Cheapest Car Insurance In Gaithersburg, MD For April, 2024

After careful consideration, we have found that USAA offers the cheapest car insurance overall in Gaithersburg.

min read
Updated: 27 January 2024
Written by
Bob Phillips
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As a driver in Gaithersburg, you know that having reliable car insurance is essential. The city’s high auto accident and theft rates make it imperative to have proper coverage in place.

The average car insurance rates in Gaithersburg are lower than the state of Maryland’s average rates ($1,608 annually compared to $1,920 annually). So finding the right insurance policy that fits your budget and offers comprehensive protection is crucial.

We have extensively researched various car insurance companies to help you find the best coverage options at affordable rates. After careful consideration, we have found that USAA offers the cheapest car insurance overall in Gaithersburg. However, there are other strong contenders that offer competitive rates for various driver demographics.

For young drivers and seniors, Travelers provides an affordable option, while Erie is an excellent choice for minimum coverage. Allstate offers comprehensive full coverage for those who require maximum protection, and GEICO may be the best option for drivers with poor credit.

Cheapest And Best Car Insurance Companies In Gaithersburg, MD 2024

Best Cheap Car Insurance, Gaithersburg 2024

Compare The Cheapest Car Insurance Companies In Gaithersburg, MD

J.D. Power Rating Best For Overall Rating AM Best Rating Average Annual Cost Get A Quote
Allstate

832

Cheapest Full Coverage

4.7

A++

$2,592

Instant Quote
USAA

881

Cheapest Overall

4.9

A++

$1,068

Instant Quote
Travelers

860

Cheapest For Young Drivers

4.7

A++

$2,736

Instant Quote
Erie

867

Cheapest Minimum Coverage

4.6

A+

$888

Instant Quote
GEICO

834

Drivers With Bad Credit

4.8

A++

$3,521

Instant Quote
Travelers

860

Seniors

4.7

A++

$1,800

Instant Quote
Scroll to see comparisons

Our Methodology

To find the cheapest car insurance rates in Gaithersburg, we carefully looked through different car insurance review sites. We gathered information from public filings obtained through Quadrant Information Services, which gave us a complete picture of the market.

To conduct this review, we averaged the rates we found from these sources. This helped us identify the most affordable choices. But please keep in mind that insurance rates can change often and will depend on factors like your driving record, age, and where you live.

31

Quotes Analyzed

15+

Years Of Industry Experience

15

Brands Reviewed

27+

Research Hours

Cheapest Car Insurance Companies In Gaithersburg, MD


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
10/10 Customer Reviews
9/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

USAA consistently ranks as a top-performing auto insurance provider throughout the country, and Gaithersburg is no different. While USAA only caters to current and former military personnel and their families, we believe the company offers unparalleled rates and service quality compared to any other auto insurer in the industry, as recognized by J.D. Powers.

Additionally, USAA receives high praise for its exceptional claims handling process, which has earned the trust and loyalty of its customer base.

Benefits & Drawbacks

Benefits
  • USAA has high customer satisfaction ratings.
  • It offers the ability to bundle car insurance with other USAA products.
  • USAA is available to a large number of military families in the Gaithersburg/D.C. metro area.
Drawbacks
  • USAA is only available to active military, veterans, and their families.

Cheapest Overall Rates In Gaithersburg

Company Rate Per Year
USAA $1,068
GEICO $1,769
State Farm $1,896
Erie $1,930
Safeco $2,593

USAA has built a strong brand in the military market. Studies consistently show strong customer loyalty and high claims handling satisfaction scores.


Cheapest For Senior Drivers

Overall Rating
4.7

Key Statistics

10/10 Affordability
8/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

As drivers reach their 60s and 70s, their accident rates tend to increase, which can lead to higher insurance rates. Factors like poor vision and slower reflexes are often cited as reasons for this trend.

However, Travelers is committed to making insurance more affordable for senior drivers. If you have more than one Travelers policy, have taken a safe driving course, or drive fewer miles, you may be eligible for discounts.

Seniors often qualify for lower mileage discounts because they are retired and no longer have to commute long distances.

Benefits & Drawbacks

Benefits
  • Discounted rates for senior drivers
  • Discounts for taking a defensive driving course
  • A trusted and recognizable name for seniors
Drawbacks
  • Below average J.D. Power customer service ratings
  • A limited number of Travelers agents sell car insurance in Gaithersburg

Cheapest For Senior Drivers In Gaithersburg

Company Rate Per Year
Travelers $1,800
Allstate $2,303
Travelers $1,767
Erie $1,475
Nationwide $1,456

For older individuals seeking to cut down on car insurance expenses, there are a few ways to achieve savings.

Raising deductibles, paying premiums upfront, and bundling an auto policy with a homeowners insurance policy from Travelers are all worth considering.


Cheapest For Drivers With Bad Credit

Overall Rating
4.8

Key Statistics

9/10 Affordability
8/10 Customer Reviews
9/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

Similar to how age plays a role, credit score is also an important factor that influences car insurance rates. Insurers have discovered that drivers with lower credit scores are more likely to file a claim. If you’re struggling with poor credit, GEICO stands out as the most affordable insurer we came across.

In addition to their standard coverage, GEICO offers a useful optional mechanical breakdown policy that could be particularly beneficial for Gaithersburg drivers with newer cars.

It’s renewable for up to seven years or 100,000 miles, providing peace of mind as your car ages and the likelihood of breakdowns increases.

Benefits & Drawbacks

Benefits
  • Bundling discounts are available
  • Discounts are still offered to drivers with poor credit
  • Available through many Gaithersburg agents
Drawbacks
  • Below average J.D. Power customer service ratings

Cheapest For Drivers With Bad Credit

Company Rate Per Year
GEICO $3,521
USAA $3,756
Nationwide $4,372
Allstate $4,749
Progressive $5,018

Unlike other states, in Maryland, insurance companies have the authority to consider your credit score when calculating your car insurance premiums. However, having a low credit score does not give insurers the right to deny you coverage, nor can they raise your rates upon renewal.

If you’re a driver in Maryland whose credit score has improved, it’s worth reaching out to your insurer to request a rate review and potentially lower your premiums


Cheapest Minimum Coverage

Overall Rating
4.6

Key Statistics

10/10 Affordability
9/10 Customer Reviews
8/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

When it comes to offering the most affordable minimum coverage rates in Gaithersburg, Erie takes the cake. As per the regulations set by the state of Maryland, minimum coverage rates are:

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

Every car insurance provider in Gaithersburg is required to offer $2,500 in personal injury protection (PIP) coverage. However, drivers do have the option to waive this coverage.

What sets Erie apart from other car insurance providers is the wide array of coverage types that it offers. These include gap insurance, new car replacement coverage, rideshare insurance, and much more.

Additionally, Erie enables customers to lock in their rates until they decide to make any policy changes, such as adding a driver or vehicle or moving to a new location.

Benefits & Drawbacks

Benefits
  • High ranking in J.D. Power customer satisfaction studies
  • Option to lock in your car insurance rate
  • Many coverage options
Drawbacks
  • Not as many discounts as other insurers
  • Only available in 12 states, which can be a problem for Gaithersburg insureds who later move

Cheapest Minimum Coverage In Gaithersburg

Company Rate Per Year
Erie $888
State Farm $912
Travelers $1,001
Nationwide $1,466
Allstate $2,028

It’s advisable to opt for minimum coverage only if the value of your car is lower than the cost of having full coverage. However, choosing minimum coverage can leave you with a greater financial risk than opting for higher limits.


Cheapest Full Coverage

Overall Rating
4.7

Key Statistics

10/10 Affordability
8/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Allstate is a robust contender in most of the categories we have ranked, with a standout performance in offering the most affordable full coverage.

Apart from the usual auto coverage options, Allstate also provides Gaithersburg drivers with a range of optional coverages they can add to their policies, including:

  • Safe Driving Bonus: If you remain accident-free every six months, you can earn money back.
  • Accident Forgiveness: Even if the accident was your fault, your rates won’t increase due to this coverage.
  • New Car Replacement: In the event of a total loss within the first two model years, you can get a check for a new car.
  • Deductible Rewards: You can earn $100 off your collision deductible for each year you remain violation-free, with a maximum of $500 off.
  • Gap Insurance: This coverage pays out when the amount you owe on your car loan or lease is higher than the vehicle’s value, in case of a total loss.
  • Rideshare Insurance: If you work as a driver for rideshare companies like Uber or Lyft, this coverage provides additional protection.

Benefits & Drawbacks

Benefits
  • Top financial strength ratings
  • Abundant coverage options
  • Several claims offices throughout Gaithersburg
Drawbacks
  • Below-average J.D. Power customer satisfaction rating in the Mid-Atlantic region
  • Only offered through Allstate agents

Cheapest Full Coverage In Gaithersburg

Company Rate Per Year
Allstate $2,592
State Farm $1,896
Nationwide $2,376
Progressive $2,316
GEICO $1,561

When it comes to car insurance in Gaithersburg, full coverage includes the minimum required coverages in Maryland, as well as comprehensive and collision coverage.

While it may provide the most financial protection for drivers, it’s important to consider whether the cost of full coverage is worth it for your particular vehicle. In some cases, the cost of minimum coverage may be sufficient if it exceeds the value of your car.


Cheapest For Young Drivers

Overall Rating
4.7

Key Statistics

10/10 Affordability
8/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Travelers offers affordable car insurance rates for teen drivers in Gaithersburg. Young drivers typically pay the highest rates for car insurance, but Travelers helps make it more affordable.

As one of the most well-known names in the auto insurance industry, Travelers is sold by independent agents throughout the city. While teen drivers may not be eligible for all of the discounts offered by insurers, Travelers offers numerous discounts specifically for younger drivers. These include:

  • Safe driving
  • Having no gaps in coverage
  • Owning or leasing a hybrid car
  • Insuring vehicles less than three years old
  • Paying electronically, upfront, or on time
  • New customers who get quotes before their current policies expire
  • Drivers in high school or college who maintain a “B” average or better
  • Students who are away at school
  • Completing a driver training course

Benefits & Drawbacks

Benefits
  • Offers the lowest rates for young drivers
  • Provides a variety of discounts for teen drivers
  • One of the largest insurance providers nationwide
Drawbacks
  • Below average customer service ratings in J.D. Power studies
  • Does not offer coverage for rideshare services

Cheapest For Young Drivers In Gaithersburg

Company Rate Per Year
Travelers $2,520
State Farm $3,215
Progressive $3,240
Nationwide $4,656
Erie $2,220

The Travelers’ IntelliDrive app monitors your speed, phone usage, time of day, and braking and acceleration habits for 90 days. If you demonstrate safe driving practices, you could earn up to a 30% discount when it’s time to renew your policy.

IntelliDrive promotes responsible driving, rewards good behavior, and can help you save money.

Average Cost Of Car Insurance In Gaithersburg, MD

Average Cost Of Car Insurance In Gaithersburg – By Age

Age Group Average Annual  Rate
Teenagers $3,769
20s $2,184
30s $1,308
40s $1,344
50s $1.212
60s $1,308
70s $1,380

Average Cost Of Car Insurance In Gaithersburg – By Gender

Gender Average Annual Rate
Male $1,617
Female $1,575

Average Cost Of Car Insurance In Gaithersburg – By Marital Status

Marital Status Average Annual Rate
Single $1,417
Married $1,244

Average Cost Of Car Insurance In Gaithersburg – By Accident And Violation History

Violation Average Annual Premium
DWI/DUI $5,598
Reckless Driving $5,219
At-Fault Accident (damage <$1,000) $3,756
At-Fault Accident (damage >$2,000) $4,479
Speeding (16-20 MPH > limit) $3,667

Average Cost Of Car Insurance In Gaithersburg– By Credit Tier

Credit Tier Average Annual Rate
Excellent $1,444
Good $1,519
Fair $1,713
Poor $2,255

Average Cost Of Car Insurance In Gaithersburg – By ZIP code

ZIP Code Average Annual Rate
20877 $1,740
20878 $1,464
20879 $1,620
20882 $1,824
20886 $1,656

Minimum Car Insurance Requirements In Maryland

As you embark on your search for car insurance, it’s crucial to bear in mind the mandatory minimum coverage in Maryland:

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

While this may be the minimum coverage required by Maryland, it’s important to note that you may want to consider carrying higher limits of liability and adding collision and comprehensive insurance to your policy.

The amount of coverage you need and the types of insurance you choose to add depend on various factors such as the value of your vehicle and how frequently you’re on the road.

How To Buy Car Insurance In Gaithersburg

If you’re in the process of purchasing car insurance in Gaithersburg, there are several steps you can take to save both time and money:

1.   Gather your driver and vehicle information: For accurate quotes, insurance companies require driver and vehicle information such as names, dates of birth, driver’s license numbers, vehicle identification numbers (VINs), current mileage, current insurance information, and registered owner name.

2.  Decide if you’ll buy online or through an agent: Decide whether you prefer to purchase car insurance online or through an agent based on personal preference and confidence in selecting appropriate coverage levels.

3.   Get quotes from at least three companies: Request quotes from a minimum of three companies to ensure an apples-to-apples comparison. Verify that the quotes reflect similar coverage amounts and deductibles.

4. Look for discounts: Explore available discounts that can help reduce the cost of car insurance in Gaithersburg.

5. Cancel your old policy: Contact your previous insurer to cancel your old policy once your new coverage is in force to avoid paying for duplicate coverage. Note that your new insurer cannot cancel the old policy for you.

Factors That Impact The Cost Of Your Car Insurance Policy In Gaithersburg

There are three significant factors that play a role in determining the cost of car insurance in Gaithersburg:

Commuters and accidents: Gaithersburg residents who commute daily on I-95 to Washington, D.C., face congested traffic and a high number of accidents, which can increase insurance rates.

Crime statistics: Certain areas of Gaithersburg experience high crime rates, including vandalism and theft, which can lead to higher insurance rates for those living and working in these areas.

Uninsured motorists: Almost a third of Gaithersburg’s drivers are uninsured, which can increase the cost of car insurance for responsible drivers who choose to carry comprehensive and collision coverage due to the higher limits and protection offered.

In addition to these factors, insurance rates may also be affected by the type of vehicle driven and the driver’s record.

Maryland Car Insurance Laws To Know

It is important for vehicle owners and drivers in Maryland to carry proof of insurance in their cars, as required by state law. If stopped for a traffic violation or involved in an accident, failure to provide proof of insurance may result in a traffic citation issued by law enforcement officers.

In the event that the Maryland Motor Vehicle Administration (MVA) requests proof of insurance, a Maryland Insurance Certification (FR-19) must be provided. It is available for free from your insurance company.

It is also worth noting that knowingly driving, or allowing someone else to drive, an uninsured car in Maryland can result in criminal charges. For first-time offenders, fines can reach up to $1,000, and imprisonment can last up to one year.

Second or subsequent offenders face even steeper penalties, with fines of up to $1,000 and imprisonment for up to two years, as outlined by the Maryland Code of Transportation in § 17-107 (2022).

Information About Gaithersburg

Gaithersburg, a city located in Montgomery County, Maryland, offers a unique blend of small-town charm and big-city amenities. With a population of around 70,000, Gaithersburg is a bustling city with plenty of social, cultural, and economic activity.

If you’re looking for things to do in Gaithersburg, there’s no shortage of options. The city is home to a wide range of attractions, from popular tourist spots like the Rio Washingtonian Center and the Montgomery County Agricultural Fair, to hidden gems like the Gaithersburg Community Museum and the historic Kentlands Mansion.

Whether you’re a history buff, a nature lover, or a foodie, there’s something for everyone in Gaithersburg.

Car Insurance Discounts In Gaithersburg

If you want to lower the cost of your car insurance in Gaithersburg, shopping for discounts is a necessary step. Here are some of the most common discounts you might be eligible for:

  • Installing vehicle safety features
  • Customer loyalty
  • Being a “safe driver” with a good driving history
  • Being a student with at least a “B” average
  • Being in the military
  • Being age 55+ and retired
  • Being claims-free for a specified period of years
  • Driving fewer than average miles
  • Having a short commute to work

FAQs

Why is Gaithersburg car insurance so expensive?

To some extent, the cost of car insurance in Gaithersburg is influenced by various factors, including the city’s high accident rate, a large percentage of uninsured motorists, and a high auto-theft rate.

What is the cheapest car insurance in Gaithersburg?

USAA offers the most affordable option for minimum liability coverage in Gaithersburg, with an annual cost of $1,068.

How much does car insurance cost in Gaithersburg per month?

To insure a vehicle in Gaithersburg, you can expect to pay an average of $1,608 per year.

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