Auto insurance is mandatory in all states of America. Yet, these policies are hard to get and in many cases, they are very expensive. So, a lot of people prefer to go without insurance, despite the law. In order to overcome this problem, the Maryland General Assembly constituted Maryland Automobile Insurance Fund, or MAIF, in 1972. This insurance is aimed at people who do not qualify for policies with other private and state insurance providers. Low income group people, who cannot bear the high cost of private auto insurance, can also apply and gain these benefits. 2006 was a special year for this scheme since it broke into the ten largest private passenger vehicle insurers in Maryland. Since then, the number of polices have increased drastically.
Who are eligible for the policy?
The policy does not reject a lot of applications. In fact, rejections are very rare. However, not all are equally eligible under the policy. Since it is meant for a specific group of people, you need to submit proof of rejection by two other private providers, along with reasons for rejection. Low income group people should produce their income proof. People with a bad driving history and bad credit history can make use of MAIF since it is very difficult for these people to purchase other policies. At the same time, people who do qualify under other policies and who do not belong to low income group are not considered eligible for the policy.
What are the premium options?
Premiums for these policies are the some of the lowest in the insurance industry. Options can be customized depending on your paying capacity. The policy is provided by all regular insurance companies in the state. Payments are accepted through credit cards as well as debit cards such as Visa and MasterCard. Since low premiums are easy for people, cancellations and lapses under this policy are very few and sporadic.
Coverage provided under this plan
MAIF provides liability insurance in which aid is provided to cover medical expenses for the other person involved in a crash that happened because of your negligence. Damage to property because of your negligent driving is also covered. As per current Maryland rules, minimum liability is $30,000 for every person, $15,000 for every accident that leads to property damage and $60,000 for every accident that leads to bodily injury. People who lease a car can choose higher liability limits, which are available at extra premiums. Liability insurance is the basic cover required.
Additional covers that can be included in this policy are car repair, personal injury protection and comprehensive coverage for theft and damage due to fire or natural.
In short, the Maryland Automobile Insurance Fund covers all basic requirements as well as certain optional requirements. If you are frustrated with repeated rejections by private insurance companies, you can opt for this policy and enjoy complete coverage.
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