Cheap Car Insurance in MD

All information you may need about car insurance in the state of Maryland

It is natural to shop for an car insurance quote that is cheap and provides the desired cover. Shopping for a cheap car insurance in MD insurance quotes results in substantial savings in the long term while getting the desired cover. To continuously save on car insurance by routinely getting cheap quotes, it is advisable to continuously shop for the cheapest quote upon every insurance renewal. This is because while a company may offer cheap quotes in a present year, it is not necessarily that such quotes remain constant. They may be cheap this year and expensive the next year. So shopping for cheap insurance at every renewal is highly advised.

Maryland State, just like other states, has a well-defined system. In case of an accident, one of the parties involved has to be at fault for the cause of the accident. In that case, the party involved, and who is at fault, and his/her insurance company are held responsible for payment of any resultant damages, which can be death to either of the drivers or occupants, injuries sustained and car body damage. For these, Maryland car insurance quotes differ and this necessitates the need to shop for the cheapest.

For most consumers, purchasing a car insurance policy suitable for their needs is a daunting and often a confusing task. There are numerous insurance companies who offer many attractively packaged insurance programs and leave the consumers confused about which ones to pick. Therefore, it is important that while shopping for a cheap car insurance quote in Maryland, one has to be aware of the minimum quotes set by Maryland State law. Otherwise, one will only come to realize the inadequacy of his/her cover when he/she is involved in accident. So, first of all, you need to learn the car insurance laws of the state of Maryland.

Maryland Car Insurance Laws

Maryland state law all drivers must have 3 different types of automobile insurance. Each driver needs to have liability insurance, uninsured motorist coverage and underinsured motorist coverage (UM/UIM) along with personal injury protection (PIP) insurance policy. Maryland is a no-fault liability state and the car insurance customer is required to pay a mandatory PIP (Personal Injury Protection) minimum coverage on the premium.

The Maryland Insurance Administration (MIA) is the regulatory department that deals with car insurance Issues in the state of Maryland. A customer can go to the website of the MIA to get details of the mandated minimum coverage required, and the rights, and the remedies that the customer has under the policy. The laws in the State of Maryland enforced by the Maryland Insurance Administration, oversee that the premiums charged are not excessive, inadequate, or unfairly discriminatory.

Minimum car insurance requirement for Maryland drivers is:

  • Bodily Injury Liability Coverage: $30,000 per person / $60,000 per accident minimum coverage for bodily injury for 3rd parties injured in accidents which have been determined to be the insured driver's fault
  • Property Damage Liability Coverage: $15,000 coverage for property damage for 3rd party properties which have been damaged in accidents which have been determined to be the insured driver's fault
  • Uninsured/Underinsured Motorist Bodily Injury Coverage: $30,000 per person / $60,000 per accident minimum limit for an uninsured/underinsured motorist bodily injury
  • Uninsured/Underinsured Motorist Property Damage Coverage: $15,000 minimum limit for uninsured/underinsured motorist property damage
  • Personal Injury Protection: $2,500 minimum limit for Personal Injury Protection (PIP) coverage

If you are involved in an accident where you have been cited as being 'at fault', you are open to the injured party suing you for bodily injury or death, asking for funeral expenses to be covered. In Maryland, the statute of limitations is 3 years for personal injury, including car accidents. The PIP will cover all involved in the accident, driver, passengers, and pedestrians. Coverage provided with such a policy in MD includes medical expenses, lost wages from the job, child care costs, and when necessary funeral costs.

Another advantage of having PIP is that if you are having difficulty resolving your claim with the other side's insurance company, this portion of Maryland car insurance can aid you by providing the resources to hire a lawyer to resolve your claim.

As you can see, there are good reasons to consider improving the protection of your peace of mind and personal assets with a PIP rider on your Maryland car insurance policy.

You will find that buying the legally required bare minimum is woefully inadequate when an accident occurs, and you need to pay for medical attention and vehicle repair. Paying a higher premium for higher bodily injury and property damage can take a whole weight off of your shoulders at the time of an accident.

Here are a few things that you should know when shopping for your MD car insurance policy:

  1. You can limit your PIP cover in the State of Maryland if your health insurance covers accident-related medical costs.
  2. Physical damage coverage is required by finance companies if your car is being financed. Some finance companies will also require collision insurance coverage.
  3. Comprehensive insurance coverage will pay for damages to the car by natural calamities and vandalism.
  4. If your car is old you can waive collision and comprehensive insurance covers.
  5. Ancillary coverage options offered under the policy like towing and highway repairs may unnecessarily increase the premium.

Penalties For Drivers Without Insurance

Maryland Car Insurance Policies are expected to cover the legally mandated minimum coverage by the laws of the State of Maryland. Driving a car without insurance coverage is against the laws of Maryland and a driver must have proof of a Maryland insurance certification FR-19.

Insurance companies are required to inform the Maryland Insurance Administration of all car insurance policies, issued, renewed, lapsed or canceled in the State of Maryland.

If you do not buy car insurance and drive a car the registration of the car is revoked the license plates are liable to be returned, and a jail term and/or a hefty fine may be imposed. If you are a high-risk driver and your application is turned down by all car insurance companies you can apply for insurance with higher premium costs to the Maryland Automobile Insurance Fund (MAIF) for insurance.

Maryland Car Insurance Rates

Maryland car insurance rates are higher than many states because of one of the reasons of the State’s proximity to Washington DC. Washington DC plays a large role in determining the cost of MD’s car insurance rates.

Average car insurance cost in Maryland:

Description Price
Maryland Minimum Car Insurance Coverage $871 - $1,018
Maryland Minimum Full Coverage Car Insurance $1,580 - $1,752
Maryland Minimum Car Insurance Coverage for Young Drivers $1,591 - $1,798
Maryland Minimum Full Coverage Car Insurance for Young Drivers $2,347 - $2,569
Average car insurance in Maryland per month $72 - $214

There are some important risk factors that Car Insurance Companies in Maryland take into account to specify the premiums – these factors are essential because they have an impact on the insurers’ expected future cost:

  • features of the driver: gender, age, marital status, driving history
  • characteristics of the car: retail cost, performance capability, is it a safer or a sports car?
  • use of the vehicle: expected distance has driven per year – it matters that you use it for driving to and from work every day or just for shopping 3 times a week
  • coverage of the insurance

Important factors influencing car insurance rates in Maryland:

City Speed Limits 30 miles per hour
Freeway Speed Limits 70 mph
Blood Alcohol Limits BAC is .08% . If a driver is younger than 21 max BAC is .02%
Open Container Law Both the driver and passenger of vehicles are prohibited from possessing open alcohol.
Cell Phones Laws Handheld Phones Banned While driving in Maryland. If you crash while talking or messaging, you can get up to 3 years in prison and up to $ 5,000 in fines.
License Suspension on DUI There is no suspension of driving privileges on account of a first offense in sdministrative penalties.
License Suspension on DWI On a first offense for DWI drivers license is suspended for 60 days

Car Insurance Companies in Maryland

There are 800 Car Insurance Companies licensed in the State of Maryland. The working of Car Insurance Companies is regulated by the Maryland Insurance Administration (MIA). You can check if the car insurance company you have chosen is approved by the MIA. The procedure of preferring complaints to the MIA and filing claims in the event of an accident to the insurance company is also stated in detail on the website.

Financial Strength Ratings

Another smart thing to do when performing research on your insurance company or prospective insurance company is to check insurance rating services like A.M. Best which can help you gauge the solvency and customer service record of your chosen MD car insurance company.

Maryland Car Insurance Companies: Public vs. Mutual

Most large insurance companies have offices in the State of Maryland. Nationwide, Progressive, GEICO and Allstate are few of the more well-known car insurance companies approved in the state of Maryland.

Also, there are many mutual insurance companies. State Farm Mutual which is the biggest car insurance operator in the State of Maryland and Liberty Mutual are the most popular mutual Insurance companies. Mutual Insurance companies treat policyholders as shareholders and give back a share of the profits as a dividend.

Car Insurance Quotes in Maryland

Average car insurance quotes for Maryland car insurance companies

Rank Car Insurance Company Name Price
1 GEICO $908
2 USAA $932
3 State Farm $1,048
4 Amica $1,067
5 Nationwide $1,203
6 MetLife $1,317
7 Liberty Mutual $1,345
8 Allstate $1,535
9 AIG $1,659
10 Progressive $1,876

How To Find The Cheapest Car Insurance in MD

Car insurance is one of the major recurring expenses for all car owners. Depending on the type of car you have, and the level of coverage you purchase, you might need to send anywhere from $800 to several thousands of dollars. Therefore, needless to say, while you want the most appropriate coverage for yourself, you would also like the most economical purchase for yourself as well.

The car insurance market right now has become much looser to the budget of the buyers because of the tight competition between the companies that offer it. The prices are now lower and the process faster than it has ever been. Some buyers who end up paying more than what they are supposed to.

Before you buy car insurance, here are some tips on how to reduce car insurance prices from different companies. If you follow these tips, there is a great possibility that you would end up paying less than those other car insurance owners.

Never be afraid to ask for discounts – This works especially if you have a lot of cars. Some of the best car insurance companies can give you a discount for multiple car insurance and that could help you save a lot of money. There are a lot of discounts out there that you can take advantage of, but you would need to ask for the first since the companies would never offer them proactively.

Check on the car insurance coverage rate that your state requires – Different states have different car insurance requirements for motorists that are registered in their area. To avoid getting a car insurance policy that is higher than the requirement, it would be wise for you to ask first before buying a car insurance policy.

Buy low profile cars - it is pretty obvious that a state of the art sports car is far more expensive to insure as compared to a regular car. This is due to the expensive parts and repair costs. Buying an average car make you save money on car insurance and can also ensure your safety on the road.

Buy safety accessories for your car – The best vehicle insurance companies encourage motorists to buy anti-collision equipment and safety accessories for your car. They are willing to give you a considerable mark down on your car insurance quote if you do this since it makes you less likely to get into a car accident. This is not just an investment that could lower down your, it could also give you more confidence whenever you hit the road.

Shop around - While looking for cheap and cost-effective car insurance policies, it is recommended that you carry out your search with patience. The car insurance market in Maryland is competitive and there are numerous insurance providers who offer various products. Therefore, take advantage of this competition and apply for quotations with at least 4 to 5 different insurance providers. Then compare the costs as well as the benefits for each of these quotations and select the one which suits you the most. Remember to negotiate well before your insurance providers start underwriting your policy.

Lessen your mileage – The distance that you cover with your car is also something that can affect the quote that you get from car insurance companies. If you want the quotes to get affordable car insurance, it would be best to make adjustments to the distance that you cover each day. The whole idea is that the longer the distance you cover on the road, the greater the chances that you could get into a car accident.

Raise your deductibles - This is the easiest way to get the affordable car insurance quotes. All that you need to do is to increase your deductible from $500 to $1000 each month and the car insurance company would be happy to decrease about 15 to 30 percent on the premium that you would have to pay each month.

Clean up your driving records – One thing that can really drive up the car insurance quotes that you get is a bad driving record. A bad driving record screams out to the car insurance provider that you are a threat to the car and to other motorists on the road. And since you are likely to make them lose money in the future, they will give you a high rate on the car insurance that you would want to purchase.

When you took all the steps given above, you are most likely to see a dramatic decrease in the car insurance quotes that will be offered to you by various cheap car insurance companies in your area. But if your aim is to bring it lowers, then you might also want to check out the car insurance discounts that car insurance companies can give their buyers. There is a great chance that you qualify for one, and that could give more savings that you have imagined.

Best Car Insurance Discounts in MD

Safety Equipment Discount – This is by far the easiest discount to qualify for. You need to do is a buy some safety accessories for your car and get a discount on the car insurance premium that you are going to buy. Some car insurance companies don’t give this discount, so it would be wise for you to choose one that will. Trying to get this discount doesn’t just offer you the possibility of saving some cash, but could also make you safer on the road.

Good Driver Discount – If you are a good driver, meaning you have a spotless driving history, you might just qualify for this discount. A lot of the cheapest car insurance companies can give you this discount since you are less likely to make them lose some money by getting into some trouble on the road. This is the time when your obedience to the traffic rules and patience on the road pays off.

Good Student Discount – This discount revolves around the idea that smart people are less likely to get into accidents. If you are still in school with impressive grades, and you want to buy car insurance for your car, you can get a great deal. Only a few car insurance policy companies give this discount, so it would be better if you ask first. Check out college student discounts here.

Multiple Car Discount – Having multiple cars could give you a great discount when buying car insurance. Most of the car insurance companies give its clients multiple car insurance discounts if you are going to do business with them to get all the cars that you have covered. Imagine the savings that you get, if you get a discount on the rate that you would have to pay for all the cars that you have.

Military Discount – A person who has served or is serving in the military can take advantage of this discount. The beauty of this discount is that the immediate family of the person can also get the discounts for inexpensive car insurance and that would be a great load off of the household’s budget.

Bundling Discount – There are some insurance companies that can take care of your home, personal, and car insurance coverage’s all at the same time. If you choose an insurance company that has this kind of service, there is a great chance that you could get a discount if you get all the insurance policy that you need from them. And we are talking about big discounts here.

JOHN M. DAVIS