High Risk Maryland Auto Insurance
“High-risk” or drivers with a checkerd driving history have always paid more for their auto insurance coverage from coast-to-coast. However, in Maryland the upcharge for being a “bad driver” is unusually steep.
The insurer of last resort in Maryland is prohibited from allowing high-risk drivers to pay their auto insurance premiums in installments (ex. monthly) like other drivers, they must pay the entire annual premium up-front. If they can’t afford to pay the entire year of premiums up-front ($2,500 per year on average) they must borrow money to finance the premiums. In these cases 75% of the interest is within 5 months, in case the policy is canceled early
The system has been denounced as unfair to 70,000 low income or immigrant drivers in Maryland who are forced into this pool, after being turned down by other auto insurance companies.
About half the drivers enrolled in the pool are eventually canceled for nonpayment and more than 60% have no traffic offenses but were refused other auto insurance coverage because they lack a credit history or driving experience. Thousands are recent immigrants.
More information about Maryland auto insurance.
Tags: high-risk auto insurance, maryland auto insurance, non-standard auto insurance
