Maryland Auto Insurance

The state of Maryland is a Tort state.  This means that if the state declares an individual as the cause of an accident, the named person will be required to pay all the damages which result from the accident they caused.  This will include all medical bills and vehicle repairs.  For this reason, insurance companies may encourage you to purchase more than the minimum auto liability insurance required by the state of Maryland.  If a car is financed, you will most likely be required to carry comprehensive and collision coverage on the vehicle.  Failure to do so in the state of Maryland can be considered as a default of insurance coverage on your part.

Insurance companies in Maryland do not have to cover members of your household if they are not listed on the policy.  These exclusions are legal.  Even though you do not have to list everyone on the policy, the company may request it.  If you do not comply with the company’s request, they can deny the claims on any persons not included on the policy.  Any exclusion will be listed in the exclusion section of your policy along with all the conditions which will allow the insurance company to deny a claim.

In the state of Maryland, the insurance company is allowed to check out your personal credit history when offering you insurance and setting your premium rates.  They also use other criteria such as your driving record, age, and the area where you live.  Maintaining a good driving record and paying your bills on time may reduce your premiums.

The average insurance premium in Maryland was about $949.00 as of 2006.  Maryland was ranked as having the 12th highest premium average in the United States.  There are 46 state approved insurance companies doing business in the state of Maryland.  The following companies may sell auto insurance in Maryland:  Agency Insurance Company of Maryland, AIG National Insurance Company, AIU Insurance Company, Allstate Property and Casualty, Amica Mutual Insurance Company, Bankers Independent Insurance, Brethren Mutual Insurance, Dairyland Insurance Company, Donegal Mutual Insurance Group, Encompass Home/Auto Insurance Company, Erie Insurance Company, Erie Insurance Exchange, Esurance Insurance Company, Farmers New Century Insurance Company, Federal Insurance Company, Fireman’s Fund Insurance Company, GEICO, GEICO Casualty Company, GEICO Indemnity Company, Harleysville Mutual Insurance Company, IDS Property Casualty Insurance Company, Interstate Auto Insurance Company Incorporated, Liberty Mutual Fire Insurance Company, Maryland Automobile Insurance Fund, Montgomery Mutual Insurance Company, National General Assurance Company, Nationwide General Insurance Company, Ohio Casualty Insurance Company, PA National Mutual Casualty Insurance Company, Peninsula Insurance, Progressive Direct, Progressive Drive, Safeco Insurance Company of America, Selective Insurance Company of South Carolina, Sentinal Insurance Company, State Auto Property and Casualty, State Farm Fire and Casualty Company, State Farm Mutual Automobile Insurance Company, Teachers Insurance Company, Traveler’s Home and Marine Insurance Company, United Farm Family Insurance Company, United Services Automobile Association, Unitrin Auto and Home Incorporated Company, Unitrin Direct Insurance Company, USAA Casualty Insurance Company, and West American Insurance Company.

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums.  Furthermore, a clean driving record reduces your risk of an accident.

It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will be higher on vehicles which are a high priority for thieves.  The cars that made the top 10 stolen vehicles in Maryland are:

1. 1994 Dodge Caravan
2. 1994 Honda Accord
3. 1991 Toyota Camry
4. 1996 Ford Taurus
5. 2000 Honda Civic
6. 2000 dodge Intrepid
7. 1996 Jeep Cherokee/Grand Cherokee
8. 1994 Plymouth Voyager
9. 1997 Ford Crown Victoria
10. 2001 Dodge Stratus

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  Parking your car in a garage or secured area is another way to reduce your premiums.  Where you live will affect your insurance rates which can be affected by weather extremes, high theft risk, and high traffic patterns.  Don’t forget to maintain a good credit record as the insurance company looks at this to determine how likely you are to pay your premiums on time.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.