What Factors Go Into Determining What One Pays for Insurance

Automobile insurance in Maryland is a competitive market and because of this, there are a lot of companies that claim that their prices are the lowest. Commercial are always telling customers that they need to switch auto insurance companies. No matter what the company, there are still a number of factors that will have some bearing on the pricing of the auto insurance. This may vary from one company to the next, so checking on these specifics is important.

Driving History

This area is one of the most important when it comes to insurance pricing, and this will be the one that often disqualifies people from getting insurance from traditional companies. One’s driving history is often highly scrutinized. If there are previous car accidents where the driver was at fault, these will not help the insurance cost. If there are older incidents where the person was not at fault, there is usually little affect on the premiums. In extreme cases, this history will make a person unable to get tradition insurance. In Maryland, every driver must carry insurance, so when other companies will not insure a person, he will need to research getting coverage through the Maryland Automobile Insurance Fund.

Bodily Injury Liability and Property Damage

The specific amount of coverage for different things will certainly affect the price of the policy as well. The injury and property liability will pay for any damages that are incurred as a result of reckless of negligent driving of a vehicle. In Maryland, there is a minimum of 30/60/15. This means that the insurance needs to cover $30,000 per individual, $60, 000 per accident when there is bodily damage and $15,000 for property damages.

Uninsured Motorist Liability

This coverage is required as well and the amount that is obtained affects to policy price. This part of the insurance is used to cover expenses after an uninsured motorist causes property damage or physical injury. Maryland drivers must have a minimum of 30/60/15 coverage for this as well.

Insurance is necessary and pricing can vary wildly depending on the individual and the situation. Regardless, it is always best to consult a professional insurance representative for more assistance.

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