According to Insurify, a website that allows you to compare insurance prices, rates are up significantly this year compared to last. Across Maryland, policyholders have seen a 16% increase on their bills, driving the average rate from $162 a month to $188, making our state one of the top 10 most expensive for car insurance.
“Consumers are feeling this dramatically month over month and year over year,” said Chris Schafer, senior editor at Insurify.
Schafer says inflation, more accidents and costly repairs are behind the overall price increases. But rising crime is another contributing factor. One that hits some regions harder than others.
“If you have a community where more vehicles are being stolen, it becomes more expensive to insure those vehicles,” says Schafer.
This year alone, more than 8,500 cars have been stolen in Baltimore City, a 229% increase from this time last year.
That increase is now driving up insurance rates in Baltimore City by 31%, taking the typical rate from $296 a month to $388, well above the state average.
“We don’t like it, it doesn’t seem fair, but that’s the way it is,” says local economist Anirban Basu.
For those hoping for some relief at the next renewal, Basu says it’s unlikely. Until crime is brought under control, Basu says those within the city limits can expect the rising cost of car insurance to continue unabated.
“One of the reasons we want to reduce car theft in our communities is not only because we could be the next victim, but also because we’re paying more for our insurance because it’s happening to our neighbours,” Basu said.
