Automotive insurance coverage premiums are surging throughout america, with Maryland now holding the excellence of being the most costly state for full protection automotive insurance coverage in 2024, in accordance with Insurify. The state’s drivers face a mean annual premium of $3,400, a staggering 43% enhance from the earlier 12 months. This sharp rise has outpaced the nationwide common and positioned Maryland on the forefront of the nation’s automotive insurance coverage disaster.
A number of elements contribute to Maryland’s excessive insurance coverage prices. Some of the vital is the latest legislative change that got here into impact on July 1, 2024, requiring auto insurers to supply enhanced uninsured motorist protection (EUIM). This new legislation permits policyholders to “stack” the at-fault driver’s legal responsibility insurance coverage with their private, uninsured, or underinsured motorist protection. Whereas this modification presents higher safety for drivers, it additionally will increase the monetary accountability of insurers, who’ve adjusted their charges accordingly.
Along with legislative modifications, Maryland has skilled a notable rise in visitors fatalities, which additional drives up insurance coverage premiums. In 2023, the state noticed an 8.2% enhance in motorcar crash deaths, a stark distinction to the nationwide development, which noticed a 3.6% decline. The upper threat of accidents has prompted insurers to hike charges to cowl the anticipated claims prices.
Maryland’s excessive insurance coverage charges are additionally influenced by broader traits affecting the automotive insurance coverage business nationwide. Components akin to elevated automobile thefts, visitors congestion, and the potential for weather-related damages contribute to the general threat profile for insurers working within the state. Maryland’s densely populated city areas enhance the probability of accidents and claims, additional driving up premiums.
As Maryland residents grapple with these rising prices, the state of affairs underscores the complicated net of things influencing automotive insurance coverage premiums. From legislative modifications to elevated accident charges, the state’s drivers face a difficult panorama the place larger prices appear inevitable.
And for comparability, the bottom premiums are in New Hampshire at solely $1,000 for an annual price.
