For many Maryland residents, the cost of car insurance is a significant line item in their budget– with the average policyholder paying $2,931 per year for a full-coverage plan. Staying protected on the road is essential, but finding cheap car insurance can feel like a constant challenge, especially when rate adjustments are announced. And for thousands of AAA policyholders, that search may be starting again.
What’s Happening?
CSAA, a AAA insurer, is scheduling an average increase of 19.8% to its auto insurance premiums in Maryland. This significant adjustment is scheduled to impact renewal business beginning on June 11, 2025. This rate hike will see the total premium for CSAA General’s Maryland auto insurance customers increase by nearly $4.4 million, translating to $386 per policyholder.
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Why Are Car Insurance Rates Increasing?
It’s a common question for drivers when your rates increase: “Why is my car insurance going up, even if I haven’t had an accident?” Several factors contribute to these rate adjustments, and in Maryland, some specific trends are influencing the increase in premiums:
- Rising Claims Costs: This is often the primary driver of rate increases. The cost of repairing vehicles has surged due to several factors, including advancements in vehicle technology, parts and labor inflation, and used car values.
- Increased Accident Frequency and Severity: Maryland has experienced a rise in traffic fatalities and accidents. More vehicles on the road, alongside factors like distracted driving and higher speed limits in some areas, contribute to a greater number of incidents. When accidents are more frequent and more severe, insurers pay out more in claims.
- Medical Costs: Auto accidents often result in injuries, and the cost of medical treatment continues to escalate. This directly impacts the bodily injury liability component of insurance claims.
- Uninsured/Underinsured Motorists: Maryland, like many states, faces challenges with uninsured or underinsured drivers, averaging 15.1% across the state. When an insured driver is involved in an accident with someone who lacks sufficient coverage, their own insurance company may bear a greater financial burden, which can contribute to overall rate increases.
- Weather-Related Claims: While not always as impactful as in other states, Maryland can experience severe weather, including storms that lead to comprehensive claims for vehicle damage (e.g., hail, flooding, fallen trees).
- Legislative and Regulatory Changes: New mandates or changes in state insurance laws can impact how insurers price their policies.
Proactive Strategies to Find Affordable Car Insurance
While the news of a rate increase can be frustrating, Maryland drivers have a range of effective strategies they can employ to help offset these rising costs and potentially secure cheap car insurance.
Act Before Your Renewal: If you are a CSAA policyholder, one of the most immediate and impactful steps you can take is to contact your insurance rep before June 11, 2025. Inquire about your upcoming renewal and ask them to re-evaluate your current policy. Sometimes, a simple requote can reveal opportunities to apply new discounts you might now qualify for, or adjust existing factors that could lead to a more favorable premium.
Shop Around: The Maryland auto insurance market is highly competitive, and different insurers have varying pricing models, risk assessments, and discount offerings. Gathering multiple quotes from a variety of carriers can help you find the best policy at the best price. Using an online comparison tool can also make this easier.
Optimize Your Coverage Levels: A thorough review of your existing policy can uncover areas where you might be able to save.
- Increase Your Deductibles: Opting for a higher deductible on your comprehensive and collision coverage means you’ll pay more out-of-pocket if you have a claim, but it almost always leads to a lower premium. Ensure you choose a deductible amount you can comfortably afford in an emergency.
- Re-evaluate Physical Damage Coverage for Older Vehicles: If your vehicle is older, fully paid off, and has a lower market value, consider whether it’s still worth paying for comprehensive and collision coverage. The cost of these coverages might approach or even exceed the car’s actual cash value over time.
- Review Optional Coverages: Check for any optional coverages you may have, such as rental car reimbursement, roadside assistance, or custom parts coverage. If you have these services through a different provider (e.g., an auto club or your credit card), you might be able to remove them from your policy.
Leverage Every Applicable Discount: Insurance companies offer a wide array of discounts, and ensuring you qualify for all of them can lead to significant savings. Common discounts include multi-policy/bundling, good driver, good student, anti-theft, and vehicle safety.
Maintain a Clean Driving Record: This is arguably the most impactful factor over the long term. Avoiding traffic violations and at-fault accidents is paramount to keeping your car insurance in MD as low as possible. Tickets and claims stay on your record for several years and can significantly increase your premiums.
Staying Informed and Proactive
While AAA’s upcoming rate increase reflects the evolving dynamics of the insurance market, it also serves as a reminder to actively manage your insurance costs. By proactively requoting your policy, diligently shopping around with other carriers, thoughtfully adjusting your coverage, and maximizing every possible discount, you can work toward securing an affordable policy that still provides the essential protection you need to drive confidently across Maryland.
Next time, don’t wait until your rates go up. Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
