2019 Maryland Car Insurance Report
When it comes to Maryland, big things really do come in small packages. In 2016, the Free State charged the eleventh most expensive car insurance premiums in the country. That’s despite having little road to cover (under 18,000 lane miles), a traffic-related fatality rate lower than that of many states (550 in 2017) and minimum liability insurance limits just slightly higher than the national average. Maryland drivers must carry at least $30,000 of coverage per person and $60,000 per accident for bodily injury and $15,000 for property damage. They must also have $30,000 per person and $60,000 per accident in uninsured motorist bodily injury coverage, $15,000 in uninsured motorist property damage coverage and $2,500 of personal injury protection.
So what’s boosting the cost?
In this report, WalletHub dug deeper into the cost of premiums by using data collected from five of the largest auto insurers in the state (with a cumulative market share of 70.34%). The results reveal how individual factors such as gender, age and coverage type can impact a driver’s overall rate.
Premium Differences by City – The most expensive city is 100% more expensive than the least expensive
|Rank||City||Premium Relative to Baseline||Rank||City||Premium Relative to Baseline|
|14||Ellicott City||127.6%||29||Gwynn Oak||199.1%|
Premium Differences by City Size – Large cities are up to 32% more expensive than small cities
Premium Differences by Gender - Females pay ~2% more
Premium Differences by Age – 16 year olds pay 236% times more than 56 year olds
Premium Differences by Marital Status – Single individuals pay 9% more
Premium Differences by Profession – Engineers and teachers enjoy a discount of 6% relative to other professions
Premiums by Profession
Auto Usage Impact
Premium Differences by Type of Use – Small business owners pay 11% more on car insurance
Premium Differences by Mileage – No big differences
Type of Coverage Impact
Premium Differences for Comprehensive & Collision Coverage – Adding coverage can increase your car insurance costs by 62%
Premium Differences by Liability Coverage – Deluxe coverage costs 63% more than the state’s minimum requirement
Driving Record Impact
Premium Differences Based On Driving Violations – 1 accident on the last 3 months increases costs the most, on average around 53%
Premium Difference by Credit Score – Up to 18% more for people with no credit
Regional Characteristics Correlated with Maryland Car Insurance
|Lowest||Highest||∆ Highest vs Lowest Premium Difference||Correlation Factor|
|Travel Time to Work
|Fatality Rate||Montgomery County
(3.88 fatalities per 100k population)
(25 fatalities per 100k population)
|African American Pop||Bel Air
Complaints and Market Share by the Largest Car Insurance Companies in Maryland
|Company||Market Share||Complaints Index||WalletHub User Reviews||The Overall Customer Satisfaction Rank|
|Progressive||6.34%||0.51||4.5 (23 reviews)||1|
|Chubb||0.32%||0.59||5 (3 reviews)||T - 2|
|Farmers||0.65%||0.36||4.1 (155 reviews)||T - 2|
|Nationwide||7.63%||0.51||4 (201 reviews)||4|
|Allstate||11.91%||0.77||4 (194 reviews)||5|
|Geico||23.98%||0.53||3.8 (528 reviews)||6|
|Hartford||1.03%||1.67||4.5 (13 reviews)||T- 7|
|USAA||8.63%||1.38||4.2 (180 reviews)||T- 7|
|Cincinnati Financial||0.29%||0.11||2.6 (15 reviews)||T- 7|
|State Farm||19.21%||1.38||4 (417 reviews)||10|
|Erie||7.69%||1.24||3.9 (95 reviews)||11|
|State Auto||0.41%||2.26||4 (2 reviews)||T - 12|
|AAA||0.72%||1.33||3.8 (4 reviews)||T - 12|
|Travelers||1.66%||1.23||3.4 (84 reviews)||14|
|Amica||0.48%||2.01||3.8 (51 reviews)||15|
|Metropolitan (MetLife)||0.54%||3.75||3.9 (25 reviews)||T - 16|
|Liberty Mutual||3.99%||1.41||3.7 (182 reviews)||T - 16|
|Donegal||0.47%||2.86||2.6 (3 reviews)||18|
The complaints index is the ratio between the market share of complaints divided by the market share of premiums written. The lower the index, the better.
In order to examine how auto insurance premiums vary within Maryland, we collected insurance quotes from the websites of five of the largest providers in the state. The five insurance providers were chosen based on the total number of premiums issued in 2018, according to the Maryland Insurance Administration. USAA was excluded from our analysis because its customer base is limited to military personnel and their families.
City Data Assumptions:
City Selection: We chose the 30 most populated cities, according to U.S. Census Bureau data.
City Zip Code selection: For each quote, we were required to enter a zip code on the insurer’s quoting platform. For each city we picked the zip codes with the highest population, so that on a cumulative basis those zip codes represent more than 30 percent of the total population of that city.
For all demographic and insurance details data across the report, we have used the 21061 zip code, unless specified otherwise. The average premium amount across all cities for the base case scenario is closest to the average premium obtained for this zip code; as such it was chosen as to represent average fluctuations between the different factors.
Assumptions of the Base-Case Driver and Automobile
Experienced Female Driver
|Licensed: 20 Years|
|Age: 36 Years|
|Employment Status/Profession: Unemployed|
|Marital Status and Gender: Single Female|
|Membership in Organization: None|
|Traffic Violations: None|
|Annual Mileage: 16,000|
|Daily Use Purpose: Commute to School/Work (20 Miles Each Way)|
|Days per Week: 5|
|$50,000 for Injury/Death to One Person|
|$100,000 for Injury/Death to More than One Person and $50,000 for Damage to Property|
|Collision Coverage with Uninsured Motorist of $30,000|
|Collision Coverage with Underinsured Motorist of $60,000 (UMUND)|
|$500 Collision Coverage (COLL)|
|$500 Comprehensive Coverage (COMP)|
|2013 Honda Accord LX, 4-Cyl., Sedan|
|Assume: driver-side air bag, standard performance, no anti-theft device|
In order to obtain comparable results across different scenarios, we kept the car information the same for each quote. Starting with the above base case, we altered the parameters one at a time and extracted the resulting quotes to outline the differences across gender, marital status, age, profession, annual mileage, daily use of car and credit score.
For traffic violations and Liability coverage, full details were not included in the above charts for simplicity sake. They are as follows:
Traffic Violations from the Past 36 Months:
- 1 Speeding Ticket, 1–19 Miles Over Limit (3 Months Ago)
- Reckless Driving – 1 Speeding Ticket, 20+ Miles Over Limit (3 Months Ago)
- Improper Turn/No Signal (3 Months Ago)
- DUI (12 Months Ago)
- 1 Accident, No Casualties, $1000+ Claim (12 Months Ago)
- 1 Accident, No Casualties, $1000+ Claim (3 Months Ago)
- Clean Driving History (Base Case)
- Minimum: Mandatory state minimum liability limits for Maryland: $30,000 per person and $60,000 per accident for bodily injury, $15,000 for property damage and no collision or comprehensive deductible.
- Basic: $50,000 per person and $100,000 per accident for bodily injury, $50,000 for property damage, $500 collision and $500 comprehensive deductible
- Premium: $100,000 per person and $200,000 per accident for bodily injury, $100,000 for property damage, $1500 collision and $1500 comprehensive deductible
- Deluxe: $100,000 per person and $300,000 per accident for bodily injury, $100,000 for property damage, $1500 collision and $1500 comprehensive deductible
Company Data Assumptions:
List of Insurance Providers: The ideal list of providers includes the top 20 with the highest market.
Complaints Index: The complaints index was obtained by dividing the total complaints for each individual company by the total number of complaints across all insurance companies in Maryland (complaint market share), all divided by total market share. The Overall Customer Satisfaction Rank was determined by averaging the rankings for the Complaint Index and WalletHub User Review categories.
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