Maryland Auto Insurance
In Maryland, auto insurance buyers need to be aware that they are required to carry a certain level of insurance coverage. State legislators in Maryland set this level of auto insurance for all licensed drivers. Since minimum coverage levels vary from state to state, if you have recently moved either to or from Maryland, you should do some investigating to make sure you have at least the minimum level of auto insurance coverage for the area where you live.
Maryland does not have a no-fault insurance plan in place; instead this is a tort state.
The word tort means "wrong," and if you cause an accident, you and your insurance company will be expected to pay for the injured person's medical expenses and damage to his or her property.
If you don't have sufficient insurance in place to pay for these costs, the injured person will be looking to you to make up the difference. For this reason, you need to consider the level of coverage you decide to carry on your vehicle very carefully.
Maryland Auto Insurance: Minimum Levels Of Coverage
Liability insurance pays for other people's injuries and damage to their property if you are involved in an accident and you are found to be at fault. Under state law, the minimum amount of coverage you need to have for a single person injured in an accident is $20,000, with a cap of $40,000 for all injuries stemming from the same accident. (This $40,000 stays in force no matter how many people are injured.)
You will also need to have a minimum of $15,000 in property damage insurance. This coverage pays for damage to the other driver's vehicle, as well any damage caused to his or her property. In this case, "property" refers to such things as a sign post, mailbox, a building, or a shed.
In Maryland, you are also legally required to have a minimum of $20,000 in Uninsured/Underinsured Motorist coverage for an individual and $40,000 for all injuries sustained in a single accident. This type of insurance pays for medical expenses and lost wages if you are injured in an accident caused by a driver who either has no insurance or who does not have adequate insurance to pay these costs. In the case of a person who doesn't have enough insurance, it will top up the available coverage (up to the policy limit you choose).
Your property will also be protected if it is damaged by an uninsured driver. You are also required to carry at least $15,000 in Uninsured Motorist Property Damage insurance.
This State has also put legislation in effect so that all drivers must have at least $2,500 in Personal Injury Protection (PIP) in place. PIP pays for medical expenses that the insurance company considers "reasonable and necessary" for yourself and any passengers in your vehicle following an accident.
Maryland Auto Insurance: Average Costs For Coverage
One way you can try to figure out whether you are getting a good price for your MD car insurance coverage is to consider whether it is above or below the average rate other drivers in your state are being charged for their coverage.
In 2003, the average car insurance buyer in the State was paying $978 for coverage.
When you compare this figure to the national average of the time ($914), it's clear that consumers in Maryland need to shop carefully for coverage if they want to get good rates.
Maryland Car Insurance: How To Shop For Coverage
When you are looking for Maryland car insurance, you need to be aware that there are several factors that the insurance company will take into consideration when deciding how high a risk you present to insure. The lower the risk the company decides you possess, the better insurance rates you can get. When you apply for coverage, the company will look at the following:
- Your Driving Record
- Your Age
- Your Gender
- Where You Live
- Your Credit History
- The Make and Model of the Car You Want to Insure
- How Much Coverage You Have Requested
- How Many Miles You Drive Over the Course of a Year
Some of the items on the list, you have no control over. While you can't change your driving history, you can try to keep a clean record going forward and try to get a better rate in the future. When you are shopping for a new car, do some research to find out which ones are more expensive to insure. Based on this information, you may make a different choice about the one you end up buying.
How To Find Cheap Maryland Auto Insurance
Here are some others factors that impact your Maryland car insurance premium:
- If you don't need to drive your car back and forth to work every day, you may be able to get a break on your coverage by taking public transportation. Most people are underinsured, as opposed to having too much coverage, but do keep in mind that your premiums will increase as your policy limits go up.
- Shopping around to compare rates and coverage options is a good idea. Even if you are currently happy with your current provider, you may be able to get a better deal on your insurance coverage elsewhere. Insurance companies understand that they need to stay competitive if they want to keep their customers happy and looking for auto insurance online is something that can be done quickly and easily.
- Get quotes from several companies before your existing policy expires and compare the amount and type of coverage you can get for the rate. Find out what would happen to your annual premium if you were to raise the amount of your deductible. This is a good way to save on your premium payments, but you do need to make sure that you will be able to pay the deductible yourself if an accident occurs.
- Do make a point of asking your agent or your insurance company about possible discounts for such things as a clean driving record, multiple policies with the same carrier, and others. You may qualify for a discount and not even realize it.
Find Cheap Maryland Car Insurance Quotes Now!
You can start looking for the best rates on Maryland auto insurance right now! The free MD car insurance quote tool at the top of this page is here to help you. All you need to do is click on it!