A CONSUMER GUIDE TO AUTO INSURANCE

A CONSUMER GUIDE TO

AUTO INSURANCE

A CONSUMER GUIDE TO

AUTO INSURANCE

INSURANCE ADMINISTRATION

A CONSUMER GUIDE TO AUTO INSURANCE

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 How to Shop for Auto Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 What Factors Impact Rates? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 What Discounts are Available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Basic Overview of Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 What Other Coverages are Available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Additional or Supplemental Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Commonly Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Policy and Coverage Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Premium Increases, Nonrenewals and Cancellations . . . . . . . . . . . . . . . . . . . 29 Claims Related Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 How to File a Complaint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Maryland Insurance Administration ? 800-492-6116 ? insurance.

A CONSUMER GUIDE TO AUTO INSURANCE

INTRODUCTION

The Maryland Insurance Administration (MIA) is an independent state agency that regulates Maryland's insurance marketplace and protects consumers by ensuring that insurers and insurance producers (agents and brokers) act in accordance with insurance laws. We produced this guide to help educate Maryland residents about auto insurance.

The Insurance Administration is also responsible for investigating and resolving complaints and questions concerning insurers that do business in Maryland.

HOW TO SHOP FOR AUTO INSURANCE

Comparison shopping is the key to getting the most for your insurance dollar. Consumers think nothing of price shopping for televisions, computer tablets or appliances to save $20 or $30, but forget to shop around for auto insurance where hundreds of dollars can be saved. There are more than 150 auto insurers (or insurance companies) licensed in the state that offer policies, so there are plenty of places to shop.

The best time to shop for insurance is BEFORE you purchase a vehicle, trade in a vehicle, add drivers

to your policy or renew your policy.

Here are some basic tips to follow when shopping for insurance:

Before buying a car, determine your insurance costs. This is the first cost-savings step in purchasing auto insurance. When you are shopping around for a new or used car, be sure you factor in the cost of insurance as well. High-performance vehicles and newer vehicles are generally more expensive to insure.

Maryland Insurance Administration ? 800-492-6116 ? insurance. 1

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