CONFUSED BY INCREASES IN YOUR AUTO INSURANCE PREMIUMS? FAQs

Q. MY INSURANCE

PRODUCER TOLD ME THAT

THE MIA REQUIRED THIS

RATE INCREASE.

IS THIS CORRECT?

A. Your auto insurance rate can increase due to

general rate increases even if you haven’t made

a claim or gotten a ticket. These are increases

assessed to all policyholders. If your renewal

notice shows your premiums are increasing and

the notice does not indicate this increase is as a

result of a surcharge for an accident or ticket, it

is usually a general rate increase. If you have a

question about the increase, you should speak

with your insurance producer (agent or broker)

or insurer. If you still have questions, you may

contact the MIA.

800-492-6116 Toll-free

insurance.maryland.gov

INSURANCE FAQs

CONFUSED BY INCREASES IN YOUR

AUTO INSURANCE PREMIUMS?

Q. I HAVE NOT RECEIVED

ANY TICKETS OR FILED ANY

CLAIMS, BUT I JUST

RECEIVED MY POLICY

RENEWAL OFFER AND MY

RATES INCREASED. HOW

CAN THEY RAISE MY RATES

IF I HAVEN’T MADE A CLAIM

OR GOTTEN A TICKET?

A. This is incorrect. The law requires insurers to

file their rates and any rate increase requests

with the MIA. The MIA reviews the filings (which

include the insurer’s data justifying the amount

of their premiums and any proposed increase) to

be certain that the increases and rates are not

excessive, inadequate or unfairly discriminatory.

The law also requires the MIA to make certain

that insurers remain financially stable in order to

protect their policyholders so they have enough

funds available to settle claims.

The Maryland Insurance Administration (MIA)

frequently hears from consumers that they feel

their auto insurance rates increase at every

renewal, even if they have been with their

insurer for a long time and have not filed any

claims. The consumers want to know why this

has happened. They also asked: What can be

done about this increase? We will try to answer

these questions and other frequently asked

questions (FAQs) that we receive from

consumers about auto insurance premium rate

increases.

Q. I HAVE BEEN TOLD THAT

INSURERS ARE SUBSIDIZED

BY THE GOVERNMENT?

A. Private commercial insurers do not receive

any government subsidies. Maryland

Automobile Insurance, which was created by the

Maryland General Assembly to provide coverage

to Marylanders who cannot obtain auto

insurance from other insurers, also does not

receive state funds, but is instead funded by

premiums, revenues, and annual assessments on

insurers imposed by state law.

Q.  MY RATE INCREASED
BECAUSE OF A CLAIM, AND
NOT A GENERAL RATE
INCREASE.  I DON’T THINK I
WAS AT FAULT.  IS THERE
ANYTHING I CAN DO? 
A. General rate increases can be necessary for a
number of reasons and are not price gouging.
For example, insurers are impacted by rising
costs and inflation, just like other businesses
and Maryland residents have been. The cost of
repairs and parts have increased. The value of
used cars has gone up so the cost to settle a
total loss claim has increased. Business costs –
from the cost electricity to wages to the cost to
mail policy documents – have increased as well.
If an insurer expends more money than they
receive, they could become insolvent and
unable to pay claims. The MIA’s responsibility is
to make sure these companies stay financially
strong so they are able to pay claims. Another
factor that impacts rates is the requirement that
insurers maintain a reserve, that is funds held in
the event of a catastrophic loss, such as a
hurricane. Generally, these funds are invested
and the insurers earn money off these
investments. If the stock market is down, the
earnings from these investments are also down.
Again, to remain solvent and financially strong,
the insurers must increase their premium rates
to offset this loss in revenue. 
800-492-6116 Toll-free
insurance.maryland.gov
Q.  I STILL DON’T
UNDERSTAND WHY MY
RATES INCREASED.  IT
SEEMS LIKE PRICE GOUGING
TO ME.  WHAT EXACTLY
CAUSED THIS? 
A.   If you think your rate is being improperly
increased because, for example, you were not at
fault for the accident, you can contact your
insurance producer or insurer and ask them to
review the rate increase to ensure it is correct.
You may also file a complaint with the MIA within
30 days of the date of mailing on the notice from
your insurer that the premium is being increased
due to a claim or change in the insured’s driving
record, such as a ticket.  For information about
how to file a complaint with the MIA, go to:
https://insurance.maryland.gov/Consumer/Pages/
FileAComplaint.aspx.  
The directions (called a “Right to Protest”) will also
be included in the notice of premium increase
you should receive.  Under state law, an insurer is
required to mail a notice of renewal premium
increase at least 45 days before the renewal policy
goes into effect.  This notice may be sent with the
renewal package or separately. If you file your
complaint with the MIA on time, the MIA will
review the increase to make certain that the
increase and notice comply with the law.  A
written determination will be issued once the
MIA’s investigation is complete.  You will be
required to pay the premium amount being billed
while this investigation is being completed. If it is
later determined that the increase is improper,
the MIA will require the insurer to reimburse you
for any overpayment. 
General rate increases can be
necessary for a number of reasons
and are not price gouging.

Q.  WHAT FACTORS IMPACT
HOW MUCH MY INSURER
CHARGES ME FOR MY AUTO
POLICY? 
800-492-6116 Toll-free
insurance.maryland.gov
A. There are many factors that go into how your
premium is calculated. Some of the factors that
insurers use to determine a policyholder’s rate
include age, gender, length of time as a licensed
driver, where you live, type of car, and how it is
used, as well as driving and claims history. For
instance, a teenage driver will generally have
rates much higher than an older driver because
the crash rate for younger drivers is statistically
higher than that for older drivers. Another factor
that impacts a rate is where you live. A
policyholder who lives in a densely populated
area with a lot of traffic and who must park their
car on the street is statistically more likely to
present a claim. As of 2022, Baltimore City ranks
as the city with the most automobile accidents
in the United States, and drivers in Baltimore
average one collision every 4.19 years compared
to the national average of 10.57 years. 
(Source: DailyInfographic.com, “Which US Cities Have the
Highest Rate of Car Accidents”, by Dan Simms, 02-23-22.) 
Q.  SO WHAT CAN I DO TO
LOWER MY RATES? 
Q.  IF MY PREMIUM
INCREASE IS NOT DUE TO A
CLAIM OR CHANGE IN
DRIVING HISTORY, BUT I
STILL WANT TO PROTEST
THE INCREASE, IS THERE
ANYTHING I CAN DO? 
A.  Generally, no.  If your policy rate increase is
due to a general rate increase that has been
properly filed with the MIA, there may be
nothing we can do to require your insurer to
remove the increase.  However, you certainly
may file a complaint, either on the MIA’s
website, https://insurance.maryland.gov, or by
writing to the MIA directly. The MIA will be glad
to review the increase to make certain it
complies with Maryland’s insurance laws.  You
will receive a written determination following
that investigation.  
A.  You may ask your insurance producer if you are getting all the discounts you qualify for.  One way
to lower your premium is to bundle multiple policies with the same insurer, called a multi-policy
discount.  This applies when you pair your auto insurance along with your home or renters policy
through the same insurer.  Your insurer may also offer a discount for safe driver, good student, claims
free and/or safety equipment your car may have. You may also want to ask your insurance producer
to review your policy to make sure it is based on your current driving habits and coverage needs.  For
example, are you retired or mainly telework?  Let your insurance producer know that and the
approximate number of miles you put on your car in a year.  You might also want to discuss the
amount of your coverages and deductibles.  While it is true that lower coverages may be less
expensive, if you have a loss which you are liable for and don’t have enough coverage to fully settle
the claim, you could be held personally responsible for that additional amount.  The purpose of
insurance is to protect you in the event you have an at-fault loss.  A deductible is the amount you are
willing to pay in the event you have a loss. Both comprehensive and collision coverage usually have a
deductible.  The higher the deductible, the lower your rate.  When choosing the amount of your
deductible, think about what you can afford to pay if your car is disabled by a covered peril.  
Comprehensive coverage is less costly than collision coverage so many people select a lower
deductible for comprehensive than collision coverage. 

Q. I SPOKE WITH MY INSURANCE PRODUCER AND WE

REVIEWED MY POLICY. I AM STILL NOT HAPPY WITH MY

RATES. WHAT ELSE CAN I DO?

A. Different insurers may offer more competitive rates for the same insurance coverages so you can

shop around to see if you can get a better rate. When shopping, be sure you are comparing apples to

apples. It is advisable to have the current copy of your policy available when speaking with other

insurers so you obtain a quote with the same coverages that your current policy provides. The MIA

provides a rate guide which may be viewed on our website, https://insurance.maryland.gov, or you

may request to have one mailed to you. The rate guide has several scenarios broken down by

geographic location. This allows you to compare the rates of approximately 50 different companies.

There is also an interactive comparison guide on our website at:

https://insurance.maryland.gov/Consumer/Pages/Auto-Insurance-A-ComparisonGuide-To-Rates.aspx

If you still have questions about this topic, or even another insurance-related questions or need

further assistance, please contact us at 410-468-2000 or toll free at 1-800-492-6116 or visit our

website, https://insurance.maryland.gov.

Contact the Maryland Insurance Administration at:

200 St. Paul Place, Suite 2700

Baltimore, Maryland 21202

410-468-2000 | 800-492-6116 | 800-735-2258 TTY

https://insurance.maryland.gov/Consumer/Pages/FileAComplaint.aspx

ABOUT THE MARYLAND INSURANCE ADMINISTRATION

The Maryland Insurance Administration (MIA) is the state agency that

regulates the business of insurance in Maryland. If you feel that your

insurer or insurance producer acted improperly, you have the right to file

a complaint. The MIA can investigate complaints that an insurer or

insurance producer has:

Denied or delayed payment of all portions of a claim

Improperly terminated your insurance policy

Raised your insurance premiums without proper notice or in

excess of what the law allows

Made false statements to you in connection with the sale of

insurance or the processing of insurance claims

Overcharged you for services, including premium finance charges

This consumer guide should be used for educational purposes only. It is not intended to provide legal advice or opinions regarding coverage under a specific

insurance policy or contract; nor should it be construed as an endorsement of any product, service, person, or organization mentioned in this guide. Please

note that policy terms vary based on the particular insurer and you should contact your insurer or insurance producer (agent or broker) for more information.

This publication has been produced by the Maryland Insurance Administration (MIA) to provide consumers with general information about insurance-related

issues and/or state programs and services. This publication may contain copyrighted material which was used with permission of the copyright owner.

Publication herein does not authorize any use or appropriation of such copyrighted material without consent of the owner. All publications issued by the MIA

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