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Maryland shows 46.7% increase in auto insurance expenditure in 21 years ending 2010

The Consumer Federation of America released a study in November 2013 that tracked auto insurance expenditure trends across the country from 1989 to 2010. It found that average auto insurance expenditure in the state of Maryland went up by from $646.18 to $947.70, on average, during this period. The 2010 average represents a rise of 46.7 percent over the 21 years. The corresponding countrywide averages went up from $551.95 to $791.22, a rise of 43.3 percent. Maryland is one of 38 states where auto insurance costs went up by more than the countrywide increase.

One of the main conclusions of the study was that states that had implemented stringent auto insurance regulation had been successful in keeping rates from rising too fast. The study credits the Prior Approval (PA) system, in which insurers have to file rates changes and obtain approval before implementing them in the marketplace, with helping keep rates’ rise in check. The PA system is one of the most stringent forms of insurance rate regulation. The study shows that rates went up an average 48 percent in states that employed a PA system. In contrast, rates went up an average 70.1 percent in deregulated states.

Another important finding of the study was that stringent regulation resulted in savings for consumers without affecting the profitability of the insurers. All in all, the study shows that auto insurance regulation when stringent, will lead to savings for the consumer.

Currently, Maryland has in place a File and Use (F&U) system which requires insurers to file rates changes before use. However, there is no requirement for approval whatsoever. As per the study, if Maryland were to implement stringent auto insurance which includes a PA system, consumers would reap the benefits of it without any damage being done to the profitability of the insurers - a classic example of a win-win situation.

Maryland Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Maryland, MD.

Lowest Rate:$1000
Average Rate:$1500
Highest Rate:$3200

Recent Savings From Top Providers in Maryland

Rank Customer Zipcode Amount Saved
1 21216 $366
2 20601 $359
3 20602 $357
4 20603 $355

Compare Auto Insurance Companies in Maryland

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
State Farm A++ 1922
Allstate A+ 1931
GEICO A++ 1936
Nationwide A+ 1925
Erie A+ 1925

Maryland Auto Insurance Requirements

Minimum limits of liability for auto insurance in Maryland as per MD State Laws

Bodily Injury Liability

  • $30,000 for death/injury of any one person, per accident.
  • $60,000 for all persons per accident.

Property Damage Liability

  • $15,000 per accident.

Maryland Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Maryland is the vehicle's make and model. Especially the vehicle's theft rates in Maryland

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

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Latest Auto Insurance Reviews in Maryland

State Farm

$190 a month

I have State Farm for my car insurance. I'm located in Baltimore. I've never had any issues with my driving record - no accidents or anything like that. I have a 2011 Ford Edge, which is $190 a month. The vehicle has full coverage. I chose that so I know I'm fully covered at all times. I've never had any problems with them. My agent is Scott Garvey. I've always had a pleasant experience with them. They're there to help me whenever I need anything, and in general, I'm very happy with the service. I usually don't drive too far - out to see friends or to the store. I did just take the vehicle to Virginia Beach. That's the farthest it's ever gone. I'm a female, 35 years old and single. I've never switched insurance before, only the vehicle covered by the insurance. It's always been easy to do so. On a scale of 1-5, I give my agent a 4. Aside from their late opening hour, I don't have a problem with them. They're just hard to get in touch with first thing in the morning.

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