Why Are Car Insurance Rates in Baltimore So High?

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Drivers in Baltimore pay higher than average rates for car insurance.

In fact, the average Baltimore driver pays around $1,818 per year for full coverage car insurance, nearly $400 more than the nationwide average of $1,450 per year.

Why is car insurance so expensive in Baltimore? How can you save money on your Baltimore auto insurance policy? Keep reading to discover why car insurance rates are so high in Baltimore.

3 Reasons Car Insurance is Expensive in Baltimore

Baltimore drivers pay hundreds of dollars more for car insurance every year than the average American. However, car insurance companies don’t hate Baltimore. In fact, Baltimore has similar car insurance premiums to other major cities in the United States.

Here are three reasons why car insurance is expensive in Baltimore:

1) Maryland Has Higher than Average Car Insurance Premiums

The average driver in Maryland pays around $1,561 per year for full coverage car insurance, which is over $100 more per year than the nationwide average. Whether you’re living in Baltimore or anywhere else in Maryland, you can expect to pay higher rates than you would in most other parts of the country.

2) City Drivers Pay More for Car Insurance

Across the country, drivers in cities almost always pay more for car insurance. Insurance is about risk. As a city driver, you encounter more people and traffic than you would in remote or rural areas. There’s more congestion. Most cities have higher accident rates than rural areas. Traffic patterns are more complicated. All of these factors raise risk and increase car insurance premiums in cities across the United States – including Baltimore.

3) Higher Crime Rates Lead to Higher Insurance Premiums

Cities tend to have higher crime rates than rural areas. In cities with particularly high crime rates, insurance companies can raise rates significantly. If you buy car insurance in Baltimore, the insurance company will ask for your ZIP code. The insurance company will check crime statistics in your ZIP code, then increase rates based on the perceived risk. Full coverage car insurance includes coverage for theft, vandalism, hit-and-runs, and other costs.

Other Reasons Baltimore Has High Car Insurance Premiums

Insurers use hundreds of factors to calculate car insurance rates. Other factors that increase Baltimore car insurance premiums include:

Severe Weather: As severe weather events become more common in Baltimore, insurers raise rates.

Rising Healthcare Costs: Healthcare costs rise about 7% every year in Maryland. Insurers cover medical bills after an accident, and they pass these costs onto drivers.

Rising Cost of Living: The cost of insurance rises over time as cost of living increases. Mechanics charge higher rates, for example, and insurers pass these costs onto policyholders.

Uninsured Drivers: About 1 in 8 drivers in Maryland does not have car insurance. Uninsured motorists are a nightmare for insurers as they raise costs significantly.

Density and Traffic: As the population of Maryland increases, more drivers hit the road, increasing the risk of accidents.

How to Find Cheap Car Insurance in Baltimore

Yes, Baltimore has higher car insurance premiums than other parts of the country. However, there are still plenty of ways for drivers to save.

The two best ways to find cheap car insurance in Baltimore include:

Compare Quotes Online: It’s easy to compare quotes instantly from Baltimore’s best insurers. Enter basic information about yourself online, then get cheap quotes from Baltimore’s best insurance companies.

Take Advantage of Discounts: All insurance companies in Baltimore provide discounts. If you never ask for discounts, then you may never receive them. Discounts can save you hundreds per year on car insurance in Baltimore.

Final Word

Drivers in Baltimore pay more for car insurance than drivers in other parts of the country. However, when comparing auto insurance in Baltimore to other major cities, Baltimore’s rates are close to the average.

To save money on car insurance in Baltimore, compare quotes online today and take advantage of discounts.

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