“Marylanders Could Face Higher Car Insurance Rates,” according to Annapolis’ CBS affiliate WJZ reporter Pat Warren. The Maryland General Assembly has plans to increase the minimum liability rates, which would increase premiums for thousands of Maryland drivers. Opponents of the increase argue that this is hardly the time to put another burden on residents that are already hurting financially from job loss, energy cost increases, and smaller budgets. This could force drivers off the road or add to the dangerous problem of people driving without insurance. State Farm car insurance quotes and those from all other insurance companies will no doubt increase as they have no say in these minimum liability rates set by the government. Already passed by the House of Delegates, the Senate seems poised to pass this increase up to 15% from 5%.
Opponents, including some of Maryland’s Senators, question whether a recession is the right time to implement such an increase. Many state employees are worried about losing their jobs and the General Assembly is struggling to keep within its budget, so they wonder if this can’t wait for another time. But supporters argue that Maryland has gone thirty years without an increase and that accidents caused by under-insured drivers are causing undue stress on the health system. Car insurance companies only cover medical care that is paid for by the driver’s policy, so those who drive either under or uninsured are creating uncompensated medical costs. It’s a really difficult issue because it affects insurance costs, health care costs, and reimbursement for injured drivers who didn’t cause the accident they were in. The unfortunate consequence could actually be more people on the roads without any car insurance coverage at all.
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