In the United States, it is required by law to carry auto insurance. Drivers who drive without the minimum required amount of insurance could face penalties such as fines, losing their driver’s license and/or vehicle plates, and may also be prohibited from registering a vehicle or renewing a suspended registration. State minimum liability limits differ from state to state. All drivers in Maryland are required to carry the minimum underinsured motorist and personal injury protection liability limits.

MAIF was designed to help motorists who cannot obtain insurance in the private insurance market. It is an independent agency and reports directly to the governor while complying with the state legislature. However, because it is an independent agency, all funds are collected from the insurance premiums and the agency is not entitled to state funding. Therefore, any unpaid debts are not considered to be those of the state of Maryland.

Persons eligible for MAIF insurance are residents of Maryland who are unable to obtain private insurance, and who have a valid Maryland driver’s license or Maryland registration. Individuals who have had too many traffic violations, DUI convictions, or accidents may find it extremely difficult to purchase an auto insurance policy from private insurance companies. MAIF is a low cost alternative to help these drivers obtain liability insurance.

MAIF has several agencies throughout the state of Maryland who can help drivers with a less than perfect driving record obtain liability insurance at a low cost. It is a convenient alternative for drivers who have had their insurance coverage cancelled, or who have been turned down by two or more insurance companies.

Maryland’s approach is somewhat different from that of most other states, which handle uninsurable motorists through the use of a designated pool of drivers who are then randomly assigned (at higher rates) to an insurance carrier doing business in that particular state. In this way, insurance companies in other states can still find themselves required to insure drivers they originally declined coverage for.

In general, MAIF is a self-financing entity which depends on its rate structure for revenue, much like any other insurance company. MAIF does possess the ability to cover any annual operating deficit through an assessment upon the policyholders of all other automobile insurance companies in Maryland, but this assessment has been used rarely and has never exceeded a sum of five dollars per policy assessed.

One significant difference between MAIF and ordinary auto insurance policies is that MAIF cannot be sold on an installment plan. Its policyholders must either pay in full upfront or else make use of a third-party policy premium finance company. More than 1500 private insurance agents are authorized to sell MAIF policies, making it widely available to all qualified Maryland residents no matter in what part of the state they reside.

You can go to the MVA’s website at www.mva.maryland.gov and add your three emergency contacts in just a few minutes.   You will need your Driver’s License Number to complete this process.

1.      Go to the website:  www.mva.maryland.gov
2.      Go to “On-line Transactions” (upper left) & click on “More”
3.      Click on “Emergency Contacts” (bottom of left column)
4.      Follow prompts

Another note… Beginning January 1st, 2012, the MVA will no longer be sending out Driver’s License renewal notices.   It’s your responsibility to keep track of when it’s due for renewal.  And be careful, if you miss your renewal date for over a year, you will have to take a driver’s test again!  Driving without a “valid” Driver’s License is considered a MAJOR VIOLATION & could affect your insurance premium.

FYI…. Your Driver’s License renews on your birth date every 5 years!!!   Check your driver’s license….Is it time to renew??

Be a Good Neighbor & pass this valuable information along to family, friends & colleagues on your email list.

The first thing that goes into determining a person’s rates is his or her likelihood of getting into an accident. Insurance companies make their profit by collecting more from premiums than they payout for claims, so if they need to pay for a lot of repairs they will raise the rates to compensate. If you’ve been in an accident, the insurance company may raise your rates to make up for the repairs they paid for, or because you may be at a higher risk of being involved in another accident in the future. Additionally, if you have a history of traffic citations you may be considered higher risk.

Other drivers who are considered high risk include teenagers and new drivers; because they do not have a long driving history to base the rates on, insurance companies will start them with higher premiums than experienced drivers. Also, men — especially men under 25 — will usually pay slightly more for their car insurance than women. Men are statistically more likely to be involved in accidents, and twice as many men die each year in motor vehicle collisions than women.

Coverage also plays a major role. The more you expect the insurance company to pay for in the event of an accident, the higher your premiums will be. Basic liability insurance is cheaper than full coverage because in the event of an accident you will be responsible for paying the cost of your own repairs.

If you’re looking to change your insurance, you should take the time to understand what goes into your car insurance rate before you start searching for quote comparisons online. Then, once you understand your risk as a driver and the cost of your coverage, you can make an informed choice about your insurance.

The next thing companies consider is financial responsibility. Where do you stand with your insurance company? Do your make your payments on time? How is your credit score? When your good standing with the insurance company is brought into question, and/or your credit score is in worse condition than you might prefer, you may find that this is one of the major culprits for your rate increase.

The third and final consideration is automobile history. If your car has a lot of problems with it, often necessitating repair, that can be a problem; not only does your wallet take a beating, but it can convince an auto insurance company to raise your premiums. This is especially true if you’ve been in a lot of accidents. Negative write-offs like these can really damage your vehicle report.

Much of the time, the reason reckless drivers often have to pay more is based on two things: accidents and traffic tickets. The bigger risk you have of filing a claim on your policy, the more your auto insurance company will deliberate on your rates. When you get into accidents and receive traffic violations, this risk increases. The insurance company always loses money when you file a claim. The reasoning is simple in that they must confirm you’re paying for a rate that won’t give them a loss in revenue. They’re running a business after all, so they will make certain that you’re covered as an unsafe driver as long as high risk on your end is posed to them.

There are certain, proven ways to best choose a car insurance company. One of the safest and strongest car insurance companies anyone could possibly ever use can be found at www.roadwayauto.com/. Roadway Insurance has several advantages and benefits over many other companies.

Quotes and Rates

This company will provide you with free rate quotes either online, by telephone, or in person at one of their convenient offices. Free quotes are a strong indicator that the car insurance company you’re considering truly knows how to best serve its potential customers. Roadway has been giving free quotes to all of its prospective insurance customers for years with great success.

Secure, Complete Coverage

Another way to choose a car insurance company is to feel comfortable that they have the strong financial resources to be able to provide you with fully secure and comprehensive coverage and that they will be capable of quickly and gladly paying out and covering all claims you may have. Roadway is definitely such a company.

Insurance for Everyone

It’s essential that the car insurance company you select is willing and capable to give coverage and policies to any driver, even those with bad driving records. Roadway is certainly one of these companies. Serving the Maryland and DC areas for years, they have among the widest varieties of policies available compared to other car insurance companies.

Professional Level of Service

Another very intelligent way to choose a car insurance company such as Roadway is to judge the professionalism of their customer service staff. The more professional the better. Locally owned, Roadway is extremely courteous, helpful, knowledgeable, and their main business goal is to provide the highest level of customer satisfaction and service that any car insurance company can possibly provide. They’ll also help you understand and interpret any aspect of your policy and co

An individual wanting to be insured by MAIF must meet certain criteria and prove their eligibility. An applicant should be a resident of the state of Maryland or an active duty member of any branch of the armed forces of the United States. An applicant can be an employee of the United States Public Health Service or a student enrolled in an accredited school, college, or university. If an individual is serving a medical internship, they are also eligible to apply.

Applicants are also required to have a Maryland driver’s license which can be a problem if you are trying to get insurance in order to obtain a license. A person must have insurance to obtain a Maryland driver’s license and must have a license to apply for MAIF. This situation will arise if a license from a previous state expired before a license was obtained in Maryland. Fortunately, an insurance agent can help applicants work through this dilemma. The other requirement before a person can apply for MAIF is that an individual must have been turned down for automobile insurance coverage by two companies for a reason other than non-payment.

MAIF is available to any driver whose insurance company cancelled their policy. The cancellation might have been due to excessive accidents, DUIs or as a result of excess points on their driving record. Insurance companies will quite often ask parents to remove teenagers from their policy as a result of the teen’s driving records. Insurance agents will recommend MAIF for the teens in order to keep the teens insured and the parents as a happy customer. MAIF will not insure motorcycles or scooters. MAIF insurance is available from most insurance agents.

 Full coverage insurance is what everyone needs to have. It covers everything. Have an accident that isn’t your fault and the motorist that caused it isn’t covered. You will be covered. If you are leasing or there is a lean on your car you are required to carry full coverage insurance.

Due to the bad economy, when acquiring insurance quotes you should make sure the policy covers un-insured motorist. People currently are having a hard time making ends meet and it seems like insurance is one thing that they will let lapse. Though states now are requiring insurance companies to turn in anyone that lets insurance lapse, there are still people out there that are getting away with it. If you are in an accident involving someone that does not have insurance the cost to you can be outrageous. Not only will your own insurance rate go up, but you will also have the expense of fixing your car. That is where un-insured motorist insurance comes in. It will cover the majority of the costs.

If you can’t afford the full coverage insurance, a good insurance to take out is the comprehensive liability. This policy not only covers the basic insurance needs but it covers theft, fire and vandalism. You never know when someone will decide to take your car for a joy ride without your permission or when the neighborhood kid will get mad at his/her parents and take it out on your car. This policy will also cover glass breakage. Ever been traveling down the road and suddenly you hear a “ping” from a gravel? That gravel could cause a hairline crack that eventually will cause a large crack in your window. That crack is covered. So besides being a law, it is just smart to have insurance. Always expect the unexpected. Protect your car.

When receiving quotes for auto insurance, an insured should have the current policy available for agent to view or readily available to refer to, if receiving a quote by phone. Understanding the coverages on the policy will assist in determining a need for that coverage. As stated above, each policy must have the minimum state requirements, but is that enough? Only the insured can decide. Keep in mind, though, most drivers do not realize or consider the intensity an accident could involve. No one can fully cover all possibilities nor could one purchase coverages that would undoubtedly cover any accident. Even if an insured purchased all coverages available and at the highest limits available, the possibilility of an accident exhausting all coverages exists.

Understanding insurance coverage is no easy task, otherwise, we would all be insurance agents. An insurance agent is able to fully explain coverages, but each insured should take the time to understand the coverages available. This will save time and could save money. Bodily Injury is a liability coverage paid to the specific limit purchased and listed on policy for anyone, other than the insured, hurt in an accident. Property damage pays up to limit purchased and listed on policy for damage to property belonging to anyone other than insured, but caused by insured’s vehicle. If an accident occurs, with an auto insurance policy showing only minimum requirements, the most this policy will cover is $30,000 for bodily injuries to another party and $15,000 for damages to another parties vehicle. Is that enough? How much is an ambulance ride, emergency room visit, doctor bills, medication, etc.? How much is that vehicle worth, how much to repair or replace it? If the answers equal more than what is showing on the policy, the insured could be left liable and required to pay restitution. To find answers and more information, to speak with an experienced, helpful agent and/or get a quote visit http://roadwayauto.com/services/car.aspx and get the service you deserve.

Driving Record

Traffic violation history as stated on a person’s driving record may compel an insurance company to cancel a policy holder’s account. Excessive violations indicate that the driver may not operate a vehicle safely or may not possess the appropriate skills to safely operate a vehicle, thus making him or her a financial liability.

Accident History

As with a poor driving record, a history of multiple vehicle accidents may send a signal to the insurance company that the policy holder is not a safe driver and may be a financial liability.

Failure to Pay Premiums

Like any other business that provides goods or services on credit, insurance companies typically do not tolerate late or missed payments for very long. Frequent delinquent or missed payments could result in an insurance company canceling a policy holder’s insurance coverage.

For people that are in the position of not being able to be insured by a private insurance company for any of the above reasons, MAIF can provide the appropriate amount of coverage to ensure compliance to Maryland auto insurance laws and regulations. The eligibility requirements are current state residency and possession of a Maryland driver’s license or vehicle registration.