13 Myths About Maryland Car Insurance Rate Increase

Introduction:

You are aware that car insurance rates are on the increasing trend for the last few years and it keeps
the same trend in 2018 too due to costly car accidents and disastrous storms. It is not a good news even for great drivers. Let us see how Maryland car insurance is increasing and for what reasons.

Maryland Car Insurance Increase:

Like any business, insurance industry need to get increased income than expenses in order to stay in the competition. Insurance companies are making money in the form of premiums paid by the customers and spend money on paying damages to the victims of accidents and on repairing or replacing the cars and car parts that are damaged in accidents.


When there is a disproportionate income that is when revenue is less and the expense is more, naturally the insurance companies will increase the insurance premium rates and that is the reason for Maryland car insurance rate increase. When the combined loss ratio is above 100%, the insurance providers tend to increase the premium rates.

Why the Increase?

Even though the catastrophic weather drove the insurance companies to raise the insurance premium rates, many consumers feel that Maryland car insurance rate increase is not fair. There is a complaint that the insurance providers are using different and complicated formulae to determine the car insurance premium rates and sometimes some factors are kept as hidden agenda.

Consumer advocates feel that the insurers are using Big Data abundantly without putting the facts to scrutiny from the State insurance regulators. According to a review, the car insurance rates have increased by nearly 20% since 2011.

The insurance companies do not lower the premiums appreciably even for the drivers who participate in safe driving programs. Likewise, installation of safety features and anti-theft devices in your car do not attract sizeable cut in the premium rates.

Maryland Minimum Car Insurance Coverages:

As per Maryland law, the drivers should buy $30,000 for bodily injury per person and $60,000 per accident as minimum liability coverage. The State also mandates uninsured and underinsured motorist coverage with the same limits as required for liability coverages and $2500 towards personal injury protection. This level is higher when compared to some States of US and hence Maryland car insurance rate increase.


It is always best to buy car insurance coverages that is well above the minimum liability coverages and this is essential due to increase in car accidents and soaring medical costs and repairing charges of damaged cars.

Insurers of Maryland also feel that the people with poor credit scores file more claims. It is an irony that perfect drivers with less than perfect credit scores are made to pay more premiums than those with high credit scores even for basic liability insurance.

A ticket for texting and driving could also cause about 15% increase in respect of your car insurance premium.

Drivers in urban areas pay higher premiums due to heavy traffic congestion than those drivers operating in rural areas. A study says that the residents of Baltimore pay around $1813.23 per year whereas the drivers of Williamsport pay only $1150.54. It seems that there is a wide range of variations in the Maryland car insurance premium rates.

Maryland State car insurance premium stands at $1368.32 per year on an average. As per Maryland car insurance rate increase by States is concerned, the annual average car insurance rates of the States such as Michigan, Louisiana, Connecticut, Rhode Island, Florida, DC, California and Delaware are reported as $2394, $1921, $1897, $1848, $1840, $1696, $1673 and $1526 respectively as in the year 2017. The lowest car insurance rate is reported in the State of Maine, where it is quoted as $864 per year.


Conclusion:

In general, car insurance premium rates are on the increasing trend in almost all States and Maryland is no exception.

Related Posts you may like