Maryland’s auto insurance market for drivers that private insurers won’t cover has received approval to offer combined single limits coverage up to $1 million for eligible businesses and vehicles.
Maryland Auto Insurance (MAI) says many contracts, particularly governmental contracts, require commercial drivers to be covered for up to $1 million. Business owners who are unable to obtain these higher limits in the standard auto insurance market are prevented from bidding on these jobs.
MAI guarantees the state’s minimum required coverage limits but according to Executive Director Al Redmer, Jr., these minimum limits are below the amount required to qualify for some contracts.
“We don’t want Maryland business owners to be held back, so we’ve taken steps to be able to offer higher limits coverage to our policyholders,” Redmer said.
MAI will continue to offer split limits coverage starting from the state’s minimum required $30,000/$60,000/$15,000 up to $100,000/$300,000/$100,000 for eligible vehicles. The new combined single limit coverage is available at the levels of $500,000, $750,000, and $1 million.
MAI sells automobile liability insurance to Marylanders who are unable to obtain it privately. To be eligible, a driver must have been rejected by at least two private insurers or have had automobile insurance cancelled or not renewed for any reason other than nonpayment of premiums.
MAI is funded by insurance premiums, investment earnings, and, when needed, assessments levied against all automobile insurers.
MIA works through a statewide network of more than 1,400 agents.
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