Why are car insurance rates up in Maryland?
Why are car insurance rates up in Maryland?
Why are car insurance rates up in Maryland?
One thing everyone is noticing these days is rising costs, and that includes your car insurance.
Viewers have asked WJZ why their auto insurance rates are increasing in Maryland.
WJZ Anchor Rick Ritter tracked down the answer for this segment of Question Everything.
Why is car insurance so expensive?
Rick Ritter sat down with Marie Grant, who is Maryland's insurance commissioner.
Marie Grant: "Typically in urban environments, we do see higher rates of auto insurance based on experience on what happens to a car in a city.
Grant: "What we're seeing here in Maryland and what consumers are feeling are, unfortunately, national trends that consumers in other states are feeling, as well."
Data released this year from Insurify shows car insurance costs surged nationally by 15% in 2024. Maryland drivers pay the most for car insurance, according to the website.
On average, Marylanders are paying more than $4,000 a year, which is a 53% increase from 2023.
Grant: "Maryland, historically, has been in the top quarter of states for auto insurance rates, and that's due in part to the nature of our state."
"We tend to drive a lot, with longer commuting distances and a lot of congestion on roads. With pretty heavy traffic and accident rates higher than other states, it all contributes."
While congestion and traffic-related incidents play a role, high repair costs are also to blame. AAA A found that today's advanced technology in cars can cost twice as much to repair, and now the threat of tariffs could complicate things even more.
Grant: "During the pandemic, costs went down, folks weren't driving as much, and there weren't as many accidents. As Marylanders got back on the road, as well as inflation, the cost of cars then increased."
Rick Ritter: "With so much talk about the escalating trade war and the president's tariffs, will it help contribute to rising car insurance rates?"
Grant: "Unfortunately, the answer is yes. We haven't seen evidence of that with current rate filings, but if you asked me a month ago without tariffs on the horizon, I would've said trends are looking positive."
Climate and crime can be contributing factors to higher costs of insurance, as well.
Maryland has seen stolen vehicle claims surge over the last few years, according to the National Insurance Crime Bureau.
If you live in an area with more frequent severe weather, like flooding or wildfires, it can impact your premiums, too.
What can Marylanders do to save?
Grant says to shop around for several insurers. Most think two or three, but five to 10 is what's recommended.
Search for discounts, like safety features or bundling policies, which can help keep costs down.
Consider a telematics program that monitors how safe you're driving. Then can bring down rates for you, as well.
When in doubt, the insurance commissioner's office lines are always open. The office receives dozens of calls daily from Marylanders inquiring about their rates.
"I love hearing from Marylanders. Consumers should definitely reach out to us," Grant said. "Fresh eyes never hurt, so we do want to make sure we are asking tough questions of our insurers to make sure they are putting their best foot forward, and that's what we do."
Car insurance adds to a budget
From the escalating trade war to inflation, it feels like the cost of everything is going up these days.
"It's horrible, from car insurance to groceries," a Baltimore resident said.
"Everything feels so expensive," said Yaniv Ezra, an Uber driver and student in the city. "I'm a DoorDash and Uber Eats driver, and you can see that barely anyone is buying anything."
The rising prices for utilities, food, and gas, mixed in with skyrocketing car insurance, make things tough.
"It's very high," Ezra said. "I'm paying $200 a month now just because I moved to the city."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 hours ago
- Yahoo
Startup develops revolutionary new 'superwood' that can resist fire and water: 'Nature's most highly evolved structure'
Wood isn't yielding to concrete and steel when it comes to being the construction material of the future. That's because a Maryland-based company's lumber breakthrough could soon put it in contention as the leader. InventWood's product isn't your grandfather's two-by-four. Superwood has 10 times the strength-to-weight of steel and is six times lighter. What's more, it's fire-, rot-, and pest-resistant, with a production process that's 90% cleaner than steel — all while mimicking the look and feel of regular lumber, per the company website. "Superwood demonstrates what's possible when we combine nature's most highly evolved structure with revolutionary science," InventWood CEO Alex Lau said in an Interesting Engineering report. It all starts with a molecular-level transformation. Superwood is made by removing specific "components" at the timber's cellular level. The experts use food-safe chemicals for the "molecular reinvention." The wood is compressed, increasing density by a factor of four, and creating hydrogen bonds between the cellulose fibers. It's part of how the material becomes stronger and resistant to rot. Finishing treatments can provide customized design stylings, InventWood added. Environmentalist and entrepreneur Paul Hawken said the product could shape the future of worldwide construction. It's "an extraordinary breakthrough that exalts the genius of the natural world," he said, per IE. What is stopping you from upgrading to a heat pump system? The cost of installation I live in a cold area I don't know enough about it I already have one Click your choice to see results and speak your mind. The company secured $15 million in a funding round, and it intends to begin shipping products from Frederick by September. Its total fundraising has hit $50 million in private and government sources. The innovation got its start from research completed by University of Maryland Professor Liangbing Hu, as IE noted. The university has made headlines before for genetic modifications to wood that makes it stronger for construction use. Elsewhere, experts at Michigan Technological University are working with layers of wood and resin to form stronger materials. Some architects are even predicting that wooden skyscrapers will soon become more common as safe and sustainable alternatives to dirty concrete and steel towers. For its part, the building and construction sector accounts for 37% of global heat-trapping air pollution, according to the United Nations. Those toxins are linked by NASA to increased risks of severe weather, which are even impacting insurance premiums and coverage. Consumers and builders can encourage cleaner innovations by supporting entrepreneurs who are developing better materials. Investing in their enterprises is a way to build a portfolio that aligns with your personal values. Meanwhile, an easy way to curb pollution coming from your home is to switch to LED lightbulbs. If you replace your home's old lightbulbs with the newer illuminators, you can save hundreds of dollars a year on your power bill while producing five times less pollution. For InventWood's part, company officials said the team is working on strategic partnerships for product deployment in North America. By supporting local economies, the company intends to provide a sustainable alternative to imported steel and aluminum, as IE reported. "We're prioritizing domestic sourcing and production to maintain the exacting standards Superwood requires," Lau said. "We're focused on ensuring every step of our process, from forest to final product, delivers uncompromising quality while supporting American manufacturing." Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
19 hours ago
- Fast Company
Trump rollback on clean energy subsidies stalls major solar, wind projects and manufacturing plans
Singapore-based solar panel manufacturer Bila Solar is suspending plans to double capacity at its new factory in Indianapolis. Canadian rival Heliene's plans for a solar cell facility in Minnesota are under review. Norwegian solar wafer maker NorSun is evaluating whether to move forward with a planned factory in Tulsa, Oklahoma. And two fully permitted offshore wind farms in the U.S. Northeast may never get built. These are among the major clean energy investments now in question after Republicans agreed earlier this month to quickly end U.S. subsidies for solar and wind power as part of their budget megabill, and as the White House directed agencies to tighten the rules on who can claim the incentives that remain. This marks a policy U-turn since President Donald Trump's return to office that project developers, manufacturers and analysts say will slash installations of renewable energy over the coming decade, kill investment and jobs in the clean energy manufacturing sector supporting them, and worsen a looming U.S. power supply crunch as energy-hungry AI infrastructure expands. Solar and wind installations could be 17% and 20% lower than previously forecast over the next decade because of the moves, according to research firm Wood Mackenzie, which warned that a dearth of new supplies could slow the expansion of data centers needed to support AI technology. Energy researcher Rhodium, meanwhile, said the law puts at risk $263 billion of wind, solar, and storage facilities and $110 billion of announced manufacturing investment supporting them. It will also increase industrial energy costs by up to $11 billion in 2035, it said. 'One of the administration's stated goals was to bring costs down, and as we demonstrated, this bill doesn't do that,' said Ben King, a director in Rhodium's energy and climate practice. He added the policy 'is not a recipe for continued dominance of the U.S. AI industry.' The White House did not respond to a request for comment. The Trump administration has defended its moves to end support for clean energy by arguing the rapid adoption of solar and wind power has created instability in the grid and raised consumer prices – assertions that are contested by the industry and which do not bear out in renewables-heavy power grids, like Texas' ERCOT. Power industry representatives, however, have said all new generation projects need to be encouraged to meet rising U.S. demand, including both those driven by renewables and fossil fuels. Consulting firm ICF projects that U.S. electricity demand will grow by 25% by 2030, driven by increased AI and cloud computing – a major challenge for the power industry after decades of stagnation. The REPEAT Project, a collaboration between Princeton University and Evolved Energy Research, projects a 2% annual increase in electricity demand. With a restricted pipeline of renewables, tighter electricity supplies stemming from the policy shift could increase household electricity costs by $280 a year in 2035, according to the REPEAT Project. The key provision in the new law is the accelerated phase-out of 30% tax credits for wind and solar projects: it requires projects to begin construction within a year or enter service by the end of 2027 to qualify for the credits. Previously the credits were available through 2032. Now some project developers are scrambling to get projects done while the U.S. incentives are still accessible. But even that strategy has become risky, developers said. Days after signing the law, Trump directed the Treasury Department to review the definition of 'beginning of construction.' A revision to those rules could overturn a long-standing practice giving developers four years to claim tax credits after spending just 5% of project costs. Treasury was given 45 days to draft new rules. 'With so many moving parts, financing of projects, financing of manufacturing is difficult, if not impossible,' said Martin Pochtaruk, CEO of Heliene. 'You are looking to see what is the next baseball bat that's going to hit you on the head.' About face Heliene's planned cell factory, which could cost as much as $350 million, depending on the capacity, and employ more than 600 workers, is also in limbo, Pochtaruk said in an interview earlier this month. The company needs more clarity on both what the new law will mean for U.S. demand, and how Trump's trade policy will impact the solar industry. 'We have a building that is anxiously waiting for us to make a decision,' Pochtaruk said. Similarly, Mick McDaniel, general manager of Bila Solar, said 'a troubling level of uncertainty' has put on hold its $20 million expansion at an Indianapolis factory it opened this year that would create an additional 75 jobs. 'NorSun is still digesting the new legislation and recent executive order to determine the impact to the overall domestic solar manufacturing landscape,' said Todd Templeton, director of the company's U.S. division that is reviewing plans for its $620 million solar wafer facility in Tulsa. Five solar manufacturing companies – T1 Energy, Imperial Star Solar, SEG Solar, Solx and ES Foundry – said they are also concerned about the new law's impact on future demand, but that they have not changed their investment plans. The policy changes have also injected fresh doubt about the fate of the nation's pipeline of offshore wind projects, which depend heavily on tax credits to bring down costs. According to Wood Mackenzie, projects that have yet to start construction or make final investment decisions are unlikely to proceed. Two such projects, which are fully permitted, include a 300-megawatt project by developer US Wind off the coast of Maryland and Iberdrola's 791 MW New England Wind off the coast of Massachusetts. Neither company responded to requests for comment. 'They are effectively ready to begin construction and are now trapped in a timeline that will make it that much harder to be able to take advantage of the remaining days of the tax credits,' said Hillary Bright, executive director of offshore wind advocacy group Turn Forward.
CNN
19 hours ago
- CNN
Tesla's stock is tumbling after Elon Musk failure to shift the narrative
Elon Musk's big promises apparently no longer seem to be enough for many Tesla investors. Shares of Tesla (TSLA) fell 9% on Thursday following another dismal earnings report, released after the bell Wednesday. Tesla's earnings and revenue both fell by double-digit percentages following the biggest sales drop in the company's history. The automaker also faces a number of financial headwinds, including the loss of a $7,500 tax credit for US EV buyers starting in October, and the vanishing market for regulatory credit sales, which has earned Tesla $11 billion since 2019. But Tesla CEO Elon Musk barely talked about that on the earnings call Wednesday, although he did acknowledge the company 'probably could have a few rough quarters.' Instead, he talked about his grand vision for the future, including Tesla's long-promised robotaxi service; and its humanoid robot, Optimus, which is still in development. The lack of details about the company's plans to solve problems in the near term disappointed some investors and analysts. 'Investors have been very forgiving of Tesla for several quarters now, despite obvious headwinds to their business,' Garrett Nelson, analyst at CFRA Research, told CNN Thursday. 'But I think its investors are taking a more realistic view of the story at this point. Some of his brilliance has been his ability to keep investors focused on the long term and ignoring the near term and intermediate term. Now, headwinds are difficult to ignore.' Nelson downgraded the company's stock to a neutral rating in April. But even some of the Tesla bulls on Wall Street are saying that the time for Musk to take action is running out. 'The street is losing some patience,' Wedbush Securities tech analyst Dan Ives told CNN Thursday, although he said he still believes in the autonomous vehicle and artificial intelligence vision laid out by Musk and Tesla. Musk has made big promises about his robotaxi service, including that it would be in service within a year as early as 2019. Tesla's robotaxis finally rolled out in June this year, albeit in a limited portion of Austin, Texas, to friends and fans of the company, and with an employee sitting beside the empty driver's seat. However, that limited rollout wasn't enough to stop Musk from making extraordinary claims on Wednesday that the service would be available to half the nation's population by year's end. To achieve that, Tesla will need to get regulatory permission to operate in two states per week through the rest of the year, including New York, which does not allow autonomous vehicles on its roads. Morningstar analyst Seth Goldstein said that while he does believe Tesla will eventually be successful in its robotaxi venture, 'the software will require further testing' and he does not expect a full robotaxi product until 2028. But Musk has a history of making grand promises that do not pan out. Like the Cybertruck – the only new vehicle Tesla has offered in the last six years. Musk said Tesla was supposed to be delivering 250,000 vehicles annually by this year. But full-year sales of the Cybertruck and Tesla's two other expensive models were less than 80,000. Sales of the three plunged 52% in the most recent quarter. Tesla also started the year forecasting it would achieve higher sales following its first annual sales drop in its history in 2024. But after two quarters of record sales declines, most investors now assume that it will not meet that goal either. And with Musk himself barely mentioning car sales during an hour-long conference call, it doesn't appear that is enough for shareholders any longer. 'We are mixed on Tesla's ability to meet its robotaxi timelines, cost targets, and scale,' wrote Ben Kallo, an analyst for Baird, in a note to clients late Wednesday. 'So far Tesla has received a pass due to how ambitious/revolutionary these products are, but we think continued sluggishness in the auto business could cause more focus on the near term.'
