects or another vehicle. |
| Comprehensive coverage | Comprehensive insurance covers damages other than collisions (vandalism, natural disasters, animals, theft, etc.). |
| Deductible fund | You can pay higher premiums to lower your deductibles by $100 a year (must have collision coverage to qualify). |
| Lifetime repair guarantee | This guarantee will provide you with assistance in finding a direct repair facility after an accident. |
| New-car replacement insurance | You’ll get money for a brand-new car if it’s totaled in the first year. |
| Better car replacement | If you total your vehicle, Liberty Mutual will give you money for a model that’s one year newer. |
| Rental car reimbursem*nt | Liberty Mutual will arrange a rental for you if your car is out of commission due to a covered accident for as long as it takes to fix your vehicle. |
| 24-hour roadside assistance | If you find yourself in need of emergency/roadside assistance, Liberty Mutual will send a service member to get you moving again. |
| Gap insurance | Liberty Mutual will pay whatever amount remains on your loan if you lease a vehicle. |
| Original parts replacement | This coverage allows you to replace damaged parts with new parts that meet the highest quality standards. |
| Teacher | Liberty Mutual provides protection for your car and stolen/damaged teaching material (more on this below). |
| Mexico coverage | You can choose your policy details for all vehicle types when you travel to Mexico. |
Teachers’ Auto Insurance
Liberty Mutual is one of the only providers to offer customized car insurance for teachers. If you’re one of the 60,000 teachers in Maryland, you can get savings and protection that include:
- Vandalism loss coverage: If someone vandalizes your car on school property or during school events, you won’t have to pay a deductible for repairs.
- Personal property coverage: You get up to $2,500 in coverage per occurrence for materials or school-owned property that is stolen or damaged.
- Collision coverage: If you’re driving to school or a school-related event and you get into a collision, you won’t have to pay a deductible.
- Teacher discounts: Teachers get exclusive discounts with Liberty Mutual. Speak to your local agent to see what savings are available to you.
Best for Fleets
If you’re one of the 600,000 small business owners in Maryland, you probably need commercial auto insurance for your business and/or fleet.9 According to TRIP, a national transportation research nonprofit, Maryland’s highway system is among the worst in the U.S.10 Liberty Mutual’s fleet and commercial auto insurance program can help with some of the problems you might have with highway traffic, finding skilled drivers, rising repair costs, and more.
Here’s what the plan includes:
- Expert guidance in developing a fleet safety program and finding qualified drivers
- A telematics integration to identify poor or unsafe driving habits
- Help to find fleet tracking systems that provide the best routes with real-time traffic and weather updates
- Advanced analytics to review legal bills
- Digital appraisals and access to Liberty Mutual repair shops to get you back on the road as soon as possible
4. Best Affordable Auto Insurance in Maryland - State Farm
855-942-2891
What We Like Most:
- Multiple discounts for safe driving, including one specifically for young drivers
- Local agents
- Discounts for multiple cars
State Farm is the third most affordable large provider in the country and the second-cheapest provider on our list. Although State Farm’s national average rate is about $1,400, you can expect your rates to be lower in Maryland, which has a state average of $1,201.11 State Farm also has a long list of discounts and perks for safe drivers to help bring your costs down.
Who It's Best For
Safe drivers
People who want to bundle insurance
Young drivers
People who need rideshare insurance
Who It's Not Best For
People who want gap insurance
Military families
Excellent Discount Opportunities
State Farm has one of the most extensive lists of discounts in the industry, with sizable saving opportunities for safe drivers, teen drivers, and more.
- Drive Safe & Save: Drive Safe & Save is a tracking program that records your driving habits, scores you on how safely (or unsafely) you’re driving, and calculates either a premium deduction or an increase. You get a discount just for signing up, and you can earn up to 30 percent off based on your performance.
- Good driver discount: New to State Farm? You can receive a discount if you don’t have any at-fault accidents or moving violations within your first three years as a customer.
- Steer Clear driver program: Steer Clear is a safety program for drivers under the age of 25. Here’s what you need to be eligible for the 15 percent discount:
- A valid driver’s license
- No at-fault accidents or moving violations in the past three years
- A certification of program completion from Steer Clear
- Defensive driving course discount: State Farm has a network of safety courses in Maryland. Complete an approved course, and you can earn a discount on your premium.
- Vehicle safety discount: You can qualify for this discount by equipping your vehicle with modern safety features such as electronic stability controls, forward collision warnings, and adaptive headlights.
- Multiple vehicle discount: Insure more than one vehicle with State Farm, and you could qualify for this discount.
- Bundling discount: If you get homeowners, renters, condo, or life insurance, you could earn a bundling discount.
Seamless Mobile Experience
State Farm has a sleek, intuitive, and comprehensive mobile app that has everything you need to manage and review your plan. It’s one of our favorite apps for user experience because of how easy it is to navigate the menu, file claims, upload photos, and more. The app has a 4.7 out of five-star rating for Android and 4.8 rating on iOS, which are some of the highest mobile app ratings for a top provider.
Through the app, you can:
- Pay your bills.
- Enable personalized reminders and notifications for payments, claims, and other insurance needs.
- Get roadside assistance for flat tires, dead batteries, towing, and more.
- File and track the status of your claims.
- View your policy and coverage details.
- Search for repair shops.
- View details of investment products.
- Search for answers to frequently asked questions.
- Contact your agent.
Coverage for High-Risk Drivers
If you’re a high-risk driver in Maryland, it might be difficult to find a provider willing to insure you or offer affordable coverage. Insurance providers are less likely to offer you coverage if you have a history of traffic violations, at-fault accidents, lapses in coverage, and multiple insurance claims.
Fortunately, State Farm is a top provider for high-risk drivers. Not only is State Farm willing to insure high-risk drivers, but it also charges high-risk drivers about 15 to 20 percent less than the competition. That’s great news for people with bad driving records.
Methodology
- Proprietary data: Over the past 20 years, AutoInsurance.com has collected millions of data points on car insurance companies that have had the most success insuring drivers across each state, including Maryland. We’ve analyzed that data to narrow down the best service providers in Maryland based on insurance rates, discounts, driving trends, state laws, and more.
- Public studies: Third-party ratings and studies help customers and industry leaders keep track of the credit ratings, customer service scores, and financial strength of insurance companies. We look at third-party studies from recognized organizations like the Better Business Bureau, J.D. Power, Moody’s, AM Best, the National Association of Insurance Commissioners, and S&P Global, among others, to find the most accurate ratings on insurance providers.
- State and federal studies: Car insurance policies, laws, rates, discounts, and benefits will vary from state to state, which is why it’s so important to look at federal and state studies for the most up-to-date information. At AutoInsurance.com, we look at only the most credible organization for our facts, figures, and research, including Maryland-specific data from the NHTSA, NAIC, local DMVs, and other government sources.
- Expert institutional guidance: Last but not least, AutoInsurance.com is backed by insurance industry expert Paul Ford. Paul is the president of insurance services at Centerfield, AutoInsurance.com’s parent company. Paul’s decades of insurance-related experience informs our guides and research, providing us with the expert guidance we need to improve our recommendations, information, and assessments of car insurance companies.
Frequently Asked Questions
Where are the USAA offices in Maryland?
USAA has a financial office in Annapolis, Maryland.
How long can you go without car insurance in Maryland?
You cannot go any period of time without car insurance in Maryland. If you’re caught driving without insurance, you will be charged $150 for the first 30 days lapsed and $7 a day thereafter, according to the Maryland Department of Transportation Motor Vehicle Administration (MVA).
How does fault work in Maryland?
Maryland is an at-fault state, which means that the at-fault driver is responsible for the cost of injuries and property damages of both drivers.
What happens if you get into a car accident without insurance in Maryland?
At-fault laws, also known as tort laws, still apply if you get into an accident — even if you don’t have insurance. That means it’s still possible for you to file a claim through the other driver’s provider. However, if you’re at fault in the accident, you could face penalties, jail time, or a lawsuit.
Are there a lot of uninsured drivers in Maryland?
According to the Insurance Research Council, 14 percent of drivers in Maryland do not have insurance. That’s the 16th-highest uninsured motorist rate in the country.
