In Maryland, the state law requires licensed drivers to maintain minimum automobile liability insurance coverage on all operational vehicles registered in the state. Maryland drivers who fail to maintain minimum automobile insurance coverage face serious penalties and fines. The consequences of driving an uninsured vehicle include loss of license and vehicle registration. In addition, motorists without auto insurance may receive fines of one- hundred and seventy five dollars for the first month of lapsed coverage, seven dollars a day thereafter, and a twenty-five dollar reinstatement fee. Uninsured motorists in the state also face additional penalties. These include the mandatory confiscation of vehicle license plates and prohibition from registering vehicles or renewing suspended vehicle registrations. The Maryland Automobile Insurance Fund (MAIF) is a high risk insurance pool for Maryland drivers who are unable to obtain automobile liability insurance from private insurance companies. Maryland drivers who have poor driving records because of numerous traffic violations, accidents, or DUI convictions may find it difficult to obtain or maintain automobile liability insurance from private insurance companies.
The MAIF is an independent insurance company which was established in 1972 by the Maryland state legislature to provide insurance alternatives for Maryland residents. Applicants qualify for MAIF insurance in Maryland if they have been declined automobile liability insurance coverage by an insurance provider, or coverage is cancelled. In addition, applicants must meet the following requirements to obtain MAIF insurance coverage. These include possession of a valid Maryland state driver’s license and verification of state residency. In addition, the automobile which requires liability coverage must be registered in the state of Maryland. If applicants meet these requirements, they are eligible to apply for liability insurance with the Maryland Automobile Insurance Fund. There are several insurance agencies located throughout the state which provide MAIF insurance coverage for drivers with less than perfect driving records. Operating a motor vehicle without the minimum standards of automobile liability insurance is a serious offense in Maryland. MAIF automobile liability insurance offers Maryland residents cost-effective options for obtaining automobile insurance when their coverage has been declined or cancelled.