How Much are Auto Insurance Quotes for Low Credit Scores in Maryland?

Wouldn’t this article be short if we knew the one best company that has the cheapest rates for low credit scores? It’s just not that easy, however, as there are a whole bunch of unknown elements like the amount of physical damage deductibles, whether you are male or female, and if you are a homeowner or renter, that help determine the price you have to pay. This article goes into detail about the things that influence insurance rates and educate you enough to have a jump start in finding the best auto insurance.

One of the key criteria that help determine auto insurance rates is your zip code. Areas with high crime rates or more dense population like Baltimore, Dundalk, and Aspen Hill tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from having to pay less for coverage.

The next table ranks the most costly cities in Maryland for low credit scores to buy auto insurance in.

Information shown are approximated as the specific zip code location can decrease or increase premium rates significantly.

Finding good, reasonably-priced auto insurance is not the easiest thing to accomplish, and determining which companies quote the best auto insurance rates for low credit scores takes even more shopping around. Each insurance company uses a slightly different approach for setting rates, so we’ll take a look at the overall cheapest auto insurance companies in Maryland.

Cheap Insurance Rates in Maryland

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USAA offers some of the most affordable car insurance rates in Maryland at around $948 annually. Liberty Mutual, Penn National, Erie, and State Auto would also make the list of some of the cheaper Maryland insurance companies.

As shown in the rates above, if you are a customer of State Auto and switched to Liberty Mutual, you might realize an annual savings of around $122. Drivers with Amica might save as much as $242 a year, and MetLife customers might lower prices by up to $280 a year.

It’s important to note that these estimates are averages for all types of insureds and vehicles and do not factor in a rate decrease for low credit scores. So the auto insurance company that fits your needs best may not even be in the list above. That’s why you need to get rate quotes from many companies using your own driver data and vehicle information.

The type of vehicle requiring insurance is a large consideration when looking for cheap insurance for low credit scores in Maryland. Vehicles with economical engines, excellent safety ratings, or low incidents of liability claims will cost substantially less to insure than higher performance models.

The next list showcases insurance costs for some of the most budget-friendly vehicles to buy coverage for.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and Maryland minimum liability limits. Discounts applied include multi-policy, safe-driver, homeowner, claim-free, and multi-vehicle. Estimates do not factor in vehicle location which can increase or decrease insurance rates substantially.

Looking at the data, we can presume that makes and models like the Honda CR-V, Toyota Prius, Ford Escape, and Toyota Sienna are most likely to be the cheapest vehicles to insure for bad credit.

Choosing the best insurer can be challenging considering how many choices there are in Maryland. The company information in the next section may help you decide which coverage providers you want to consider when shopping around. These ratings only include the largest companies in America, so companies that focus mainly on Maryland business are not taken into consideration for the list.

Top 10 Major Car Insurance Companies in Maryland Ranked by Value

1. Travelers
2. American Family
3. AAA Insurance
4. Safeco Insurance
5. Progressive
6. The Hartford
7. Titan Insurance
8. The General
9. 21st Century
10. Esurance

Difference between full coverage and liability only rates

Finding cheap insurance for low credit scores in Maryland is important to most people, and a great way to pay less for insurance is to only pay for liability coverage. The example below visualizes the comparison of insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premium estimates are based on no claims or driving violations, $100 deductibles, single marital status, and no discounts are taken into consideration.

On average, full coverage costs $3,113 per year more than just buying liability only. That is a big expense that brings up the question if buying full coverage is a good investment. There is no definitive formula of when to stop paying for full coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then you might consider buying liability only.

For example, let’s say your vehicle’s replacement cost is $7,500 and you have $1,000 deductibles. If your vehicle is severely damaged, you would only receive $6,500 after paying your policy deductible. If premium cost is more than $650 a year to have full coverage, then you may need to consider dropping full coverage.

There are some situations where dropping full coverage is not a good idea. If you haven’t paid off your loan, you must maintain physical damage coverage to protect the lienholder’s interest in the vehicle. Also, if you don’t have enough money to buy a different vehicle in the event your current vehicle is totaled, you should not consider dropping full coverage.

State Farm, Progressive, Allstate, or Geico: Who is cheapest?

If you are shopping around for auto insurance for bad credit in Maryland, four companies to consider are State Farm, Progressive, Allstate, and Geico. Combined they make up 48.5% of all policies written in the United States. The following table rates pricing and service ratings, plus some optional coverages that are available for policyholders.