If you discuss auto insurance rates with people who live outside Maryland or look up costs in other US states, you will probably experience sticker shock when comparing the amounts. A November 26, 2020 article from Yahoo! Finance confirms that that Maryland ranks #3 on the list of most expensive states for car insurance in 2020: Residents pay an average of $2,090 annually for the various types of coverage that are required by law or recommended for other reasons. The article publishers go on to detail the reasons why insurance costs more in some states, and the underlying factors are intriguing.
However, while it may be frustrating to pay higher insurance rates, you will certainly benefit from the different types of coverage if you were injured in an accident. Your Baltimore County auto accident attorney can assist with essential legal tasks, but you might be interested to know why Maryland drivers pay more.
Factors That Impact Insurance Premiums
Insurance companies set their rates based upon the risk of accidents in the geographic region where a policyholder resides; the higher the potential for an accident and having to pay out, the higher the premiums for the insured. In Maryland, rates are the product of:
- Required Insurance Coverage: Motorists must carry bodily injury and property damage, like other US states. However, they are also required to carry additional coverage that would typically be an add-on, including Personal Injury Protection (PIP).
- Uninsured and Underinsured Motorists: Maryland drivers are also required to carry UM/UIM coverage with their auto insurance policy. Another factor that leads to a rate increase. Knowing that 12.4 percent of motorists in the state do not have policies or do not carry the mandatory minimum. UM/UIM insurance offers peace of mind.
- Maryland Accident Track Record: Possibly the most impactful reason for high auto insurance rates in Maryland is a scary one. The state ranks number three when it comes to the most motor vehicle crashes in the US. An insurance company is protecting its financial interests in determining premiums for motorists.
Pursuing the Responsible Driver for Auto Crash Injuries
While auto insurance premiums are important for your own bottom line, insurance regulations and requirements also dictate your legal remedies if you were injured in an accident. Maryland is an at-fault or tort state for purposes of auto collisions. So your first step in the process is filing a claim with the negligent driver’s insurance company. Your claim would likely cover all losses related to your injuries. As well as amounts for property damage to your vehicle.
Contact a Baltimore County, MD Car Accident Attorney About Your Rights
This brief overview of how to pursue an at-fault driver may be useful. There are many other details involved when you are filing an insurance claim for auto crash injuries. You can be sure that the insurer is backed by an experienced team of lawyers. It is crucial to even the playing field by retaining your own legal counsel. To learn how we can help, please contact attorney Michael A. Freedman to schedule a free consultation.