Why are car insurance rates up in Maryland?

CBS News

2 days ago

Why are car insurance rates up in Maryland?
Why are car insurance rates up in Maryland?
Why are car insurance rates up in Maryland?
One thing everyone is noticing these days is rising costs, and that includes your car insurance.
Viewers have asked WJZ why their auto insurance rates are increasing in Maryland.
WJZ Anchor Rick Ritter tracked down the answer for this segment of Question Everything.
Why is car insurance so expensive?
Rick Ritter sat down with Marie Grant, who is Maryland's insurance commissioner.
Marie Grant: "Typically in urban environments, we do see higher rates of auto insurance based on experience on what happens to a car in a city.
Grant: "What we're seeing here in Maryland and what consumers are feeling are, unfortunately, national trends that consumers in other states are feeling, as well."
Data released this year from Insurify shows car insurance costs surged nationally by 15% in 2024. Maryland drivers pay the most for car insurance, according to the website.
On average, Marylanders are paying more than $4,000 a year, which is a 53% increase from 2023.
Grant: "Maryland, historically, has been in the top quarter of states for auto insurance rates, and that's due in part to the nature of our state."
"We tend to drive a lot, with longer commuting distances and a lot of congestion on roads. With pretty heavy traffic and accident rates higher than other states, it all contributes."
While congestion and traffic-related incidents play a role, high repair costs are also to blame. AAA A found that today's advanced technology in cars can cost twice as much to repair, and now the threat of tariffs could complicate things even more.
Grant: "During the pandemic, costs went down, folks weren't driving as much, and there weren't as many accidents. As Marylanders got back on the road, as well as inflation, the cost of cars then increased."
Rick Ritter: "With so much talk about the escalating trade war and the president's tariffs, will it help contribute to rising car insurance rates?"
Grant: "Unfortunately, the answer is yes. We haven't seen evidence of that with current rate filings, but if you asked me a month ago without tariffs on the horizon, I would've said trends are looking positive."
Climate and crime can be contributing factors to higher costs of insurance, as well.
Maryland has seen stolen vehicle claims surge over the last few years, according to the National Insurance Crime Bureau.
If you live in an area with more frequent severe weather, like flooding or wildfires, it can impact your premiums, too.
What can Marylanders do to save?
Grant says to shop around for several insurers. Most think two or three, but five to 10 is what's recommended.
Search for discounts, like safety features or bundling policies, which can help keep costs down.
Consider a telematics program that monitors how safe you're driving. Then can bring down rates for you, as well.
When in doubt, the insurance commissioner's office lines are always open. The office receives dozens of calls daily from Marylanders inquiring about their rates.
"I love hearing from Marylanders. Consumers should definitely reach out to us," Grant said. "Fresh eyes never hurt, so we do want to make sure we are asking tough questions of our insurers to make sure they are putting their best foot forward, and that's what we do."
Car insurance adds to a budget
From the escalating trade war to inflation, it feels like the cost of everything is going up these days.
"It's horrible, from car insurance to groceries," a Baltimore resident said.
"Everything feels so expensive," said Yaniv Ezra, an Uber driver and student in the city. "I'm a DoorDash and Uber Eats driver, and you can see that barely anyone is buying anything."
The rising prices for utilities, food, and gas, mixed in with skyrocketing car insurance, make things tough.
"It's very high," Ezra said. "I'm paying $200 a month now just because I moved to the city."