The Maryland Automobile Insurance Fund (MAIF) is liability insurance for those who are unable to purchase their state’s required minimum coverage from a private insurance company. In order to drive in the state of Maryland, drivers are required to purchase bodily injury liability and property damage liability coverage to pay for the medical bills and repair bills due to a collision in which they have been found at fault.
In Maryland, drivers must be able to prove that they have $20,000 bodily injury coverage for at least one person hurt in the collision, $40,000 to cover at least two people’s bodily injury expenses and $15,000 for property damage. Those who do not purchase these minimum requirements will be vulnerable to receive several penalties.
Since it is mandatory to purchase liability insurance, those who shop around for a private insurance company but are constantly denied need another alternative. For this reason, the MAIF came into being. It is an alternative to private insurance for residents of Maryland. The other requirement to qualify for MAIF is to be a licensed driver in the state of Maryland; if they do not currently have a Maryland driver’s license, they can still qualify if their vehicles are registered with Maryland’s Department of Motor Vehicles (DMV).
One common reason that people will need to take advantage of the MAIF is if a driver needs an FR-19. The FR-19, the short name for the Maryland Insurance Certification, certifies that the registered owner of the vehicle will maintain liability insurance coverage on the vehicle as long as it is registered. It also certifies that the automobile will never be driven if the insurance policy lapses or is cancelled.
Another reason people will need the MAIF is if they have been convicted of DUI, reckless driving or causing a collision without having purchased liability coverage. These people are difficult to insure, because they are considered by private insurance companies to be a high risk. In these cases, the courts will mandate that these drivers obtain an SR-22. They can receive an SR-22, Certificate of Financial Responsibility, from the MAIF to provide proof of liability insurance.