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Maryland Insurance Administration • 800-492-6116 • www.insurance.maryland.gov
A CONSUMER GUIDE TO AUTO INSURANCE
May an insurer consider my credit history when establishing the premium for
my auto insurance policy?
Yes. When a person initially applies for an auto insurance policy, the insurer may
consider an applicant’s credit history when determining the premium to be charged.
If the insurer considers your credit history, it can only rely upon credit factors that
occurred within the previous ve years.
Additionally, the insurer/insurance producer must advise you, at the time of your
application, that your credit history is being considered and, if you request it, must
provide you with a quote that separately identies the portion of the premium that
is aected by your credit history.
Once the policy is eective, your premium cannot be increased if your credit score
worsens. However, if your credit score improves, that may help lower your premium
at renewal. Insurers that use credit are required to obtain new credit scores every
two years and you will automatically receive the benet of an improved credit score
if the new report shows an improvement that qualies for a better price under the
insurer’s led rating program. However, if you believe your score improved, you
may request the insurer to check it even if the two year period has not passed. You
are entitled to request the insurer to check your credit score once during any policy
period.
What happens if there is a lapse in my coverage? Will I have to pay a penalty?
Maryland law requires all owners of motor vehicles to purchase and maintain the
minimum coverage for bodily injury liability, Personal Injury Protection (PIP),
property damage, and uninsured/underinsured motorist protection. State law
requires you to have a minimum of $30,000 per person and $60,000 per accident
in bodily injury liability coverage, $15,000 in property liability coverage, and
identical amounts of uninsured/underinsured motorist bodily injury coverage, as
well as $15,000 in uninsured motorist property damage coverage and $2,500 in
Personal Injury Protection coverage.
By law, when an automobile insurance policy is cancelled or nonrenewed, the
insurer is required to notify the MVA. If, based on the information they have on
record, it appears to the MVA that you do not have insurance coverage, the MVA
may contact you and request that you provide a Maryland Insurance Certication