Key Takeaways
- MAIF is Maryland's residual market insurer for drivers who cannot obtain coverage in the standard market
- Drivers must be declined by at least two standard insurers to qualify for MAIF
- MAIF provides the minimum required coverages including liability, PIP, and UM
- Rates are typically higher than the standard market but provide essential coverage
- MAIF operates as a nonprofit instrumentality of the state
Last updated: January 2026
Maryland Automobile Insurance Fund (MAIF)
Overview of MAIF
The Maryland Automobile Insurance Fund (MAIF) is the state's residual market mechanism for auto insurance, providing coverage to drivers who cannot obtain insurance in the voluntary market.
MAIF Structure
| Aspect | Description |
|---|---|
| Type | State instrumentality (nonprofit) |
| Purpose | Insurer of last resort for auto insurance |
| Oversight | Maryland Insurance Administration |
| Funding | Premium revenue, not tax-funded |
Eligibility Requirements
Who Qualifies for MAIF
To obtain MAIF coverage, applicants must:
- Valid License: Hold a valid Maryland driver's license
- Registered Vehicle: Vehicle must be registered in Maryland
- Market Declinations: Been declined by at least two standard insurers
- Premium Payment: Ability to pay required premium
Common Reasons for MAIF Placement
- Poor driving record (multiple violations)
- DUI/DWI convictions
- Multiple at-fault accidents
- Young drivers with no prior insurance
- Lapses in prior coverage
- New drivers to Maryland
Coverage Provided
Standard MAIF Coverages
| Coverage | Included | Limits |
|---|---|---|
| Bodily Injury Liability | Yes | 30/60 minimum |
| Property Damage Liability | Yes | $15,000 minimum |
| Personal Injury Protection (PIP) | Yes | $2,500 minimum |
| Uninsured Motorist (UM) | Yes | 30/60 minimum |
| Collision | Optional | Actual cash value |
| Comprehensive | Optional | Actual cash value |
Coverage Limitations
- Limits cannot exceed standard minimums initially
- Higher limits available after satisfactory payment history
- Optional coverages may have restrictions
- Deductibles may be higher than standard market
Application Process
Steps to Obtain MAIF Coverage
- Declination Documentation: Obtain written proof of declination from two insurers
- Application Submission: Complete MAIF application through licensed agent
- Premium Quote: Receive rate quote based on driving history
- Payment: Pay premium (often quarterly or semi-annual)
- Policy Issuance: Coverage begins upon payment
Required Documentation
- Valid Maryland driver's license
- Vehicle registration
- Two declination letters from standard insurers
- Proof of address
- Payment for initial premium
MAIF Rates and Costs
Pricing Factors
MAIF rates consider:
| Factor | Impact |
|---|---|
| Driving Record | Major factor - violations increase rates |
| Prior Insurance | Lapses result in higher premiums |
| Age and Experience | Young drivers pay more |
| Vehicle Type | Sports cars, luxury vehicles cost more |
| Coverage Selected | Higher limits = higher premium |
Rate Comparison
- MAIF rates typically 20-50% higher than standard market
- Premium must be paid in advance
- Payment plans available for some applicants
- Rates decrease with clean driving record
Transitioning to Standard Market
Pathway Out of MAIF
Drivers can move to standard insurers by:
- Maintaining clean driving record for 3+ years
- Maintaining continuous coverage without lapses
- Completing required SR-22 periods (if applicable)
- Shopping for quotes after improvement period
Exam Tip: MAIF requires applicants to be declined by two standard insurers before accepting coverage. MAIF is a nonprofit state instrumentality, not funded by taxes, and provides essential coverage for high-risk drivers.
Test Your Knowledge
How many declinations from standard insurers are required to qualify for MAIF coverage?
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D
Test Your Knowledge
What type of organization is the Maryland Automobile Insurance Fund (MAIF)?
A
B
C
D