I speak with a lot of people in the course of a week giving quotes and there’s one thing in common with most callers. Maryland rates are going up again. You would think that a state with minimum liability insurance limits that are slightly higher than the national average that our insurance rates would be equal to or lower than rates paid by policy holders in our neighboring states but NO.
In Maryland, drivers must carry at least $30,000 of coverage per person, $60,000 per accident for bodily injury and $15,000 for property damage. They must also have $30,000 per person, $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?
Well here are a few Maryland Car Insurance Facts.
WILL INSURANCE PREMIUM DECREASE BY AGE?
16 year old’s are paying on average 236% more than 56 year old’s.
WILL INSURANCE PREMIUM INCREASE BY MILEAGE?
If you drive 25,000 miles per year or more, expect to pay 7.34% more than those who keep mileage close to 6,000.
WILL INSURANCE PREMIUM INCREASE BY SPEED?
If you’re charged with reckless driving, you can expect insurance premiums to go up 40%.
WILL INSURANCE PREMIUM INCREASE BY ACCIDENTS?
Drivers who had an accident in the past 3 months can expect a 53% increase in premium rates.
WILL INSURANCE PREMIUM INCREASE BY CREDIT HISTORY?
Having no credit history will cost you up to 18% more on car insurance
While there are many other factors that affect your insurance rates, these are just some that I encounter in my day to day interactions with clients.
Here is my advice.
Shop around for your car insurance
Prices differ from company to company, so it pays to shop around.
Get at least three quotes, from different insurance companies and different types of insurance companies—that is, those that sell through their own agents; those that sell through independent agents; independent agents offer insurance from multiple carriers and can shop around to find the best rate for your insurance needs.
Maintain a good credit history
Establishing a solid credit history has many benefits, including lower insurance costs.
Seek out other discounts
There are other discounts that your insurer may offer to policyholders. For example, some companies offer discounts to those who’ve not had any accidents or moving violations during a specified period, or who have taken a defensive driving course.
Ask your insurer what discounts you might qualify for, but keep in mind that what’s important is the final cost of your policy. A company that offers few discounts may still be able to give you a lower overall premium price.