The cost of auto insurance premiums can vary greatly, and often the state you live in can be a major factor. If you’re moving to Maryland, there’s some slightly bad news: the Old Line State ranks as one of the most expensive for auto insurance.
If possible, try to carpool with someone else or use public transportation. The fact you live in Maryland means you could be commuting to Washington, D.C. or Baltimore for work. If you do, try to use public transportation. Washington, D.C. has the Washington Metropolitan Area Transit Authority, and there’s also the Maryland Transit Administration. At least one report shows that Washington, D.C. has the highest car insurance premium average in the nation. You may not be able to live without a car at all, but you can at least seek to use the public transportation to actually commute into the city for work. Other than that, try to use some of the following tips to reduce your Maryland auto insurance rate.
It may not be the most popular option, but owning a cheaper and used vehicle will reduce your Maryland auto insurance rate and reduce the chance of someone stealing it. You should also seek to use the same insurance company to purchase your homeowners’ insurance or renters insurance. Grouping your insurance rates together can come with at least a small discount. This also goes for covering more than one vehicle with your insurance company.
You can also reduce costs by raising the deductible — try really hard not to be involved in an accident — and by maintaining a safe driving record. Try to keep a good credit score, maintain good grades if you’re a student, and ask your agent if you can get a lower rate because of your responsible background. You should also try to find a home close to work — the less you drive, the less of a risk you are for the insurance company and the better your rate. Meanwhile, you’ll also save on gas. Maryland ranks right in the middle as far as gas tax at 23.5 cents per gallon, but either way, gas is more expensive than many of us would like. A Maryland auto insurance rate may not rank as high as Washington, D.C., but it does rank No. 14 in at least one study, with an annual average premium of $1,036.70. So either way, you’ll want to seek ways to reduce your own premium.
Auto Insurance Rate Laws
Maryland is an “add-on” no-fault state, which means the insurance company isn’t concerned with finding a culprit for the wreck. Your insurance company will foot the bill for you, while the other guy’s insurance company will foot his bill. This won’t necessarily affect your Maryland auto insurance rate either way. In a typical “no-fault state” this drastically reduces your chances of being sued by the other driver for emotional problems or suffering caused by the wreck if you’re at fault. In Maryland, the other driver can sue for pain and suffering damages.
In Maryland, you are required to purchase personal injury protection, or PIP. This will help pay for medical bills following an accident. Liability coverage pays for the damage to the other vehicle and passengers.
Maryland minimum requirements are 20/40/10, which means you must purchase at least a $20,000 coverage for personal injury protection, $40,000 for total bodily injury liability and $10,000 for property damage liability. If you have a hard time finding car insurance in the Old Line State, you may be eligible to receive insurance through the Maryland Automobile Insurance Fund. The MAIF was created by the state legislature in 1972 to help provide liability auto insurance for residents who aren’t able to obtain it elsewhere.
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Maryland Auto Insurance Rate
January 20, 2013January 20, 2013 0 Comments