Jan 25, 2021

Auto Insurance Rates – 2021 Policy Update

Auto Insurance Rates – Eliminate Credit History 2021 Fact Sheet

Maryland law mandates that all drivers have auto insurance. The penalties for driving uninsured include a $1000 fine and up to one year of jail for the first offense. Yet, roughly 500,000 Marylanders actively drive uninsured because they can’t afford it. Even good drivers with low credit scores are charged as much as 123% more than drivers with high credit scores. This effect is most pronounced among Black and Brown motorists.
How does this happen? Maryland state law allows insurance companies to use non-driving factors when underwriting insurance premiums. Factors such as credit history, zip code, income, and education- none of which are related to an individual’s driving ability- are factored into the calculation, sharply raising the rates. This session, JOTF (virtually) returns to Annapolis to prohibit these predatory practices, and we need your help. Stay tuned for updates and opportunities to support as we fight to pass HB221 and eliminate the use of credit history in auto insurance rates.

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