Insurers consider a wide variety of criteria in developing their premiums. Each of the criteria assists the insurer in predicting the likelihood that you will be in an accident or otherwise incur damages resulting in filing a claim. The criteria that insurers consider commonly include age, gender, marital status, number of miles driven annually, driving record, credit history, whether the insured vehicle is used for business, pleasure or both, the type of vehicle insured, and the location where the vehicle is principally garaged. Since each insurer balances these rating factors differently, the rate quoted by one insurer may differ dramatically from the rates quoted by other insurers. The amount of your premium will also depend upon the coverages you purchase, the amounts or limits for the coverages that you purchase, the type of vehicle(s) you insure and the deductibles you choose for the coverages.
When shopping for an auto insurance policy, it is important to compare quoted premiums, policy limits, coverages and deductibles in order to determine which insurer provides the best value for your insurance dollars. There are many options available and questions to be answered with respect to the differences between quotes. Your insurer or insurance producer should be able to assist you and answer all of your questions.
Two factors determine what you pay for auto insurance
The first factor is underwriting and the second factor is rating. Insurance companies underwrite to assess the risk associated with an applicant, group the applicant with other similar risks and decide if the company will accept the application. Based on the results of the underwriting process, the rating assigns a price based on what the insurer believes it will cost to assume the financial responsibility for the applicant’s potential claim.
Each company adopts its own rating system, although there are general guidelines that all companies follow. The single greatest influence on the rating process is claim frequency. This does not mean how many times you specifically have made an insurance claim, although that will have an additional effect. Claim frequency measures how often an insured event occurs within a group relative to the number of policies contained in that group. Persons sharing characteristics with high claims groups will be charged more for insurance coverage.
Comparison Shopping
When shopping for auto insurance, premium quotations are a useful tool for comparison of different companies’ products. When asking for price quotations, it is crucial that you provide the same information to each agent or company. The agent will usually request the following information: description of your vehicle, its use, your driver’s license number, the number of drivers in your household, the coverages and limits you want.
Search for companies and agents in your area. In addition, ask your neighbors, relatives and friends for recommendations on insurance companies and agents. In particular, ask them what kind of claim service they have received from the companies they recommend. Remember to shop around to get the best price and service.
Comparison shopping is the key to getting the most for your insurance dollar!
Use this interactive guide: A Comparison Guide to Rates - updated as of February 2026 to find sample auto insurance premiums in your area. It lists those companies writing the greatest number of insurance policies in Maryland. Individuals may not qualify for coverage from all insurers.
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