AUTO INSURANCE :

FREQUENTLY ASKED QUESTIONS

Updated January 2010

 FAQS:

Are there Maryland laws that regulate rate increases and policy cancellations by auto insurance companies?

Yes. The primary law regulating these issues can be found in Maryland’s Insurance Code Section 27-601 through 27-609.

I have been convicted of a DUI? What can happen to my car insurance?

Your insurance company may terminate coverage for a DUI conviction according to Maryland’s Insurance Code Section 27-501. However, the insurance company must give you proper notice (see below).

Can my insurance company cancel my policy without notice?

No. Your insurance company must contact you by certified mail at least 45 days before the proposed action. If you disagree with the reasons mentioned on this notice you may protest the action within 30 days of the notice date. Come into our office as soon as possible so we can assist you in this process.

Can my insurance company cancel my policy before its renewal date?

Sometimes. Your insurance company may cancel your policy, with proper notice, for:

• nonpayment of premium
• DUI conviction
• a conviction of driving while impaired by drugs or drugs and alcohol
• a conviction of driving while impaired by controlled dangerous substance
• a conviction of a homicide, assault, reckless endangerment, or criminal negligence arising out of the operation of a motor vehicle
• a conviction of using the motor vehicle to participate in a felony

Come into the office with a copy of your insurance policy and any other relevant documents for more information about this matter.

I have been in a car accident and my insurance company concluded that I was not at fault. Will my rates go up?

Your rates will not go up for one accident that was not your fault if your driving record is clean for the preceding three years. However, rates do fluctuate from renewal date to renewal date for reasons outside the scope of your driving record. Come into the office with a copy of your policy for further information.

I have been in a car accident and my insurance company concluded that I was at fault. Can my insurance company raise my rates?

Yes. For a more detailed answer come into the office with a copy of your insurance policy.

I have been in three car accidents in the last 3 years and my insurance company concluded that I was not at fault for any of them. Can my rates go up?

Yes. A combination of any three accidents in a three year span, whether your fault or not, allows your insurance company to increase your rates. The rate increase will take effect when your policy renews. Come into the office with a copy of your insurance policy for more information about this matter.

I received a moving violation. What will happen to my car insurance rates?

Your company may reclassify you and increase your rates after your renewal date. For a more detailed answer come into the office with a copy of your insurance policy.

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 DISCLAIMER: This Fact Sheet is not a substitute for legal advice. Students with specific questions, problems, disputes, or cases should consult with our Office or another legal service provider of their choice. Do not act on or rely upon this information without first consulting with our Office or another legal service provider. The information contained here pertains to Maryland law only and not to the laws of other states. We cannot guarantee the accuracy of this information or of materials contained on other websites that we list.