800-492-6116 Toll-free
insurance.maryland.gov
Many consumers are looking for ways to save money on their expenses. One area where
many people are trying to save money is on their insurance. It is a good idea to review your
policies to make certain that you are not paying too much for your coverage or paying for
a policy that you do not need. However, it is also important that you maintain appropriate
coverage. Here are some general tips to help you as you review your policies.
IMPORTANT TIPS FOR REVIEWING YOUR
INSURANCE COVERAGE
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CONSUMER ADVISORY
AUTOMOBILE INSURANCE
Maryland law requires that all owners of automobiles
purchase and maintain at least the minimum coverage
for bodily injury liability, personal injury protection,
property damage and uninsured motorist protection (For
specific details about requirements, see, A Consumer
Guide to Auto Insurance at insurance.maryland.gov or
contact us at 410-468-2000 or 800-492-6116 to obtain a
copy.) Failure to maintain the minimum coverage will
result in substantial fines from the Motor Vehicle
Administration.
Your insurer may cancel your policy for non-payment of
premium even if your payment is only one day late. But
the insurer must first provide you with 10 days advance
notice of the date that the policy will be cancelled for
non-payment of premium.
800-492-6116 Toll-free
insurance.maryland.gov
HEALTH INSURANCE
Make certain that you understand all of the “costs” (for example, deductibles, copays
and coinsurance) and “rules” (for example, do you need a referral before you can see a
specialist) of your policy. To find out more information, go to our website and review
our health insurance brochures at:
https://insurance.maryland.gov/Consumer/Pages/HealthCoverage.aspx.
Comparison shop – obtain quotes on a comparable policy (i.e. one that has the same
coverage limits and types of coverage). The Maryland Insurance Administration has a
number of brochures that will help you shop at:
https://insurance.maryland.gov/Consumer/Pages/HealthCoverage.aspx.
Your insurer can cancel your policy for nonpayment of premium; however, under
Maryland law, you have a grace period to make that payment. Contact your insurer
before your payment is due to find out the details of the grace period.
If you are considering purchasing a medical discount plan, make certain that you
understand that this is not insurance, but instead gives you a discount for certain
services at participating facilities. For more information on these plans, refer to What
Consumers Need to Know About Discount Medical and Discount Drug Plans at
insurance.maryland.gov or contact us at 410-468-2000 or 800-492-6116 to obtain a
copy.
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Make sure that you are receiving all discounts the insurer offers (for example, multi-
car discount; good grade discounts for students; accident free discounts.)
Review your deductible – raising the deductible on your policy can decrease your
premium.
Consider whether you want to maintain comprehensive and/or collision coverage.
If your vehicle is older and has been paid off, you may want to consider dropping
these coverages since it will reduce your premium. However, it is important to
know that if you drop these coverages and your vehicle is damaged in an accident
that you cause, or if it is stolen, vandalized or hit by an animal, you must pay for the
repair.
Comparison shop – obtain quotes on a comparable policy (i.e. one that has the
same coverage limits and types of coverage). Refer to our Auto Insurance: A
Comparison Guide for Rates at insurance.maryland.gov or contact us at 410-468-
2000 or 800-492-6116 to obtain a copy.
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You can take a number of steps to reduce your automobile insurance premium:
800-492-6116 Toll-free
insurance.maryland.gov
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Medicare (A federal health insurance program for people age 65 or older, people
under 65 with certain disabilities and people of any age who have end-stage renal
disease.) www.medicare.gov or call 800-633-4227
Medicaid/Maryland’s Medical Assistance Program (A government-funded health
insurance program for people with limited income and people with disabilities who
meet income-sensitive eligibility guidelines and other criteria.)
https://mmcp.health.maryland.gov or call 410-767-6500
Maryland Children’s Health Insurance Program (A government program for pregnant
women and children up to age 19. To enroll, call the Maryland Health Connection at
1-855-642-8572 or visit https://mmcp.health.maryland.gov/chp/Pages/Home.aspx or
call 410-767-6500
If you lose your health insurance because you lose your job, you should contact the
Maryland Health Connection (www.marylandhealthconnection.gov or call 1-855-642-
8572) to determine if you are able to obtain coverage through Maryland’s Health
Benefit Exchange. You may also have a number of other options available, including
continuation of those health benefits under COBRA or Maryland’s Continuation of
Benefits law. (See Health Insurance Options at
https://insurance.maryland.gov/Consumer/Pages/HealthInsuranceOptions.aspx.
HOMEOWNERS INSURANCE
Make sure you are taking advantage of all discounts that are available (for example,
multi-policy discounts, having a security system.)
Consider increasing your deductible. Remember, the higher the deductible, the lower
the premium. Before you change your deductible, check with your lender to make
certain that the conditions of your loan do not require a specific deductible. Also,
make certain that the deductible is an amount you can afford to pay if you do have a
covered loss.
Your insurer may cancel your policy for non-payment of premium even if the
payment is only one day late. But the insurer must first provide you with 10 days
advance notice of the date that the policy will be canceled for non-payment of
premium.
Even if your insurance premiums are included in your mortgage payment, you have
the right to choose your insurer, so you may shop around to find a better rate.
Your homeowners policy only insures the buildings and other structures on your
property and the contents. It does not cover the land. Remember that your coverage
amount is not related to the market value or the potential sale price of your home.
The key is making certain that you have the appropriate amount of coverage to
rebuild your home and replace the contents of your home.
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Both the federal and state government have several programs that may be available to
you if you are having problems finding or affording insurance:
800-492-6116 Toll-free
insurance.maryland.gov
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The cost to rebuild your home following a loss has continued to increase as materials,
labor and debris removal costs have all increased. Thus, it is important that you
continue to insure your home for the cost to rebuild and replace it in the event of a
loss.
Comparison Shop – obtain quotes on a comparable policy (i.e. one that has the same
coverage limits and types of coverage). You can also refer to the MIA’s A Consumer
Guide to Homeowners Insurance and Homeowners & Renters Insurance: A
Comparison Guide for Rates at insurance.maryland.gov or contact us at 410-468-2000
or 800-492-6116 to obtain a copy.
LIFE INSURANCE
Before you decide to surrender or sell an existing life insurance policy, make certain
that you carefully consider the tax consequences of the transaction and discuss this
with a trusted financial advisor.
Your insurer may cancel your policy for nonpayment of premium; however, under
Maryland law, you have a grace period to make that payment. Check your policy or
contact your insurer before your payment is due to find out the details of that grace
period.
Reviewing your policies and comparison shopping can help you save money. But be sure
that the policy you choose will provide enough coverage if you need it. When reviewing
your policies, or comparison shopping, make certain that you are dealing with insurers
and insurance producers (also known as agents or brokers) that are licensed to do
business in Maryland. If you have a question, please contact the Maryland Insurance
Administration at 410-468-2000 or 800-492-6116.
