Maryland allows approved car insurance price caps starting July 2027

The Maryland Automobile Insurance Fund’s executive director may establish a program that caps personal car insurance prices. Drivers must meet the Fund’s existing coverage requirements and have household income at or below 250% of the federal poverty level. The insurance commissioner must review and approve the program. Prices cannot be excessive or unfairly discriminatory. Prices may be below what is needed, but the overall premium shortfall cannot exceed 20% of the Fund’s net written premiums. The program cannot cause the assessment allocation percentage for personal car insurance to exceed 1%. The commissioner may require changes if rates fail the program’s requirements, either financial limit will no longer be met, or the program violates other insurance rules that apply to the Fund resources under this article of law. The program authority takes effect July 1, 2027, and expires at the end of June 30, 2029.

The Industry Automobile Insurance Association’s board must lower the assessment allocation percentage ceiling for personal car insurance from 3% to 1%. The ceiling limits the percentage used to allocate assessments, or charges to insurers, for personal car insurance. The lower ceiling applies through June 30, 2029.