Maryland Auto Insurance Fund Covers Those Not Coverable

2007-03-08 10:33:40

( Insurance )



The Maryland Auto Insurance Fund is an independent agency created by Maryland State law in 1972. Its stated purpose is to provide Maryland auto insurance coverage for residents who cannot obtain coverage from private insurers offering auto insurance in Maryland.

If you are a Maryland resident, you will be glad to note that not a cent of your tax dollar goes to the Maryland Auto Insurance Fund. The Fund gets its operating money from insurance premiums and investments.

When you purchase auto insurance in Maryland, you will find over forty companies licensed to sell Maryland car insurance. These companies are all listed in the latest Maryland auto insurance rate guidebook, which you can access through the Maryland state insurance department. Although it is a state agency, the Maryland Auto Insurance Fund is listed in the rate guidebook.

The guidebook will help you tremendously in comparing rates for auto insurance in Maryland. You will note that the published rates are for the minimums established by Maryland car insurance authorities. You will definitely need to buy more coverage than the minimum. As much as possible, experts advise you to have enough coverage to protect all your assets from losses and injury claims.

The Maryland Auto Insurance Fund can be viewed as an insurer of last resort. Normally, you would take your business to private insurers who can offer lower rates.

But some drivers are not acceptable to these private Maryland auto insurance companies. If you are one of them, you can get coverage from the Maryland Auto Insurance Fund. The premiums you have to pay are higher, because the risk profile of drivers in the insurance pool is worse than those accepted in private Maryland car insurance companies.

Currently Maryland auto insurance law prohibits Maryland Auto Insurance Fund from accepting installment payments on premiums by its customers. You will need to pay the whole amount of premiums for the period covered in your policy.

If you cannot afford to pay the whole premium, there are premium finance companies that lend money expressly for the purpose of paying your Maryland Auto Insurance Fund premiums. Almost all of the premiums paid to the Maryland Auto Insurance Funds are financed through these companies.

Whatever your driver risk profile is, you can be assured of coverage for auto insurance in Maryland.


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