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Maryland Auto Insurance Fund projects tighter finances as policy counts fall; lawmakers weigh affordability and assessments
Summary
The Maryland Auto Insurance Fund told the House appropriations subcommittee that policy counts fell sharply after 2024, driving lower earned premiums and projected net losses even as the fund considers operational changes and a pilot six‑month policy term to reduce down payments.
The Maryland Auto Insurance Fund told the House Appropriations Committee’s Transportation and the Environment Subcommittee that it expects the fund’s operating budget to rise modestly to $36.5 million in calendar 2026 while continuing to face declining policy counts and material operating losses.
Budget analyst Kelly Norton told the subcommittee the 2026 budget is projected to increase 3.2% from 2025 and that the insured division will see the largest salary increases and IT contract costs. Norton said the insured division projects a net loss of about $14.3 million in 2025 and that a larger net loss is projected for 2026 absent changes.
Director Al Redmer said Maryland Auto was created ‘‘50 years ago to be the insurer of last resort’’ and described how pandemic-era market shifts and subsequent underwriting changes by private carriers doubled the…
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