Lawmakers are considering a bill that would allow the Maryland Automobile Insurance Fund, the insurer of last resort for many motorists, to accept installment payments like private companies.
Advocates say the proposal could save the average MAIF customer up to $300. But lobbyists argue the measure could hurt the industry that makes its money financing premiums.
The General Assembly has previously considered changing the requirement that drivers pay the full premium upfront for three consecutive years. This year, the idea has support from Gov. Martin O’Malley and Senate President Thomas V. Mike Miller, Jr.
Insurance Commissioner Ralph S. Tyler said he supports the measure because it would lower costs and he thinks high insurance costs might discourage people from having any insurance at all.
Premium finance companies have opposed changes in the system, arguing their services help reduce the risk for MAIF, which has higher cancellation rates than other insurers, said Bryson Popham, a lobbyist for Agency Services Inc.
Topics Legislation Personal Auto Maryland
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