If you are a driver in Maryland (or anywhere for that matter), you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Maryland car insurance customers below. Understanding these items can not only save you a lot of time and money on your Maryland auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your Maryland car insurance company determines your car's value after it has been declared a "total loss."
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Maryland, such as such as Baltimore, Annapolis and Frederick, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Maryland.
2. When switching car insurance companies, you must cancel your insurance policy first.
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!
The safest thing to do when switching car insurance companies is to call your company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back.
3. Adding a teen to your car insurance policy
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received a license.
For your Maryland teen to begin the process of receiving their license, they must be at least 15 years and 9 months and follow these steps:
- Study the Maryland Driver's Handbook
- Take the written driving and visual exam
- Receive the Type One Permit
- Enroll in a driver education course to fulfill 30 hours of classroom and 6 hours in the car
- Log 60 hours of driving time with a parent or guardian
- Pass the Skills Driving Test, present a certificate of completion for the driver education course and the 60 hour driving log to receive a Provisional License
- Receive your Unobstructed License when you are at least 17 years and 9 months of age and have held the Provisional License for a minimum of 18 months
This process is for first time drivers who are at least 15 years and 9 months. If a permit applicant has already had a driver's license, they will apply for the Type Two Permit. For either permit, be sure to supply a birth certificate and a form signed by the teen driver's parent or guardian when taking the first handbook and vision test for the driving permit.
To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, Maryland has different privileges for each license:
Type One Permit
Teen drivers can only drive with a person who is 21 years of age or older. The teen cannot use a cell phone while driving.
Type Two Permit
The Type Two Permit is for teens or any other person who has already had a license and is applying for a different class or type of license. The Type Two must be held for a minimum of 14 days before applying for the Provisional License.
Provisional License
Teens must pass the Driving Skills Test and complete 60 hours of practice driving to receive the Provisional Licenses. Teens can only drive between the hours of 5:00 a.m. and 12:00 a.m. without adult supervision. Teens cannot ride with friends under the age of 18 for the first 5 months. If the teen violates provisional driving privileges, he/she will be required to attend a Driver Improvement Program and start the provisional driving period from the beginning.
To learn more about Maryland teen driver laws and regulations, please visit the Maryland DMV.
4. Paying in installments may increase your car insurance
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fee. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdraws the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
5. Personal property in your car is not covered by your auto insurance
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
6. Paying for someone else's bad driving
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your car insurance rate could increase. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
7. How much does your car model affects your premium
The auto insurance company premium rating system for cars is on a scale from 3 to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number of your model, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, you're unable to try and find out your car's number before you purchase your car. But you can contact your car insurance company for a quote to gain an idea of how much it will cost to cover your new wheels.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That because Maryland car insurance rates are influenced by Maryland geographic location and its' state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the processes Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.