Auto Insurance In Maryland – Factors That Affect Rates

2007-03-08 10:33:40

( Insurance )



Every registered car owner like you must purchase minimum auto insurance in Maryland. If you can afford and want to defend yourself from expenses incurred in car accidents, you may opt to purchase a higher Maryland auto insurance coverage.

Maryland car insurance companies determine your risk level by classifying you in a pool of insured people with similar risk profiles. Premiums of your auto insurance in Maryland depend on your risk classification.

Maryland auto insurance companies categorize you as a high risk driver if you have encountered accidents or traffic violations in the last three years. You will be charged a higher premium if you belong to this group.

Your geographic area, gender, age and marital status will also be considered. If you are located in an area where a number of claims were filed by other policyholders, expect a high premium. If you are a male below twenty-five years old, your premium is higher compared to adult drivers. However, being married will lower your premiums.

If you allowed your premium to lapse in your previous Maryland auto insurance, some insurers charge higher rates. But companies of auto insurance in Maryland will not deny you insurance if the only reason is that you were previously insured with Maryland Auto Insurance Fund.

Your annual mileage, car’s make and model influence your premium too. The higher your mileage, the greater is your risk. And if your car is expensive, Maryland car insurance firms will charge you higher rate.

Some Maryland car insurance companies consider your credit history. Your rate may be higher if you have a poor credit standing. State law, however, protects you from insurers’ application of more than two-fifths surcharge.

Before you buy auto insurance in Maryland, it is wise to understand all these factors that affect your rates. In that way, you know how to lower your insurance cost.


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