Is the Maryland Automobile Insurance Fund (MAIF) Legit?

Last Updated on August 12, 2020

The Maryland Automobile Insurance Fund (MAIF) is available to drivers in Maryland who cannot find car insurance through a traditional insurance company.

If you are a high-risk driver with multiple accidents on your record, then normal insurance companies might decline your application. In this situation, you can either drive illegally without car insurance – or you can use the Maryland Automobile Insurance Fund to find an available insurance company.

Is the Maryland Automobile Insurance Fund legit? Can you get good car insurance through MAIF? Today, we’re explaining everything you need to know about this unique insurance system and how it works.

MAIF insurance review

What is the Maryland Automobile Insurance Fund?

The Maryland Automobile Insurance Fund (MAIF) is a government-run insurance system for drivers who cannot get insurance through normal methods.

If you have been declined by multiple car insurance companies, for example, then you might turn to MAIF for assistance.

A driver with several accidents or tickets, for example, might be unable to get insurance through normal car insurance companies. Or, some drivers have too little experience. If insurance companies decide you are too risky to insure, then you might turn to MAIF for car insurance.

When you buy car insurance through MAIF, you can find an insurer that allows you to legally drive in Maryland. Instead of illegally driving without insurance, you can drive legally with MAIF insurance.

Typically, MAIF car insurance is higher than normal insurance. You’re still a high-risk driver, and you still pay higher rates than an average driver. However, if you want to legally drive in Maryland, then you may have no other option than to work with MAIF.

The biggest advantage of the Maryland Automobile Insurance Fund is that it cannot turn down a driver: no matter how high-risk you are, and no matter how many accidents you’ve caused, you can always receive legal car insurance through MAIF.

As of 2015, Maryland now refers to the Maryland Automobile Insurance Fund as Maryland Auto Insurance (MAI). However, some use the terms interchangeably, and they’re identical programs – just with different names.

About the Maryland Automobile Insurance Fund

In 1973, the state of Maryland created the Maryland Automobile Insurance Fund. The goal of the fund was to provide car insurance to drivers who were unable to get car insurance through traditional insurers.

In mid-2015, the government renamed MAIF to MAI, although the purpose remains the same. The fund connects high-risk drivers in Maryland with car insurance when no other options are available.

The MAI operates as a mutual insurance fund. Drivers pay premiums, and those premiums are used to support an investment portfolio. When you make a claim, that claim is paid by the investment portfolio. Many other insurance companies in the United States operate in a similar way.

Who is Eligible for Maryland Auto Insurance (MAI)?

Any licensed drivers residing in the state of Maryland are eligible to apply to Maryland Auto Insurance (MAI).

To qualify for car insurance through MAI, you must prove you were denied by at least two insurance companies in Maryland.

Or, you can prove your previous insurer canceled your policy because of your actions. If you caused multiple accidents in a short window, for example, then a previous insurer may cancel your policy.

Not all drivers are eligible for Maryland Auto Insurance: you cannot request insurance through Maryland Auto Insurance if your previous insurer canceled your policy due to non-payment, for example. You only qualify if your previous insurer canceled your policy due to risky behavior – like multiple accidents, fines, or tickets within a short period.

How Maryland Auto Insurance Coverage Works

Maryland Auto Insurance (MAI) coverage works similarly to ordinary car insurance. The state of Maryland requires the same amount of car insurance whether buying through traditional insurers or through MAI.

According to the Maryland Financial Responsibility law, drivers must have a minimum of 30/60/15 coverage to legally drive, along with uninsured motorist coverage of 30/60/15 and personal injury protection (PIP) of $2,500. You can exceed these requirements through MAI. Or, you can match these requirements to meet the minimum legal limits.

  • $30,000 of bodily injury liability coverage per person / $60,000 per accident
  • $15,000 of property damage liability coverage per accident
  • $30,000 of uninsured/underinsured motorist bodily injury coverage per person / $60,000 per accident
  • $15,000 of uninsured/underinsured motorist property damage coverage per accident
  • $2,500 of personal injury protection (PIP), full or limited

MAI has certain maximum limits. You can obtain a maximum of $100,000 / $300,000 of bodily injury liability coverage, for example, and $100,000 of property damage liability coverage.

View the table below to compare Maryland’s auto insurance minimum legal limits to the MAI limits:

Coverage TypeMD Legal LimitsMAI Limits
Bodily Injury Liability (BIL)$30,000 per person / $60,000 per accident$100,000 per person / $300,000 per accident
Property Damage Liability (PD)$15,000 per accident$100,000 per accident
Uninsured / Underinsured Motorist BI (UM/UIMBI)$30,000 per person / $60,000 per accidentSame as your BI coverage limits
Uninsured / Underinsured Motorist PD (UM/UIMPD)$15,000 per accidentSame as your PD coverage limits
Personal Injury Protection (PIP)$2,500$2,500

Drivers can add certain optional coverage to their MAI insurance. You might add physical damage insurance (like collision and comprehensive coverage), rental reimbursement, towing coverage, and roadside assistance to your policy, for example. All of these coverages are optional, although they add protection to your policy.

How Much Does Maryland Auto Insurance (MAI) Car Insurance Cost?

Based on your risk, vehicle, driving experience, and other factors, MAI costs vary widely. Like any insurance company, Maryland Auto Insurance analyzes each driver’s risk factor before assigning premiums.

However, Maryland Auto Insurance works slightly differently from a conventional insurance provider. The organization does not consider credit score when calculating premiums, for example.

Car insurance providers typically check your credit score to determine premiums, but that’s not the case with Maryland Auto Insurance.

You can pay for Maryland Auto Insurance in three ways, including:

Pay in Full: You pay one full year’s worth of coverage upfront. You can save 3% to 5% by paying in full upfront.

Interest-free Installations: Pay your premiums over the agreed installment period without interest. You pay monthly or semi-annually, for example.

Third-Party Financing: Maryland Auto Insurance also offers payment through third-party finance companies. You borrow money and sign an agreement with a third-party financing company, then pay the company back over the installment period plus interest.

How to Obtain Maryland Auto Insurance (MAI) Car Insurance

To obtain auto insurance through the Maryland Automobile Insurance Fund (MAIF) or Maryland Auto Insurance (MAI) system, visit the Maryland Auto Insurance website. Or, search for a Maryland Auto Insurance agent in your area. An agent can explain coverage options and help you obtain a policy.

To file a claim with Maryland Auto Insurance, call 1-800-492-7120.

Final Word on MAIF Insurance

Maryland Auto Insurance, formerly known as the Maryland Automobile Insurance Fund, is a government-run insurance program for high-risk drivers unable to obtain insurance through other providers.

Yes, Maryland Auto Insurance is legit: the government of Maryland established the program in the 1970s. The program was originally known as the Maryland Automobile Insurance Fund (MAIF) and rebranded to Maryland Auto Insurance (MAI) in 2015.

If you have multiple accidents or tickets on your driving record, then normal insurers may decline your application. To legally drive, you must obtain insurance through MAIF / MAI.

Contact an MAI insurance agent or visit the MAI website to obtain an MAI policy today:

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
Back to Top