What is the Maryland Automobile Insurance Fund?


Maryland state flagThe Maryland Automobile Insurance Fund (MAIF) is a program created by the MD State Legislature in 1972 to help vehicle owners who can’t find auto coverage, to purchase a policy containing enough vehicle protection to meet the Old Line State’s financial responsibility requirements. Before getting behind the wheel, residents are required to purchase a policy that includes bodily injury and property damage liability with limits of at least 30/60/15. However, residents with poor driving records or a lack of experience behind the wheel may have difficulty finding an insurer for a number of reasons, and the MAIF helps make it possible for these motorists to legally drive.

According to the MD Department of Transportation, car accidents result in more deaths within the state each year than homicides. In 2007 there were an estimated 100,900 reported collisions resulting in roughly 51,700 injuries and 614 deaths. Unfortunately, this means that not every motorist within the state has a perfectly clean driving record. A resident with a history of accidents, speeding tickets and other violations may have difficulty finding affordable Maryland auto insurance because coverage providers often consider a driver’s risk before issuing a policy. If a person has a statistically higher chance of filing a claim or being involved in an accident, they may not be issued a policy.

If a motorist has been denied coverage by at least two different companies, they may attempt to meet the state’s financial responsibility requirements by getting coverage through the MAIF. Because auto protection obtained through this program may not necessarily be the cheapest, residents are encouraged to periodically search for cheap Maryland car insurance by shopping around. Many drivers may be pleased to know that typically incidences are only kept on an individual’s driving record for three years, and insurers are prohibited from taking older events into consideration when setting a person’s rate.
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Although the MAIF can be tremendously helpful for many motorists, vehicle owners are urged to frequently compare policies to find plans that may be less expensive or include more coverage. Comparing quotes over the World Wide Web can be a quick and simple way to explore the prices of possibly dozens of insurers at once. Additionally, with no obligation to make a purchase, residents can shop as often as they please. Making the effort to seek out low cost auto insurance may allow an MD motorist to leave the MAIF program and find a policy through their own efforts.