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Bill

HB 1098

Insurance - Automobile Insurance - Maryland Automobile Insurance Fund and Affordability Study

2025 Regular Session Introduced by David Fraser-Hidalgo and 1 co-sponsor

Maryland law establishes an auto insurance affordability study commission to examine feasibility of creating a state-run automobile insurance fund as alternative to private market.

Approved by the Governor - Chapter 395
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Bill Summary · HB 1098

Legislative bill overview

HB 1098 establishes a study commission to examine the feasibility and structure of a Maryland Automobile Insurance Fund and analyzes factors affecting auto insurance affordability in the state. The bill directs the commission to report findings and recommendations to the legislature by a specified deadline.

Why is this important

Maryland residents face rising auto insurance costs, and this study represents a potential pathway toward state intervention in the insurance market. A state-run insurance fund could provide an alternative to private insurers, potentially offering lower rates for high-risk drivers or underserved populations, though implementation would involve significant regulatory and financial considerations.

Potential points of contention

  • Market intervention concerns: Creating a state insurance fund raises questions about whether government should compete with private insurers and potential costs to state finances if the fund operates at a loss
  • Scope and feasibility: Designing an effective state fund requires addressing complex questions about eligibility, premium-setting, claims management, and solvency that the study must evaluate
  • Insurance availability vs. affordability trade-off: While a state fund might lower rates for some drivers, it could affect private market competition and potentially increase costs for lower-risk drivers who currently enjoy favorable rates

Compiled from official sources — confirm details with the bill’s official record.

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