The Maryland Automobile Insurance Fund has prevailed over a challenge to its most recent 52.8 percent increase in rate for sedans. Acting Commissioner James V. McMahan upheld the increase in a recent order. The new rates affect nearly 70 percent of the state’s sedans. The state residual market insurer also received approval to increase its safe driver discount from 15 percent to 20 percent per year for a maximum of 60 percent over three years for those sedans that remain accident free. The filing also did away with physical damage coverage, which is not a mandatory coverage.
Sedan owners had claimed the MAIF data was inaccurate and its methodology flawed. But MAIF representatives showed that a much larger rate increase of nearly 200 percent could be justified. The last time rates were increased for MAIF’s sedan business was 1997, when they went up 75 percent.
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