Top 5 Ways to Save on Auto Insurance in Baltimore, MD

Sick and tired of not being able to afford to buy car insurance? Your situation is no different than many other Maryland drivers.

You have multiple insurance companies to insure vehicles with, and although it’s nice to have a selection, lots of choices makes it harder to get the best deal.

Finding cheap car insurance in Baltimore is not rocket science. If you have car insurance now, you will most likely be able to reduce your rates substantially using this information. But Maryland consumers must comprehend the methods companies use to determine prices and use this information to your advantage.

How much can you save with these 5 discounts?

Companies offering auto insurance don’t always list every available discount very clearly, so we took the time to find some of the more common and the harder-to-find auto insurance savings.

• Good Student Discount – Getting good grades can save 20 to 25%. This discount can apply up to age 25.
• Discounts for Safe Drivers – Safe drivers can get discounts for up to 45% lower rates than drivers with accidents.
• Drive Less and Save – Fewer annual miles can qualify you for discounted rates on garaged vehicles.
• Own a Home – Simply owning a home may earn you a small savings because maintaining a house shows financial diligence.
• Discount for Swiching Early – Some companies give discounts for buying a policy prior to your current policy expiring. The savings is around 10%.

As a disclaimer on discounts, most discount credits are not given the the whole policy. A few only apply to the price of certain insurance coverages like medical payments or collision. So even though they make it sound like all those discounts means the company will pay you, you’re out of luck.

How much car insurance do I need?

When it comes to choosing the best auto insurance coverage, there isn’t really a perfect coverage plan. Your needs are not the same as everyone else’s and a cookie cutter policy won’t apply. Here are some questions about coverages that can help discover if your insurance needs might need an agent’s assistance.

• Will I lose any money if I cancel my policy before it expires?
• Am I covered when pulling a rental trailer?
• How high should my uninsured/underinsured coverage be in Maryland?
• Do I have any recourse if my insurance company denies a claim?
• Is my vehicle covered by my employer’s policy when using it for work?
• Do I have coverage for damage caused while driving under the influence?
• Does my medical payments coverage pay my health insurance deductible?
• Can I afford low physical damage deductibles?

If you don’t know the answers to these questions but you think they might apply to your situation then you might want to talk to an insurance agent. If you don’t have a local agent, fill out this quick form or go to this page to view a list of companies.

Auto insurance specifics

Learning about specific coverages of your policy helps when choosing which coverages you need at the best deductibles and correct limits. The terms used in a policy can be ambiguous and coverage can change by endorsement. Below you’ll find the usual coverages found on most auto insurance policies.

Collision protection

Collision insurance will pay to fix damage to your vehicle resulting from a collision with another vehicle or an object, but not an animal. You have to pay a deductible then the remaining damage will be paid by your insurance company.

Collision insurance covers claims like colliding with another moving vehicle, backing into a parked car, damaging your car on a curb and crashing into a ditch. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. You can also raise the deductible in order to get cheaper collision rates.

Liability auto insurance

This will cover damages or injuries you inflict on a person or their property in an accident. It protects you against claims from other people. It does not cover damage sustained by your vehicle in an accident.

It consists of three limits, per person bodily injury, per accident bodily injury, and a property damage limit. You might see liability limits of 100/300/100 which stand for $100,000 bodily injury coverage, a total of $300,000 of bodily injury coverage per accident, and a total limit of $100,000 for damage to vehicles and property.

Liability coverage protects against things such as funeral expenses, repair costs for stationary objects and court costs. The amount of liability coverage you purchase is up to you, but buy as much as you can afford. Maryland state law requires minimum liability limits of 30,000/60,000/15,000 but it’s recommended drivers buy more liability than the minimum.

UM/UIM Coverage

Your UM/UIM coverage provides protection when the “other guys” either have no liability insurance or not enough. This coverage pays for injuries sustained by your vehicle’s occupants and also any damage incurred to your vehicle.

Due to the fact that many Maryland drivers carry very low liability coverage limits (30/60/15), it doesn’t take a major accident to exceed their coverage limits. For this reason, having high UM/UIM coverages is very important.

Comprehensive or Other Than Collision

This coverage will pay to fix damage that is not covered by collision coverage. You need to pay your deductible first then your comprehensive coverage will pay.

Comprehensive coverage protects against things like rock chips in glass, vandalism, fire damage and hitting a deer. The most your auto insurance company will pay is the cash value of the vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.

Medical costs insurance

Coverage for medical payments and/or PIP provide coverage for bills like EMT expenses, pain medications, doctor visits and hospital visits. They are often used in conjunction with a health insurance plan or if you are not covered by health insurance. They cover not only the driver but also the vehicle occupants and will also cover getting struck while a pedestrian. PIP is only offered in select states and gives slightly broader coverage than med pay

Online resources for education

More tips and info about auto insurance is located at the Maryland Insurance Administration website. Consumers can find out industry alerts, read industry bulletins, report car insurance fraud, and find a variety of consumer forms.

Do the work, save more money

As you prepare to switch companies, never buy less coverage just to save a little money. In many cases, an accident victim reduced uninsured motorist or liability limits to discover at claim time that it was a big mistake. The ultimate goal is to purchase a proper amount of coverage for the lowest price while not skimping on critical coverages.

Low-cost auto insurance can be sourced from both online companies and also from your neighborhood Baltimore insurance agents, and you should be comparing both so you have a total pricing picture. Some insurance providers may not provide online quoting and most of the time these small, regional companies sell through independent agents.