Archive for the ‘Maryland Car Insurance Rates’ Category

Maryland Auto Insurance Laws And Regulations – Requirements And Rate

Maryland mandatory car insurance laws, rules, and regulations are set by the Motor Vehicle Administration (MVA). Auto insurance is required in Maryland since it is a mandatory vehicle insurance state. The state legislation stipulates that registered vehicles must carry the required published liability limits from an insurer licensed to do business in the state. Each mandatory state has minimum requirements and Maryland’s is $30,000 bodily injury per person, $60,000 for more than one person, and an additional $15,000 for property damage (30/60/15).

Higher limits are offered by all companies, although rates will vary. These limits extend to family members and persons given permission to operate your vehicle. Changes can typically be made on the anniversary date, or during the policy period if a claim is not pending. Maryland is considered an “at-fault” state for vehicle accidents, and as previously mentioned, is also a mandatory vehicle insurance state. Therefore, drivers are permitted to sue other drivers for compensation after an accident. Additional damages may also be recoverable. Typically, you can file a claim with your carrier, file a claim with the other driver’s carrier, or sue the other party directly to recover damages.

Transportation network companies that have between 26 and 300 operators have higher limits. These requirements are $50,000 bodily injury per person, $100,000 for more than one person, and an additional $25,000 for property damage. Commercial coverage is available from many carriers with much higher available limits. New residents must notify their current carrier to convert to a state-approved policy. Vehicle insurance is validated when you renew the registration. Coverage must be in effect before a vehicle is registered and insurance plates must be returned before a policy is canceled.

PIP Is Required

Uninsured motorists coverage and personal injury protection (known as PIP) are also required. PIP provides up to $2,500 of medical and disability costs arising from an accident. Both family and non-family occupants of the vehicle are covered (Full PIP). The $2,500 may be utilized for reasonable and necessary medical expenses that occur within 36 months of the accident and up to 85% of incurred and provable lost wages. Compensation is also available if the injured party was not employed. Surgery, recovery, and rehabilitation expenses are typically covered.

Persons that do not sign the PIP waiver and also are not eligible to reject coverage, receive the benefits described in the previous paragraph. Rejection of PIP is also an option. Coverage can only be waived for yourself, listed drivers on the auto policy, and family household members that are 16 years of age (or older). PIP can not be waived or other persons in your vehicle or other pedestrians you injure. Car repairs and damage to other person’s property are not items covered along with reimbursement for taxis and buses. Note: PIP is also required in 16 other states.

There is also a “limited” alternative that excludes benefits to your family if they have reached age 16. However, the cost-savings is not significant. It should only be considered if you have private or group comprehensive healthcare benefits. Sustained injuries are covered regardless who was at fault. PIP payments are often paid quicker than reimbursements from a private or group health insurance plan. When the limited option is selected, PIP benefits may not be able to be collected under any motor vehicle liability policy.

PIP Rejection

Rejection of PIP is permitted if coverage does not exceed a specific limit, the carrier terminated the policy before the policy end date, and you were covered by a carrier other than the Maryland Automobile Insurance Fund (prior to applying). The approximate 6-month PIP coverage cost (35 year-old male) is $40 for $2,500 of benefits, $58 for $5,000 of benefits, $73 for $7,500 of benefits, and $85 for $10,000 of benefits. When opting out of PIP, a waiver must be signed (Insurance code section 19-505a).

We help you understand different regulations in the state, and the impact any changes may have on your driving or the cost of your auto insurance. It’s important to “stay legal,” and take advantage of any new laws or legislation that could help you save money. If you finance or lease a vehicle, requirements are often different. For example, leased vehicles typically require higher liability limits and more restrictive collision and comprehensive deductible options than a financed vehicle.

We also help you provide an FR-19 (Insurance Certification) which is required when you register or renew a vehicle. It’s important not to lose your certificate because only the original is considered valid. A copy will not be accepted if you are required to show proof. The FR-19 is valid for 30 days and must be provided by a licensed carrier and/or an authorized agent. The form is only used in several states (also Delaware), and serves a different purpose than an SR-22 Bond form. The MVA is located at 6601 Ritchie Highway Glen Burnie, MD. 21062.

Insurance Requirements

Your insurance must be certified and a written statement is required to verify that you will not drive without the proper coverage. This certification is the FR-19 and can be obtained directly by your insurer or a qualified broker. The form does not cost the driver any money and the original should be faxed or filed electronically with the MVA. A copy of the form is not accepted. It’s always a good idea to keep a copy at home or at your office. Also, updating the form every few years should be considered. A USAA FR-19 is very popular.

Driving without the required insurance is not only illegal but it could be very time-consuming and expensive. About 12% of all Maryland drivers do not have coverage on their vehicle. For example, if your insurance lapses for three months, your fine will be $570. Even a one-month lapse will cost $150, with an additional $7 charge for each additional day. The maximum per vehicle is capped at $2,500. There will be an additional cost for reinstating your car registration and to obtain new license plates. Although we can assist, it may be very time-consuming for you.

If you drive while the registration is suspended, the car may be impounded, and additional fines and penalties can be imposed. The Central Collections Unit will respond if prior notification requests are ignored. A 17% collection fee can be added to the outstanding fines. If a vehicle has been sold, your auto carrier can provide a letter that gives the date of loss and the date the vehicle was returned to the owner. Note: Geico, Allstate, USAA, and State Farm insure the most vehicles in the state.

If you received a fine for a driving violation, and you can not immediately pay the entire amount, a suitable payment plan can be arranged. The CCU (Central Collection Unit) has many office locations that can begin the payoff process with a small initial payment. A credit card or cash can be used, but not a personal check. However, if you neglect to make the required payments, the vehicle will not be able to be driven, and no other vehicles will be allowed to be registered.

Penalties

Additional penalties can include paying a $25 restoration fee, not being able to renew a suspended registration, having your license plates confiscated, and paying a $1,000 penalty and risking jail time if false proof of coverage is provided. If insurance lapse notifications are ignored, the Central Collections Unit (CCU) can collect an additional 17% of all outstanding fines. If your license plate or vehicle is stolen, a copy of the police report should be submitted so verification of the plates and date stolen can be verified. Once the plates have been found or recovered, MDOT should be contacted.

Vehicles that are repossessed, impounded, sold, totaled, junked, or sent out of the US, may require a letter from the insurance company, letter from the lien holder, bill of sale, or from the facility involved in the transaction. Information can be emailed, faxed, or sent via regular US mail.

Hopefully, you won’t have any outstanding unpaid tickets, because they will also have to be paid in full. The three convenient payment options are: 1. Mail your payment (money order or check) to MVA (Insurance Compliance), PO Box 2278, Glen Burnie, MD. 21060. 2. Pay in person with money order, cash, check, or credit card. 3. Pay by phone through an interactive system that is available 24/7. Uninsured motorists fees can be paid with a credit card.

The moral of the story? Don’t go anywhere in your vehicle unless it is insured. Once you are on the road again, you can compare auto insurance rates in Maryland on our website. Checking prices every few years ensures you are not overpaying for your coverage. Bundling auto and home policies provides a discount and possible substantial savings.

New Drivers

If you’re a potential new driver…Congratulations! Your first step is to obtain a Maryland learner’s permit. You must be at least 15 3/4 and pass a vision exam and a written test by correctly answering at least 17 of the 20 questions. There are also several forms of identification required. Proof of both residency and identity are required. You should also take the driving test before your learner’s permit ends. If you wait too long, you’ll have to start the process over again which will be costly and time-consuming.

Maryland Car Insurance Rates Are Affordable

Once you are licensed, of course, you must purchase your auto insurance with at least the minimum liability limits earlier discussed. You can also be added to an existing policy if the car you will be driving is owned by someone else (assuming a parent). Insurance ID cards should always be kept with you while you are driving. Keeping copies in your wallet/purse and glove compartment will satisfy just about all situations. NOTE: The National Driver Registry will be contacted, to ensure a current license is not suspended or revoked.

If you lose your ID card or your driver’s license, they should be promptly replaced. You can go to a local license and title bureau to have a duplicate made. You also can request a copy from the BMV although the process may take longer than visiting the local bureau. Temporary ID cards may be available in specific situations.

If you are a new resident of the state, you have up to 60 days to obtain a valid license (30 days for a commercial license). When you apply for a new license at a BMV location, there are a number of items you will need including identification and proof of residency. It’s possible that a vision exam may be required. Older seniors may have additional criteria to meet although a routine physical is not required.

You should also review your entire auto insurance policy with a local broker. Rates will be different in Maryland and you may want to adjust some of your coverage, including deductibles. Available discounts will differ from your old policy, so you may qualify for some new reductions. Your driving distance to your employer my also have changed, resulting in a different premium.

Rookie Driver Program

“Graduated Licensing” is used to give young persons more experience at early ages. A driver education course and on-road experience helps develop confidence and experience. There are now three levels of training. They are “Learners Permit,” “Provisional License” and “Full License.”

Learners Permit

You can obtain a permit at 15 years and 9 months. You must verify your identity and show proof of school attendance. For applicants under age 18, a guardian or parent must cosign the application. Minor applicants may be required to submit multiple documents, including a tax return or health insurance ID card. Two tests are required (vision and general knowledge) before the permit is approved.

There is an available manual with sample tests and training that can help you prepare. Driver safety facts, highway signs, and traffic laws are three of the most important topics discussed in the manual. A basic understanding of these topics is required to pass the exam. A vision screening and knowledge exam must be passed before a license is issued.

Provisional License

The provisional license requires an age of at least 16 years and 6 months. An approved driver’s education and training course must be taken and completed and 60 hours of supervised hours on the road must be documented. Driving between midnight and 5 am is prohibited, unless accompanied by someone who is at least 21 years-old. Maryland auto insurance license changes can be made at any time upon your request.

There are also restrictions that require all passengers be at least 18 or over. And as expected, any moving violation will result in additional training, suspension of license, or both. This will likely cause a large increase in your auto insurance premium. You must be 18 to get your full license and if you have not reached age 21, there can be no violations on your record.If you meet all of the necessary requirements, your provisional classification will be upgraded to the full classification.

New Driver Guide

A “Rookie Driver” guide is also furnished to help prepare both parent and child. Lessons (with checklists) are provided to help cover all situations. Guides are available free and should always be utilized. Several covered topics include:

Vehicle Entry Check – Before getting into the vehicle, check for broken glass, physical body damage, fluid leaks, and conditions and air pressure of tires. Also inspect the inside of the vehicle for unseen damage.

Dashboard controls – Understand where and what controls are, including headlights, turn signals, all brakes, steering wheel, door locks, mirror adjustments, heating/AC, hazard light, windshield wipers, horn, and seat adjustments.

Additional Topics – Entering traffic from different directions, turning at intersections, understanding lane positioning, backing up, parallel parking, entering traffic or merge lanes from shared left lanes, driving through a roundabout, driving when bicycles are in the same lane, passing vehicles, operating your vehicle in wet, icy, or snowy conditions, and passing other vehicles.

License Plate Options

Get A Standard Or Personalized Maryland License Plate

If you wish to add a little scenery to your license plate, you have two options. An Agricultural Plate or a view of the Chesapeake Bay will convert your drab plate to a more appealing option. These plates have an initial $20 fee plus an annual $5 fee. The Chesapeake Bay plate has a yellowish-orange background while the Treasure plate features a blue background. If you lose existing plates, you can order a replacement for a $20 fee.

So far, no options are available for residents that are wishing for a Baltimore Ravens or Orioles plate. Although they would undoubtedly be very popular, most states do not have plates featuring local professional sports teams. The same applies to all of the colleges and universities in the state. We anticipate that these may become options within the next 10 years so stay patient!

Combinations of letters, numbers, and spaces are permitted, although the letter “O” will change to the number “0.” Depending on the type of plate, the number of available characters can change. Since personalized plates have become so popular, it’s possible your first choice may already be taken. Delivery of new plates typically takes about three weeks, and once received, the prior plates should be returned to an MVA office.

The following license options are available:

Agricultural or Chesapeake Bay – An initial fee is charged along with an annual fee. Proceeds from the annual fee benefit the Chesapeake Bay Trust and/or the Maryland Agricultural Education Foundation. The following vehicle Classes are eligible: A, M, EFT, EPO, and G.

Amateur Radio Operator – A copy of your FCC Amateur Radio Operator’s License is required. Passenger cars, trucks weighing 10,000 pounds or less, and multi-purpose vehicles are eligible.

Combat-Related – Only available to veterans or active members of the military that have won awards or honors. Documents needed may include military discharge papers, Purple Heart certificate, or written documentation from the National Personal Records Center. Vehicle Classes eligible are A, M, and EPO.

Disabled – Passenger and motorcycle plates may be ordered. Placards, which are easily movable, are available for vehicles. If you have a temporary disability that will last for three weeks (or more), an application may be submitted with requested documentation. A “disability certification of information” section of the application will have to be completed by your physician. The universal wheelchair symbol is used to identify disabled persons.

Gold Star – Surviving spouses, siblings, parents, or children of fallen members of the Armed Services may apply for this plate. Passenger cars, multi-purpose vehicles, motorcycles, and trucks weighing less than 10,000 pounds are eligible.

Military – Dozens of versions are available, including Afghanistan Campaign, Air Force, Airman’s Medal, Asiatic Pacific, Coast Guard, Combat Action, Congressional Medal Of Honor, Gold Lifesaving, Honorably Discharged Veteran, Iraq Campaign, Korean Service, Kosovo Campaign, Navy Cross, Purple Heart, Silver Star, United States Army, United States Air Force, United States Navy, United States Coast Guard, and World War II Veteran.

Organizations – More than 500 organizations offer personalized license options. Logo and non-logo are available. Several available options are ABATE, Allegheny Community College, Baltimore City Fire Department, Chesapeake Bay Power Boat Association, Friends Of The Salisbury Zoo, Johns Hopkins University Alumni Association, Mount St. Mary’s University, Old Line Garrison, Rocky Mountain Elk Foundation, Seneca Valley High School, Sheet Metal Workers, Sons Of Norway, Steamfitters Local, Temple University Alumni, UMBC Alumni Association, and Washington Nationals.

Personalized – Let your imagination take over! Vanity plates are very popular, with up to seven characters available. Offensive or duplicate requests will be declined. Typically, the process of approval takes about 4-7 weeks.

Driving Record Abstract

Do you need a copy of your driving record? You can order your official records for $12, as long as you pay online or by electronic check. Of course, identification will be needed. If you prefer to order a copy via US mail, you can pay by personal check, as long as your driver’s license number and phone number is on the check. Your three-year driving record can be requested, or a complete record of all information in the MVA data base.

The original issue date of the license, registration record, and certified copy of title can also be ordered. You may also use your phone to show your car insurance ID card. Mobile apps are also provided by many carriers. Maryland auto insurance laws do not place a limit on how many times you can request a copy.

An “MVA Request For Record” form can be downloaded, printed, and mailed for quick service. If a business needs multiple records, a different form is needed (DL-015). If you move to another state, you can still order your abstract. Also available, is an expungement request form (AJ-058), which will remove a conviction from your driving record after three years. However, certain conditions must be met, including no other moving violations during the last three years, no license suspensions, and no prior convictions of major violations, such as DUI or hit and run.

Schedule Your Emissions Test

Vehicle Emissions

Vehicle emissions testing in Maryland is mandatory and helps clean the state’s air and water. An OBD (On-Board Diagnostics) test is required for vehicles that were manufactured in 1996 or any later year. This applies to standard cars and light trucks. The actual procedure to verify emissions is very quick and quite accurate. Pollutants can be easily detected with on-board diagnostic testing. The tool connects to the on-board diagnostic computer to check for potential emission issues. If you have a heavier vehicle manufactured after 2007, the same test would apply.

The procedure creates a direct connection with the vehicle on-board computer which is usually located underneath the dashboard. Failing components and dashboard warning lights are obvious signs of problems. NOTE: If your car or truck had a new battery installed within the last week, wait about a week so that a false emissions reading is not given. Also. Hybrid vehicles must be scheduled for testing within 36 months of the model year.

A gas cap and tailpipe examination are also required for vehicle model years 1977 and newer. This includes cars, light-duty trucks and heavy-duty trucks. Any holes in the exhaust system (or leaks) will cause a failure in the test. It’s also important to have the proper gas cap, and to ensure the seal is snug. Otherwise, it will not pass. And of course, the catalytic converter must be working properly. A missing or loose gas cap will also result in a failed test.

The MVA sends written notification about two months before the scheduled test date. You can schedule the test at any time, once the notice is received. Testing facilities are conveniently located throughout the state. After paying the $14 fee, once a successful test is completed, a certificate will be issued indicating the results of the test. Following a failed test, the cost of a second test is free.

Distracted Driving

Don’t text while you drive! But you know that already. There are many other tasks you should also avoid, such as eating or drinking, taking on your cellphone or Smartphone, reading a map, looking at passengers, or adjusting your radio settings. When your eyes are off the road, often you are endangering yourself, your passengers, other drivers, and innocent pedestrians. And of course, it is illegal to use a hand-held phone or electronic device while operating a vehicle in Maryland.

A first-time conviction can result in a maximum fine of $83. However, the second conviction can increase the fine to $140, and the third conviction can increase the amount to $160. If an accident occurs, points can be added to your driver’s license. Simply writing or reading a text message while driving is also illegal, and the resulting fine is $70. If death or serious injury occurs, up to a $5,000 fine can be imposed and a three-year prison sentence.

The four most common types of distractions are visual, cognitive, manual, and auditory. Although not all distractions are illegal, they can cause an increased chance of having an at-fault accident. Most major Metropolitan areas (Baltimore and Washington D.C.) have the highest concentration of distracted driver crashes. The times of the day with the most reported crashes are early evening and late afternoon. Fridays have the highest frequency of incidents while Sundays have the lowest. Males typically text more than females and account for 80% of the fatalities.

Jakes Law mandates that a driver that caused serious death or injury while texting or speaking on a handheld cell phone can be convicted with a resulting prison sentence of 36 months and a fine of $5,000. The legislation became effective four years ago, and was named after five year-old Jake Owen, who was killed in a car accident in Baltimore in 2011. The driver was talking on the phone at the time of the accident, and was previously texting. The driver served no jail time and only received a $1,000 fine.

Senate Bill 743

This legislation is the first state law that requires peer-to-peer car rental companies to adhere to state insurance, tax, and safety regulations and laws. Although not endorsed by all interested parties, the law offers the needed regulation that benefits consumers. An 8% sales tax applies to p2p carsharing companies, although it increased to 11.5% in 2020. When conducting business at an airport, the usual airport fees will also be imposed, and required insurance licenses must be maintained. Also, the national safety recall law must apply to any vehicles operating in Maryland.

Parity among peer-to-peer carsharing companies is the ultimate goal, so that all parties comply with the same regulations, tax laws, and guidelines. Companies that operate at airports are subject to separate contracts and any applicable airport fees. National safety recall laws must also be followed, including the grounding of vehicles.

Review

Auto insurance laws in Maryland are designed to keep drivers and passengers safe and protect victims in accidents. Minimum liability limits are established for all registered vehicles. By knowing the regulations, you’ll save money on your insurance. This website regularly updates any changes regarding legislation or carrier underwriting. If your policy is non-renewed, we also review your best options.

PAST UPDATES:

Undocumented immigrants can now register vehicles, purchase auto insurance coverage and drive on state highways. Of course, the required written and driving tests must be taken and passed. Thus, immigration status will no longer be a reason to deny driving privileges and minimum safety standards for all persons will have to be met.

In a recent comprehensive study of Maryland car insurance rates (research provided by NWallet), the cities with the lowest prices include: Fairplay, Williamsport, Hagerstown, Smithburg, Rocky Ridge, Hancock, Maugansville and Cascade. Prices, however, will vary, depending on age of persons that are listed on policy, the number of reported violations and accidents, and type of vehicles that are covered.

After facing mounting criticism and concern from policyholders and the Insurance Administration, State farm will no longer raise premiums for non at-fault accidents and utilizing the emergency road and hazard service on most policies. Also, many previous rate increases will either be rescinded, or a refund will be sent to effected policyholders.

An unusually-high number of consumer complaints related to rate increases led to the investigation. While it is legal to increase premiums for these types of situations, most other carriers refrain from increasing prices. Also, the correspondence sent by State Farm to customers was determined to be confusing, with some details missing.

Full Coverage Or Just Liability On Your Vehicles? Compare Options

Full coverage or just liability insurance on your vehicles? This is a common dilemma that many car-owners face when one or more cars (or trucks) are no longer financed. It’s great to save hundreds of dollars per year (or thousands) on your car insurance rates. But is the risk worth it? Can you afford to replace a vehicle and start making monthly payments? Is state-minimum coverage enough? In most states, liability coverage or a financial responsibility bond is required. Do you have an emergency cash fund that can pay the deductible and other related expenses?

And when is the best time to remove your comprehensive and collision coverage? Which deductibles are the most cost-effective? Although full coverage protects against a wide variety of risks, your total out-of-pocket costs may be higher, depending upon the drivers and vehicles in your household. Liability is legally required in all states. Collision and comprehensive benefits are not. In most states, the minimum required bodily injury liability limits are at least $25,000 per person and $50,000 per accident, although higher coverage is recommended.

If you remove full coverage from your vehicle, collision and comprehensive benefits may be returned, assuming there has been no damage to the car or truck. Selecting “comprehensive only” is also an option, especially for older vehicles that are regularly driven. The most common comprehensive deductibles are $0, $50, and $100. The most popular collision deductibles are $250, $500, and $1,000. Luxury and commercial vehicles often have a $2,500 collision deductible. Commercial fleet or self-insured policies often include higher deductibles to reduce costs.

Important Facts To Consider

Your financial situation may be the most important variable. If you’re in a position which you can neither afford to make an additional car payment, or are not able or willing to pay thousands of dollars for repairs, then removing collision coverage would not be a good idea. You will be faced with either paying to repair a vehicle with money you don’t have, or spending $200-$600 per month that was not in your budget. The number of available vehicles in the household also must be considered, since an alternative mode of transportation may not be available.

Utilizing ride-share companies can reduce the number of miles driven on your vehicles. Although the cost of gasoline is still higher than it was several years ago, and electric vehicles are very expensive, paying for your transportation may still be very cost-effective.

The availability of Uber, Lyft, and other ride-sharing companies help, but does not completely solve the problem. Although occasional driving issues are solved, these types of companies can not offer distance-driving needs. Hiring a driver or a limousine service also will not likely eliminate your concerns. However, if driving privileges are temporarily or permanently revoked, these options will need to be considered. Note: Uber also is heavily involved in food and meal delivery, and has recently increased their share in the prescription delivery market. $0 delivery fees are available in many areas.

Leasing A New Vehicle

Leasing a new vehicle will cost less, and low and no down-payments are always available. Of course, maintenance and repair costs for the term of your lease (assuming between 24 and 42 months) should be very low. Many new lease agreements now offer 100% maintenance coverage for either 24 or 36 months, resulting in a low lease payment as your only out-of-pocket expense. Routine maintenance (oil changes and tire rotation) are often provided at no charge. Most major repairs are covered under the standard 36-month warranty, and extensions are offered on most leases.

Consider The Age Of Your Vehicle

Naturally, the age of the vehicle is perhaps the biggest factor. Typically, when the age is between 8 and 10 years old, it’s the right time to look into removing collision and/or comprehensive benefits. At 12-years-old and higher, it generally is cost-effective to remove some of the coverage. At the 14-year mark, the value has depreciated to a point that it no longer makes good economic sense to have any physical benefit other than liability coverage (and perhaps fire and theft).

Low-mileage vehicles should be considered on an individual basis. Despite the age of the vehicle, much of the resale value may have been retained because of the lack of driving and demand for this type of car or truck. Also, especially with older vehicles, the collision and comprehensive deductibles do no have to be identical. Often, the collision deductible is much higher than the comprehensive deductible. $500/$0, $500/$100, and $250/$0 combinations are common.

Antique and custom vehicles may be able to be insured for their market value. An appraisal will be needed, but the cost of coverage is typically less than a car or truck. The wear and tear will impact your choices. Vehicles in poor condition only need liability protection. However, if the car or truck can not pass a required inspection, that vehicle will not be allowed to be driven, and liability coverage can be removed (assuming the vehicle never becomes drivable again). Note: Flood vehicles are often sold and should be avoided, if possible.

Each Company Offers Different Savings

The amount of savings will vary from one carrier to another. For example, if you own a pair of vehicles that are seven years old, you would be at the point where altering your coverage should be examined. Company A may charge you $1,500 per year for your premium while Company B only charges $1,300. Having additional lines of business with the same carrier may help to reduce the premium. Several customer-loyalty discounts are offered by most carriers that can reduce the premium up to 20%. Group payroll-deduction (if available) may provide additional savings. MetLife previously offered low-cost group rates until Farmers purchased their book of business.

If you place “liability only” on both vehicles, Company A’s rate may change to $900 while Company B’s rate may only reduce to $1,100. We wrote an article about the best car insurance companies in Maryland that may help. All of the companies we listed are very highly-rated. Additional carriers are available for small and large group payroll-deduction. Underwriting guidelines are often more relaxed with employer-provided policies. Seniors with more than one at-fault accident in the last three years may be more susceptible to cancellations.

Thus, in this example, keeping full coverage is beneficial when you are insured with Company A. Yet, when a different set of deductibles is used (on the same vehicles), another carrier now charges a lower premium. And although we didn’t consider any additional companies, there may be up to 10 more carriers that now have better rates. A helpful factor is that insurers are required to post rate-increase request publicly. And although the entire amount may not be approved by the DOI, you will have as much as six months advanced notice. It’s also possible that a carrier will not change pricing for more than 12 months.

Carriers that often offer low premiums for vehicles with full coverage (collision and comprehensive coverage) include Progressive, Nationwide, Geico, Allstate, Penn National, Donegal, and Esurance. Carriers with low rates for vehicles with only basic liability coverage include Allstate, Erie, Progressive, Nationwide, and Farmers. Specialty and commercial coverage is offered through selected carriers.

Do You Have Alternate Transportation?

An important consideration is to create a scenario where you remove collision coverage from your car or truck and you’re involved in an accident that is your fault. Your vehicle is totaled. Of course, the damages to the other party are paid by your insurer and you have no out-of-pocket cost (assuming you have sufficient bodily injury and property damage limits).

However, you are now without transportation on one vehicle. How much of a change in lifestyle will that cause? If you don’t think your household can afford an additional $250-$750 per month for replacement transportation, then you better leave your collision and comprehensive coverage in tact. Otherwise, consider removing them. And revisit this option each year as your financial situation changes. Leasing a vehicle is often less expensive than purchasing an older financed vehicle, that also requires full coverage.

For a temporary fix to a situation where you need a quick replacement, leasing a vehicle will allow you to avoid a large down-payment and keep your monthly premium in the $200-$350 per month for very reliable options. Maintenance expenses will be nominal and you can walk away from the lease without any obligation (or elect to purchase at the end of the lease). However, you build no equity and are starting from scratch when the least period ends. NOTE: If your residual value is lower than the market value of the vehicle, you may be able to sell the vehicle for a small profit.

Condition And Mileage

A 12-year old vehicle purchased new for $35,000 may still be worth $10,000. It also may be worth less than $5,000. Some of the major determinants of the value are mileage, condition (including exterior body damage and interior), reliability, and demand for that specific make and model. If the vehicle has held its value, it’s worth keeping collision coverage in place. But your own perception of the current market value may differ greatly with the actual Blue or Grey Book value. Accurate estimates are provided free online.

For example, a 2015 Toyota Camry (very popular older car) in excellent condition with about 100,000 miles could be worth as much as $6,000-$7,000. But the same vehicle in rough condition with $175,000 miles may only be worth about $1,000. That’s a big difference. We use Edmunds to help determine the market value of any vehicle referenced in our website, although there are several other reputable resources. Prices generally reduce each year, so it’s important to constantly update values.

NOTE: Since the value of your car or truck reduces every year, your premiums may also slightly reduce. But once a vehicle is about 10-15 years old, the reductions in your rate may stop, or perhaps start increasing. Typically, that’s a good time to consider stripping the “full coverage” and calculating the savings with “liability only” coverage. You can also keep fire, theft, and vandalism benefits (only) and delete the collision coverage. Towing and substitute transportation benefits are often packed with the collision coverage.

Who Is Driving The Vehicle?

Is A Teenager Driving Your Car?

A major determinant in the decision is simply who the principal driver is of the car in question. If it is a teenager or someone with very little practical driving experience, you may wish to hesitate or postpone taking collision coverage off. After all, the risk of an at-fault accident is high. If there are multiple inexperienced drivers in the household, more than one vehicle will be impacted.

Conversely, if the vehicle is rarely driven, and the risk of an incident is fairly low, having just liability, medical payments and uninsured motorists protection (only) may result in substantial savings. There is always the risk that as soon as you delete the collision coverage, you’ll have an accident. However, if the other driver is at fault, their coverage will pay for the repair to your vehicle.

If you are currently covered with a company that bases its rates on the number of miles the vehicle is driven, the cost of keeping collision coverage may be nominal. This would occur if the number of miles driven is less than 3,000 and especially if an additional vehicle is in the household. When the number of vehicles in the household exceeds the number of drivers, typically, the average miles driven is lower.

Will You Be Selling The Vehicle?

This is another big factor. If you are selling the car, there’s a good chance you will not be the owner within the next few months or perhaps longer. In this scenario, since it is such a short period of time, it would not be advisable to change the policy. The extra money you pay for a few months is not worth the risk you would take of not only losing the sale, but getting stuck with a badly damaged car and having to pay for a newer vehicle. In this scenario, leave liability, collision and comprehensive benefits on your vehicle.

If subsequently you decide to keep the car (or truck), it may be a better time to consider removing coverage. The cost of collision and comprehensive coverage can be substantial over a period of 5-10 years (or longer). If a youthful driver is present in the household, the cost will be higher. The existence of a high-risk driver in the household will also raise the premium. Although a driver-exclusion may be available, the risk of the driver operating your vehicles is a valid underwriting concern of the carrier.

You should also be concerned with a potential buyer test-driving the vehicle. In most states, if they have an accident and cause damage, your insurance will be liable and responsible for covered expenses. If you have “just liability,” you’ll have to pay for the repair of the vehicle out of your own pocket before selling it. You also may lose a few potential sales if the buyer can’t test-drive the vehicle. However, it’s possible that their coverage may pay for physical damage while operating your vehicle.

How Quickly Do Vehicles Lose Their Value?

A new car or truck instantly depreciates once it is driven by the new owner. The percentage is approximately 6%-12%. For the next four years, the average depreciation is approximately 12%-22% per year. If you purchase a used vehicle, the rate of depreciation will be slower. Higher-value vehicles are more expensive to insure, but retaining collision coverage is a more popular option. Deductibles of $1,000 and above are more common with luxury vehicles.

Vehicles that appreciate are typically antique or classic. Special policies are offered for these types of cars (and trucks) that allow you to insure for the market value of the vehicle. An appraisal may be needed. Classic car rates are typically about 35% less than standard rates. Coverage is guaranteed to match the value of the vehicle. You can utilize several reputable resources to determine the value of your vehicle. Examples are the Kelley Blue Book and N.A.D.A.

You Can Keep Comprehensive Coverage Without Collision Coverage

Higher-mileage vehicles that are more than 10 years old are popular options for removing collision and retaining comprehensive benefits. Your premium will reduce, and the vehicle can still be repaired from an accident that is not your fault (assuming the other party has coverage). Common claims that are covered under the comprehensive section of the policy include falling objects, fire, theft, vandalism, weather damage, and many animal-damage incidents.

Savings will vary, depending upon the age and value of the car or truck. Vehicles that are financed or leased will not be able to remove this coverage. The most cost-effective situations are when the vehicle is worth at least $10,000. Glass-breakage may be covered at 100%, regardless of your deductible. Note: Keeping full coverage on a vehicle may allow you to include several free benefits, including towing, small amounts of life insurance, or accidental medical coverage.

Additional Information:

Increasing your potential out-of-pocket expense on the most expensive vehicles to insure, will of course, save the most money. Of course, if you have a propensity for hitting other vehicles, then keep low deductibles! The following vehicles (below) should always be considered for increased collision and comprehensive deductibles. For example, increasing deductibles by $250 could easily result in annual savings of $250 or more.

Dodge SRT Viper, BMW 760Li, Nissan GT-R Nismo, BMW M6, Audi A8L, and the Mercedes GL63 AMG.

Car Insurance Rankings And Reviews In Maryland – Free Quotes

Who are the biggest writers of car insurance policies in Maryland and where do they rank? And do the largest companies offer the cheapest rates? Biggest is often the best, but not 100% of the time, as you quickly see with our free quote request. Compare multiple companies in minutes and view your personalized price report for all vehicles and carriers. Our side-by-side comparisons instantly show you how you can save money on your current coverage. The helpful and accurate reviews will show you which policies are the most budget-friendly.

We have listed below the 50 (We expanded our Top-40 list) insurers that issue the most auto policies in the state (based on premium dollars). There are about 160 companies that write business, although most carriers outside of the Top-50 do not issue a significant number of contracts. We utilize information from J.D. Power, consumer rating agencies, and claim data reports to help determine your best options. We also update information biannually for single, couple, family, and self-employed policies.

1. State Farm Mutual

2. Geico Casualty

3. Erie

4. Geico General

5. Allstate Indemnity

6. Government Employees

7. Allstate Insurance

8. Nationwide Affinity

9. USAA

10. Progressive Select

11. Nationwide Mutual

12. USAA Casualty

13. State Farm Fire And Casualty

14. LM General

15. MAIF

16. Geico Indemnity

17. Nationwide General

18. Progressive Specialty

19. USAA General

20. Liberty Mutual Fire

21. American States Preferred

22. Allstate Property And Casualty

23. Encompass Home And Auto

24. Garrison Property And Casualty

25. Trumbull Insurance

26. Progressive Advanced

27. Travelers Home And Marine

28. Agency Insurance Co Of MD

29. Elephant Insurance

30. Amica Mutual

31. Metropolitan Group Property And Casualty

32. Esurance

33. CSAA General

34. Peninsula

35. Progressive Direct

36. Travelers Property And Casualty

37. CSAA Affinity

38. Brethren Mutual

39. Mid Century

40. State Auto Mutual

41. Amco

42. IDS Property And Casualty

43. Pennsylvania National Mutual

44. Progressive Classic

45. Selective Insurance

46. Encompass Insurance

47. State Auto Property And Casualty

48. Mutual Benefit

49. Cincinnati Financial

50. Unitrin Auto And Home

Each year, the Maryland Insurance Commissioner must publish a written report detailing the impact that both auto and homeowner’s prices have on consumers in the state. The General Assembly and Governor receive the findings, and typically, the results are made available to the general public. Brokers and reputable websites (like us) utilize this information to help customers find the best offers in their areas. We customize proposals so they can match your personal budget and benefit needs. If vehicles or drivers in your household change, the cost of coverage will also change.

Pay-Per-Mile

If you move, change vehicles, add or subtract drivers, or change coverage, we can easily adjust our quotes to maximize savings. Prices can increase (or decrease) if you move to a different county. Note: “Pay-Per-Mile” companies are becoming more popular. The driver pays a low monthly per-mile rate that can often save hundreds of dollars per year in premiums. This low-mileage coverage may be ideal for Seniors who rarely operate a vehicle. Pay-as-you-drive (PAYD) plans determine pricing on how you drive, along with how far you drive.

Telematics is the current technology that tracks your driving habits, including speed length of trips, quick accelerating, sudden braking, and other habits. Coverage without a plug-in device may be available, although the savings won’t be as substantial.

College students, persons that work from home, and persons that regularly utilize mass transit systems, are often ideal candidates for this type of coverage. You can also use a separate policy if its cost-effective to use just one vehicle for these types of benefits. Calculating your cost is very simple so you can determine potential savings before you sign up.

“Pay-Per-Mile” policies are often available through the following companies:

Esurance

Mile Auto

MileWise (Allstate)

Noblr (USAA)

SmartMiles (Nationwide)

Note: SmartMiles works ideally with customers that drive less than 7,000 miles per year. The policy has two parts – a variable rate that changes, depending upon how often you drive, and a base rate that remains level throughout the term of the policy. Living close to work, not driving to work (retired), or having an extra vehicle in the household are situations that may be good reasons to consider “pay-per-mile” policies. The small device that is connected to the vehicle can easily be removed if you terminate the service.

Quick Observations About Several Carriers On The List

Elephant Insurance Really Owns An Elephant!

Elephant doesn’t write business in many states. But this British-domiciled company is expanding, and we expect them to offer coverage in twice as many states within 10 years. And yes, they really do own an elephant! And they are also annually recognized for treating employees well. The parent company (Admiral Group) is one of the biggest insurers in the United Kingdom, so the financial backing is available.

Expansion to all parts of the US is unlikely, although additional states will be added by 2026. A bundling discount is offered when home, umbrella, and motorcycle policies are combined with the vehicle policy. Like many carriers, “green” discounts (although not substantial) are offered when paperless billing and e-signature are used.

Amica is one of the oldest and most established companies, although not as well-known as some of the other “name” options. They systematically maintain high ratings for customer-service and financial safety (J.D. Power and A.M. Best) and tend to avoid major price fluctuations. They offer “no-frills” policies in may areas. Typically, you can only purchase coverage online, but their internet quoting system is very functional. 24/7 customer service is available, and consumer satisfaction for claims is generally very positive. The Baltimore Regional office is located on Columbia Gateway Drive.

Erie is another “quiet” company that doesn’t have a large advertising budget. But in many pockets of the state, they have very low rates. Their offices are often smaller 1-2 person operations, but it doesn’t impact their service. While Northwestern is the “Quiet Company” for life insurance, Erie is the “Quiet Company” in the property and casualty business. They also offer competitive term life insurance coverage for face amounts of $250,000 and less. Often, their term rates are competitive with major carriers such as Protective Life and Banner Life. There are many Erie agents conveniently located throughout the state. Erie writes business in 12 states (including Maryland) and is the 15th-largest property and casualty carrier in the US.

Geico has terrific commercials, although their prices aren’t so terrific in all areas of the state. And in case you were wondering, “G-E-I-C-O” stands for Government Employees Insurance Company. The original owner sought to cover as many government employees as possible, so the name has not changed. Berkshire Hathaway owns Geico, and the world headquarters are located in Chevy Chase. Coverage is offered countrywide and in many areas, the prices are the lowest among major carriers. Boat coverage is available for all state waterways.

Metropolitan, perhaps better known as MetLife, is the nation’s largest life insurance company. Although they no longer utilize agents, their group property and casualty business is quite active, especially through large companies. “Met P&C” offers attractive payroll-deduction options to many corporate clients. Reductions are often as much as 10%, along with getting an easy payment method. Many retired MetLife employees continue to payroll-deduct auto and home premiums through their pension checks. Although Farmers recently purchased the auto and home business, coverage is still offered.

State Farm lives up to their “Good Neighbor” nickname since they seem to be on every corner! Always verify you are getting their discounts since there are many. In the past their offices have sold health insurance (not their own product), although an experienced broker is a much better choice for purchasing Exchange plans. Their investment and rental property rates are also very competitively priced. Additional commercial plans are available through local brokers and corporate offices. Small business and banking products are also offered.

Zurich may not be a familiar name, but you probably recognize the Farmers Group (and their catchy commercials). Zurich is the parent company to Farmers, who happens to be the parent company to 21st Century. The combination of their assets and market-share propels them to the Number 12 spot. Farmers commercials are very popular and easily-recognized. Farmers agents typically work very closely with the local community, and offer extremely competitive rental property rates in many areas.

Ameriprise (no longer in the top 50) offers lifetime renewals (subject to certain conditions). Also, if you are a member of Costco, a small discount applies to your premium. Ameriprise also provides financial planning through their field force of brokers. 401k and IRA rollovers are popular products offered along with many retirement-oriented products for Seniors. Individual stocks can also be purchased and sold from certified financial planners. Fidelity, Ameritrade, and other investment companies can also provide excellent investment advice. Self-management is also a popular option through their many online tools.

Brethren Mutual is a 100-year-old company that provides coverage in Maryland, District Of Columbia, Delaware, Pennsylvania, and Virginia. The main office is in Hagerstown on North Edgewood Drive. Along with the standard auto and home policies, Brethren Mutual also offers personal umbrella, commercial umbrella, commercial auto, workers’ compensation, farm auto, and farm umbrella policies.

Allianz (also no longer in the top 50) insures more than 70 million persons (mostly outside the US) and was founded more than 100 years ago. They own Fireman’s Fund, which is a large property and casualty insurer, and provide investment products for many financial planners. Their tax-deferred annuities have been very popular since the 1990s.

Cincinnati Financial is, of course, based in Ohio. But they offer respectable rates in many states, including Maryland. Mostly available through independent brokers (and our website), they also offer a wide range of, as you may expect, financial products! CinFin (their industry-recognizable name) was named by Forbes Magazine as one of the 50 most trustworthy financial companies in the US. When bundling their auto and home policies, rates are very competitive.

Encompass is marketed through 2,600 independent brokers. Coverage is offered in 39 states, and market share has been slowly expanding. A,M. Best has assigned an “A+” rating to the carrier and several of its subsidiaries. Along with auto and home insurance products, additional lines of business include personal umbrellas, home businesses, motorcycles, RVs, boats and watercraft, and identity theft.

A “Lifestyle Endorsement” provides the following benefits: extended care facility coverage, cost of alternative school (if needed), advanced payment reimbursement, traveler’s coverage, live-in home care reimbursement, open peril coverage for sports and hobby equipment, and increased jewelry coverage.

Maryland Department Of Insurance Monitors Companies

Reform Act Of 1995

The Reform Act of 1995 requires that companies must offer pricing that is not unfairly discriminatory or excessive. If a Maryland car insurance rate is high, unless it is considered unfair and unjustified, it will remain in place. Normal competition among carriers will also naturally force down any unnatural pricing. If a rate is artificially-priced too low in an effort to secure market-share, generally, the premium will come back up quickly. The concept of “competitive rating” eliminates the process of requesting prior approval of rate changes.

If an insurer wishes to increase or decrease rates, they are no longer required to wait to receive approval after officially filing a request. This allows companies to react quicker to changes to market, economic or natural conditions that impact claims and expenses. Presumably, when less claims are filed than originally estimated, often we will see a small rate reduction. However, the competitiveness of other companies in that zip code (or county) will have an impact. Also, it’s possible that a period of low claims will be a result of unseasonably-favorable weather, instead of underwriting reasons.

Often, a “holding company” owns several insurance companies that offer similar but different products. Several of the larger holding companies include State Farm, Geico, Allstate, and Nationwide. The 10 largest companies generally represent 80%-85% of all policies written in the state. These carriers typically feature separate companies for their preferred, high-risk, and commercial business.

This legislation also applies to homeowner’s insurance in the state. About 120 companies write this type of business, although the biggest 10 carriers account for about 80% of market share. When companies are not willing to offer competitive pricing in some areas, it’s important that the reason is justified and backed up by financial loss-ratio data. To maintain a competitive environment, typically, products and carriers must be able to easily enter the market, and the number of writers and their concentration of policies must be monitored.

The Administration monitors homeowner’s prices to ensure “healthy” competition. Obviously, there are going to be differences in premiums from one carrier to another. Almost always, this is entirely justified. The old practice of redlining (more popular in the 1980s and 1990s) is of course, illegal. This occurred when carriers were extremely reluctant to write business in specific areas. Often, it was urban areas with higher crime rates.

Future Changes To Top-50

Over the next decade, it is unlikely that you will see major changes to the list. Although some of the larger carriers, such as Geico, USAA, Allstate, and Progressive may shift several positions, it’s unlikely that one specific company will leapfrog five spots and gather a significant increase in market share. The exception occurs when corporate takeovers, mergers, or sales quickly move one company above many others.

However, Elephant Insurance (part of Admiral Group) could become a viable force in the state in about 5-10 years. Although their home office is not in the US, they have slowly been expanding and gaining market share. If they do start writing policies in Maryland, we’ll publish an in-depth analysis about their initial rates, and the way they have conducted business in other states. So far, in other areas, their pricing is competitive, but brokers and agents are more comfortable recommending other companies.

Elephant offers some unique discounts for their policyholders. We published an article detailing the best discounts for your car insurance that will help anyone, regardless of which company provides their coverage. While some discounts are automatic, there are several you should ask for, including “good credit,” “good student,” and “55 and retired.” Headquartered in Richmond, they offer 10-minute online quotes, and a “repair Assistance Program” that offers a streamlined process.

What About The Companies With The Lowest 2023 Rates?

Compare cheapest car insurance in Maryland

Save Money On Your MD Car Insurance And Be Happy!

Prices, of course will dramatically vary, depending on age, where you live, how many tickets you have, the type of vehicle you drive and several other factors. However, we created a few scenarios (below) that provide a baseline comparison of rates among different companies licensed and approved to write business in the state.

The MD Insurance Administration provided the raw data. Premiums shown are for a six-month period. Seven random companies were chosen among the carriers offering the most competitive offers. In future years, more companies will be participating. Also, additional age and vehicle scenarios will be used. Newer vehicles will also be used in the quoting process.

Situation 1 – 30 Year-old Male in Hagerstown area. Vehicle is 2006 Subaru Forester with $100,000/$300,000 liability and $250 and $500 deductibles on comprehensive and collision:

$814 – AIG

$978 – Allstate

$765 – Amco

$967 – Amica

$810 – Cincinnati

$771 – Cumberland

$916 – Encompass

$944 – Erie

$1132 – Farmers

$734 – Geico

$643 – Horace Mann

$1224 – Metropolitan Group Property & Casualty

$961 – Nationwide

$675 – Peninsula Insurance

$1341 – Travelers

$1037 – USAA

Situation 2 – 50 Year-old Female in Cumberland area. Vehicle is 2010 Ford Explorer with $250,000/$500,000 liability and $250 and $500 deductibles on comprehensive and collision:

$796 – Amco

$983 – Amica

$815 – Cincinnati

$647 – CSAA

$791 – Cumberland Insurance

$665 – Erie

$676 – Geico

$537 – Horace Mann

$774 – Meridian

$794 – Metropolitan

$650 – Mutual Benefit

$893 – National General

$1012 – Nationwide

$674 – Old Dominion

$851 – Travelers

$839 – Unitrin

$597 – USAA

Situation 3 – Married couple (ages 35 and 32) with two non-driving children in Oakland area. Vehicles are 2005 Nissan Altima and 2010 Dodge Dakota with $250,000/$500,000 liability and $250 and $500 deductibles on comprehensive and collision:

1422 – Allstate

1377 – Amco

1018 – American National

1112 – CSA General

1252 – Encompass

$1213 – Erie

$1513 – Farmers

$1430 – Foremost

$1254 – Geico

$764 – Harleysville

$951 – Horace Mann

$1416 – Meridian Security

1308 – Metropolitan Direct

$774 – Old Dominion

$806 – Peninsula

$1189 – Selective Insurance of SC

$1496 – State Farm

$1536 – Travelers

$1037 – Unitrin

$1313 – USAA

Situation 4 – Married couple (ages 29 and 29) with two non-driving children in the Annapolis area. Vehicles are 2011 Chevrolet Silverado and 2007 Ford Taurus with $30,000/$60,000 liability and $250 and $500 deductibles on comprehensive and collision:

$1495 – AIG

$1204 – American National

$1626 – Cincinnati

$1977 – Erie

$1500 – Geico

$1848 – Horace Mann

$1562 – IDS

$2229 – Meridian Security

$2230 – Metropolitan Direct

$2015 – Mutual Benefit

$2610 – Nationwide

$2408 – Old Dominion

$2612 – Progressive

$2243 – State Farm

$2565 – Teachers Insurance

$2380 – Unitrin

$1992 – USAA

Situation 5 – 65 Year-old Male in Queen Anne’s County. Vehicle is 2012 Ford Escape XLS with $100,000/$300,000 liability with $250 and $500 deductibles on collision and comprehensive.

$745 – AIG

$951 – Allstate

$452 – American National

$632 – Cincinnati

$664 – CSAA

$890 – Encompass

$591 – Erie

$471 – Geico

$462 – Horace Mann

$606 – IDS

$670 – Metropolitan Direct

$545 – Mutual Benefit

$548 – Old Dominion

$596 – Penn National

$716 – State Farm

$521 – USAA

Buying Business

Sometimes, business is “bought,” by artificially and temporarily lowering rates. When this phenomena occurs, initially, prices decrease, and new policy written business often sharply increases. Of course, liberal underwriting can also contribute to many policies being written that should have been declined or charged a higher rate. Ultimately, much of the business falls by the wayside, but just enough is kept in-force to make the process somewhat profitable. Retaining the most profitable business is critical to the insurer to maintain competitive rates.

Within the next 12 months, we will also be publishing our customized ratings, based on customer comments and experiences, proposed rate changes, past fluctuations in prices, and anticipated changes in policy and coverage. We will be utilizing written and voicemail responses from 500 random Maryland residents recently contacted. No names, personal, or financial data will be requested or used.

Maryland All-Terrain Vehicle Coverage – Companies Offering Policies

Agency Insurance

AIG Property Casualty

Allstate Property And Casualty

Amco

American National Property And Casualty

American Property And Casualty

Amica Mutual

Chubb National

Cincinnati Insurance

Donegal Mutual

Encompass

Erie

Esurance

Foremost

Geico Indemnity

Hartford Casualty

Markel American

Meridian Security

Metropolitan Casualty

National General

Nationwide

Pharmacists Mutual

Privilege Underwriters

Progressive Casualty

Rider Insurance

Selective Insurance

State Farm Mutual

Travelers Property Casualty

Additional Information:

Speaking of lists…A recent study revealed the states with the rudest drivers. Maryland was rated 32nd (above average) well behind nearby New Jersey and Washington DC. Interestingly, MD drivers seem to despite Pennsylvanians the most while DC drivers list Maryland residents their biggest nemesis on the road. By the way, North Dakota and Maine were determined to be the the most well-behaved states.

Not a positive ranking, but you should still know. Baltimore was selected as one of the 10 most dangerous cities when driving in rain or snow. The study, released by Allstate, highlights areas of the country with a combination of bad weather and high incidences of accidents. Certainly, this season’s snowfall is not helping, especially in Eastern cities that are experiencing record snowfalls.

Vehicle Discounts That Will Lower Your Rates

Are you paying too much for your auto or truck insurance in Maryland. Perhaps you’re not qualifying for many of the available discounts. Whether you’re insured with State Farm, Allstate, Progressive, Liberty Mutual, Nationwide, or Esurance, you always are going to look for ways to reduce your premiums. Maryland drivers have many available reductions that can potentially save hundreds of dollars per year. Also, new programs are periodically introduced that can lower prices of coverage for young and Senior drivers.

Safety, bundling, loyalty, and group discounts are the most common ways to reduce prices, and they provide consistent savings. Group and employer-provided policies to active and retired workers can reduce rates by 5%-15%. Additional savings are provided when policies are paid through active payroll or retirement checks or deposits. Prepaying premiums can also result in large savings with selective carriers. Utilizing paperless billing options may also provide savings with many carriers.

We briefly discuss the major options in our complete guide, so perhaps you can get in on the savings! Our website is designed to reduce your auto insurance rates by offering sound advice and free comparisons (in the quote box near the top of the page). You can also compare costs with multiple carriers for vehicles that you are contemplating buying, but have not purchased yet. Many deductions are also available that are not discussed, including Military membership (active or retired), pay-in-full, paperless, low-income (in some states), and electronic debit.

The “base rate” that carriers charge for policy coverage is the starting point that the consumer pays. Surcharges increase the rate, and generally are the result of moving violations, at-fault accidents, or high-performance vehicles. Discounts will reduce premiums, based on the amount of risk that can be eliminated. If a risk is permanently removed, the premium reduction will be larger.

These are the types of discounts we teach you to ask for. Newer vehicles may feature discounts that you previously did not qualify for, and low-mileage reductions have also been added by many carriers. Leased vehicles may be eligible for additional perks by the vehicle manufacturer. However, extended warranty options generally need to be purchased.

Slow Down!

Reduce Your MD Car Insurance Rates With Discounts

Don’t drive so fast! We know. That’s not really a discount, but by slowing down, you’ll likely save a lot of money. Here’s how: Insurance companies will routinely check your driving record. Any claims that involve vehicles you own will also be checked. Although the first violation may not result in a premium increase, additional moving violations may be treated differently by an underwriter.

Although they are looking for major violations such as a DUI, DWI, hit and run, reckless operation or license suspensions, they will document other minor violations. Future eligibility of discounts can be impacted. Multiple speeding violations can result in bigger rate increases, especially if a driver’s license was suspended. Excessive speeding can also result in an immediate lice suspension.

Going through a stop sign or failing to yield will hurt your record just as much as a speeding ticket. And since it takes about 36-42 months to be erased from your official record, you may be forfeiting a lot of money. Fortunately, parking tickets do to have any impact on your policy. Registration infractions also do not impact the cost you pay to cover your vehicle. However, the car or truck you drive must remain legally-registered or the vehicle will not be allowed to be operated.

Even if you’re not considering changing carriers, having a ticket on your record may keep you from qualifying for “good driver” discounts that every company offers. So, although you won’t be charged more for the blip on your driving record, it may keep you from earning a rate reduction. And it has the same effect. For example, you may become ineligible for up to 20% in superior driving discounts and deductible-reduction options. Although they can be earned again, the delay may be as long as 60 months.

If you have more than one moving violation (especially more than two), it will become very difficult to find lower prices. Not impossible, but harder. As the violations slowly disappear from the BMV records, you’ll start to pay less for your coverage. When your record is clean, you’ll notice even bigger savings, and possible eligibility for additional discounts. Multiple comprehensive claims (fire, theft, or vandalism) may also negatively impact your cost of coverage.

Impact Of Youthful Drivers

A sports car and a youthful driver in the household can be a very expensive combination. No, we’re not going to tell you to get rid of either one! However, often, higher rates are a result of a particular vehicle being assigned to the wrong driver. For instance, if your son or daughter don’t drive that sports car very often (and we assume they do not), perhaps they should be assigned to less- expensive vehicles on your policy. The savings is often significant.

However, several companies do not assign specific drivers to specific vehicles. Younger drivers can operate any vehicle in the household, unless specifically excluded. If the child is away at school most (or all) of the year, a rate reduction is possible. If the vehicle is housed at the location of the school, the discount may not be offered. Students in graduate school or medical school will also be eligible for a premium reduction. However a medical resident in a hospital will not be eligible.

You may have a specific designated vehicle that is mostly driven by one or all of your children. It’s probably an older vehicle. If that fits your household situation, it’s important to make sure your broker or agent knows that. You’ll save a lot of money by assigning the right driver to the vehicles that will minimize the rates. And of course, knowing teenage driving rules in the state helps. Our article (here) will help you better understand the rules and regulations.

Since it’s not automatically completed by the carrier, often, you do have to ask. And since underwriters often re-rate policies every few years, it’s important to verify that you’re not being overcharged by having the wrong persons assigned to the wrong vehicles. Also, renewing a specific reduction (good-student, for example) may not be automatic. Each six months, continuation of existing discounts should be verified. It’s also wise to compare your new declarations page to the previous page, to verify that no discounts have been removed.

By having your teenagers stay away from your expensive cars, you’ll come out ahead. He/she can still drive the higher-valued vehicle, but must not drive it on a regular basis. Naturally, each driver in the household would be covered in every situation. By getting rated as an “occasional” instead of “principal” driver, the premium reduction could be very large. If their driving preference changes, the insurer should be notified. If one of the vehicles is titled in a child’s name, a separate policy may be needed.

Your Zip Code

Do you live in a zip code that is located in more than one county? Perhaps you’re located near the border of Howard or Montgomery County? Or perhaps Baltimore and Harford Counties? You may not be aware that many insurers utilize your county of residence to calculate your rate. Sometimes, if you live in a zip code close to another county, you may be accidentally (and unintentionally) receiving rates based on the wrong county. If you recently moved, and did not notify the carrier, current pricing may not be accurate. Also, distances to/from work may need to be adjusted.

Don’t Gamble By Neglecting To Shop Different Companies

There are several carriers that calculate prices on the county, instead of the zip code. Since many households are located near multiple counties, it’s important to ensure you are being rated correctly. Often, the area that is within a large city limit, will receive the higher prices. If you are in a “township,” you may be incorrectly placed in the wrong rating area.

Statistically, rural areas have fewer claims than urban areas, and the number of vehicle thefts is typically substantially lower. Vandalism and glass breakage claims are also less frequent. Other weather-related comprehensive claims are not impacted, including hurricanes, floods, tornadoes, and snow storms. Epidemics (COVID) result in fewer vehicles driven, and may result in a small reduction offered by insurers.

This is another reason why it’s always smart to shop (we recommend comparing at least three other carriers) if you move from one area to the other. You may find you were very satisfied with your pricing on one side of the state, but faced a large increase after you moved. Sometimes, MD car insurers simply handle more claims in a given area (and it may be just coincidence) and therefore must charge a higher rate. Often, the higher prices are cyclical, and premiums eventually reduce.

Several MD zip codes with the lowest rates include: 21701, 21702, 21703, 21704, 21705, 21709, 21740, 21741, 21742, 21749, 21601, 21620, and 21690.

Are You A Senior?

If you have reached age 65, most companies will reduce premiums by as much as 10%, although often, some (or most) of the discount is applied at age 55. Senior defensive driver courses can also be quite cost-effective since the completion of an authorized and approved course can often result in savings as much as $100 per year. Typically, the cost of the course costs much less, or is free. The rate reduction also continues for multiple years, unless a change in health impacts driving ability, or a loss of driving privileges occurs. AARP also offers cost-saving ideas for Seniors.

A resource guide for aging Seniors is also provided by the Motor Vehicle Administration (MVA). Some of the topics discussed are aging driver education and rehabilitation, older driver statistics, recognizing changes, safe mobility, driver wellness, including health skills and making good choices, and training workshops. A hard-copy can be sent if requested. Training workshops are offered throughout the year at many locations. During pandemics (COVID), online options are offered, and often the cost is discounted.

Vehicle Factory-Installed Items

Although most insurers automatically apply discounts for most factory-installed items, such as air bags, head-injury protective devices, anti-lock brake systems, alarm systems, traction control, and favorable crash-test reports, occasionally, a device or feature is missed. Therefore, once the vehicle is added to the policy, it’s advisable to check your declarations page for any missing items. You can also request to receive a complete list of passenger vehicle discounts that are available from your existing carrier.

We understand it’s not always easy to find the cheapest rates. But a combination of smart shopping and maximizing the best discounts that are available, will help reduce what you pay and put more of your hard-earned money where it belongs. In your own pocket! Providing the VIN will help locate hidden discounts.

An early signing/renewal discount is often applied if you continue your policy a specific number of days before the new policy period begins. The discount is typically 10%. However, as interest rates remain fairly low, many insurers are reducing the discount. However, discounts continue for long-term customers.

The Importance Of Comparisons

It becomes more important to compare prices if you move to or from a different state, where there can be huge differences in premium. And you also may be faced with a situation that a company offered some of the lowest rates before you moved and was now substantially more expensive than all of the other carriers after you changed locations. It is not uncommon to see price differences of 20% or more within a 30-mile radius. Also, age restrictions may impact availability of some discounts. An early retirement may trigger eligibility of new premium reductions.

The minimum liability requirements for your new state may be substantially higher than your previous requirements. Recently, many states (Ohio, for example) have raised their minimum legal limits. If you are planning to move, we can provide the new legal bodily injury and property damage mandates that you will have to have. Or if you just moved to this state, there may be a specific part of your previous policy that is no longer applicable. If you have a personal excess liability umbrella policy, minor changes may have to be made, if you move from one state to another.

Comparing prices from different Maryland companies will help you reduce your costs by at least 10%. Underwriting criteria can be very different and costs in particular areas of the state can change very quickly. We make it easy for you to find, and subsequently view the best choices. We do the research, numbers-crunching, and verifying of the accuracy of prices, so you can be confident that our quotes will save hours of time and aggravation. We also review customer loyalty discounts from major carriers, and show you which companies offer the biggest reductions.

Examples include early renewal and several bundling options.

Summary Of Best Auto Insurance Discounts

Affiliated/organization – Offered through work, school, paid and unpaid memberships, or organization. 15%-20%.

Anti-lock brakes – 5%-10%.

Anti-theft/alarm system – factory-installed and privately-installed systems qualify. 5%-25%

Automatic bill-pay or E-bill – electronic payments from checking or savings accounts. 3%-5%.

Defensive-driving – Completing qualified classes and training (national Safety Council is one resource) provides the discount. 10%-15%.

Good student – Typically, a 3.0 GPA is required (or a “B” average). 10%-15%.

Homeowner – Must own, and not rent a home. 5%-15%.

Hybrid – Hybrid and electric vehicles. 7%-10%. Each year, the cost of these types of vehicles slightly reduces.

Low mileage – Depending on the carrier, less than 7,500 miles driven per year may qualify. Less than 5,000 miles driven will increase the discount. 5%-20%.

Military – Active and retired qualify. 3%-7%.

Multi-car – Two or more vehicles are covered by the same carrier. 5%-20%.

New-car – Purchasing a current model year (must be new) will reduce rate. 5%-10%.

Paid-in-full – Paying full 6-month premium. 2%-10%.

Safe driver (accident-free) – Awarded to drivers that don’t have at-fault accidents. 5%-30%.

Senior – Age qualification varies, but typically between ages 55-65. 5%-10%.

Student away – Depending on the distance to school (without a car), a savings may apply. 10%-20%.

Additional Information:

Since youthful drivers are the most expensive risk to cover, any additional discounts can make a substantial difference. In addition to the traditional “good-student” and “student-away” discounts, teen driver-safety courses are now being accepted by many carriers.

TeenSMART is one of several available driver crash reduction programs that reduce the number of claims, accidents, and injuries. Some of the national carriers that recognize TeenSMART (not in all states) include Allstate, Liberty Mutual, Central, and AAA.